Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Jim Welsh who wrote (50331)	3/16/1998 11:50:00 PM
From: Cogito	Read Replies (2) of 58324

>>Are you (and others) so certain that the advertising campaign has failed at this point. I think Allen pointed out earlier that KE indicated in the conference call that it won't be until April or May before the results of the advertising campaign can be assessed.<< Jim - Not only that, but KE also said that the initial costs of the campaign might force the company to go cash-flow negative for a while. He basically said that demand needed to be shored up by building awareness of the need for removable storage. In light of those remarks, the current situation is not completely surprising. It is very rare for any company to grow without burning some cash along the way. Late in 96, one of the biggest bear arguments about Ioemga was that they were cash flow negative, and since they were lowering prices, they wouldn't be able to turn that around. In fact, the company started accumulating cash sooner than anyone expected, and now we're used to it. I can sure understand how people could conclude that the ad campaign isn't working, though. We're all geared for immediate results. So right now, the future looks red. - Allen

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