Hi s. batch!
I enjoy your informative posts on the ingram stock levels.
if you missed my post before, IOM may have done a linear extention of its quarterly sales. With 12 weeks in this quarter ending march 28 1998, that is $30 million in sales per week to match their Q1 '97 revenue level of $360 million.
To break even with their estimated SGA spending of $110 million (up from Q4 spending of $104 mm), and R&D spending of $25 mm (up from Q4 spending of 24mm), or total op ex of $135 million, Iomega must make a gross margin on sales of 30% (down from 33% Q4).
So the calculation is as follows: $135mm in expenses / gross margin = breakeven point. $135/0.3 = $450 million.
Assumming Iomega projected a linear sales quarter...They have $300million in sales so far this quarter (2 weeks left), and need to sell $150 million in the next 2 weeks to recover to break even.
If they sell 100,000 jaz 2 drives at $400 wholesale, that is equivalent to $40 million. If they sell 100,000 jaz 1 drives at $200 wholesale, thats $20 million. So somehow in the next 2 weeks, they need to sell $90 million in zip/zipdisk/jaz1 disk/jaz2 disk.
If ingram does represent 10% of iomega sales, as it seems, your reports will give a good indication of how iomega does in the next 2 weeks!
Thanks for all your info.
BL |
