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Non-Tech : Any info about Iomega (IOM)?
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To: Kevin Linder who wrote (50623)3/18/1998 1:28:00 PM
From: Bill Lin  Read Replies (1) of 58324
 
Kevin,
with all due respect, i disagree strongly with your idea about a $300mm secondary offering and the synergy between IOM mgmt and incumbent DD manufacturers.

i agree that distribution costs will be reduced dramatically with the alliance or merger with another DD maker. However, you need to balance the reduction in expenses with the flexibility of developing new markets.

WDC, and SEG recently dropped the 3 inch market, because it was becoming too saturated with Fujitsu and IBM drives. They call it capacity realignment, or focusing on high margin products. I call it not being the low cost producer or having too high a cost structure.

Was it right for them? you bet.

Will SEG, WDC, QNTM, IBM or any other dd manufacturer pay 1.0+ sales to IOM to buy their sales stream? maybe last year after Comdex. Now, after they show declining sales...NOPE

However, the best candidate of all listed above is QNTM.

The $300mm in KE's hands is too scary to think about.

don't go there.

BL
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