Any info about Iomega (IOM)? Message Board

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

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To: Gottfried who wrote (52801)	4/16/1998 9:56:00 PM
From: Rocky Reid	Read Replies (2) of 58324

Just looking at my notes from the IOM CC. 1-800-446-4972 -- (-$145 Million) Cash flow negative for Quarter. Expect to be Cash Flow Negative for the entire year! Zip sales have not reached 14 Million yet. 1.5 Million Jaz sold so far. Definitely slowing down! Zip accounts for 65% of revenue. Tie ratios down from 3rd Quarter '97. Jaz flat year to year. Ditto down year to year. OEM Zip number flat with 4th Q '97. This means retail Zip sales are WAY down! (But Bateh is happy, because according to him, this is good news! NOT!) Nomai has sold approx. about 500,000 Zip-compatible discs (where it is legal). Just imagine how many they could sell if it were legal elsewhere! Change to "Demand-Pull" strategy = read lower prices. This will reduce margins even more. Speaking of margins, they shrank to 25% Gross Margins. Rebate plans to the European channel.= lower margins. Have spent $20 Million on ads. Ads will continue through 2nd Quarter. $360 Million inventory! This is Up $70 Million from 4th Quarter. Bad. -- They can try and sugar-coat this all they want. This company is hanging on a string. If Zip falters one little bit, this house of cards come crashing down. SOny is on the way. Does anyone here really think that Sony HiFi will not steal Zip sales away from Iomega?

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