Any info about Iomega (IOM)? Message Board

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

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To: robert read who wrote (53498)	4/23/1998 12:39:00 AM
From: Rocky Reid	Read Replies (2) of 58324

Some questions for Iomaniacs What is making Iomega a good long term investment? That fact Iomega just can't seem to make a profit? The fact that they are fighting a serious Cash Flow problem? The fact that Iomega is already drawing on their $200 Million line of credit (from the CC), and at the rate the Cash is bleeding, will max out this credit by the 3rd Quarter? What then? Share dilution a la SyQuest using the 138 Million authorized shares? The fact that their bread and butter cash cow retail Zips sales are drying up? That tie ratios are declining? That OEM sales were flat from 4th Q to 1st Q? If Zips are to become a floppy replacement, the percentage gains are very weak at best. That Vapor! will be bought only by a few tech-heads and Iomega investors? That Vapor! has the capacity to cripple laptop Zip sales?- More bread and butter gone. It is my estimation that at $200, Iomega will lose money on every drive sold because it will have to have a sizable FLASH RAM cache to operate, squeezing margins. Any thoughts? It is also my estimation that Vapor! will suffer serious product return levels and possible recall due to malfunctions in the field, and loss of data due to delicate moving parts inherent in mechanical disc drive design. Flash Cards are the Standard. They are reliable, durable, use very little power, and are very small INCLUDING the battery power. WHy should camera makers abandon the Standard to go with a proprietary system? That the Board of Directors is comfortable to go forward WITHOUT A CEO? Doesn't this strike you as a move for power that will ultimately result in a smiling puppethead being installed? That IOM is currently down 40% from its price 4 months ago? And 70% down from its all-time high? Is this an indication of strength? That Iomega pierced down into the low $6's, and could very well end up there again soon as earnings losses pile up? Again, that fact that Iomega just can't seem to make a profit?

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