Any info about Iomega (IOM)? Message Board

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

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To: Herb Fuller who wrote (57266)	7/17/1998 9:20:00 AM
From: Jock Hutchinson	Read Replies (3) of 58324

Herb: Those numbers demonstrate that the key to profitability for IOM will be cost containment. As Bill Lin has pointed out many times, the disks promise to be a one billion dollar a year cash cow for the next two to three years. This will essentially bring about $.80 a share to the bottom line within the next year. People lose sight of the fact that the only way to build this market in the beginning was to do it through the aftermarket. IOM has succeeded in building a critical level of brand awareness. The next level is of course through OEM. Clearly there is an enormous risk associated with this next level, and it is possible that IOM will fail. Clearly, OEM drives will not produce a penny's profit. Indeed, if OEM breaks even, it will be a spectacular success. But for IOM to succeed at this price level, it merely needs to become a strong niche player in the high capacity removable storage market--not the dominant player. And since it is currently the dominant player in this field, I suspect that it will prevail. It must distance itself from goofy ad campaigns, goofier yet stock splits, and formerly goofiest CEOs.

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