When one of the worlds largest and most successful removable storage companies buys another storage company for it's CD-RW technology I would say this represents a major endorcement for CD-RW. Well someone then might say, who cares, we haven't recieved a dime from this technology yet. Well they would be right, but I still believe that we will and I hope to provide some evidence that would help support this claim soon.
By Franklin Paul
NEW YORK, Oct 16 (Reuters) - Iomega Corp <IOM.N>., hurt this year by weak results and a slumping stock price, has healed itself internally and expects to report profits in the fourth quarter, its chief executive said Friday.
Still, Iomega's net loss of $0.06 a share, before a $0.03 a share charge related to its recent purchase of French drive maker Nomai S.A. <NOMF.PA> was lower than the $0.11 cent profit it reported a year ago.
Looking further, Iomega will benefit from the integration of Nomai, a former rival, which adds some European manufacturing options and the potential for new products.
"They've got some nice optical technology and we are intrigued with the capability they've got in CD-RW (CD-ReWritable), and that's a market that we would like to exploit," he said.
CD-ReWritable, or recordable CD drives, allows you to read, write and rewrite information to a compact disk.
Iomega's stock price, which has tumbled steadily throughout the year, traded Friday at 3-3/4, up 1/8.
13:29 10-16-98
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