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Non-Tech : Iomega Thread without Iomega
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To: Jock Hutchinson who wrote (2408)10/20/1998 2:09:00 PM
From: Rocky Reid  Read Replies (3) of 10072
 
>>Do you think it's time for Iomega to arise from its problems and move back up to the high single digits?<<

Oh, why yes. High time. And since I own shares in IOM (at least, until Comdex), I wish it would. But I will be happy with just a 25% to 30% profit in this timeframe.

You see, the trouble for Iomega is shrinking sales and more competition. Iomega's revenue declines year to year were 2% in the 2nd Quarter, and 9% for the 3rd Quarter. Don't be suprised to see a 15% year to year decline in revenues for 4th Quarter 98.

Castlewood Orb is shipping ot OEM's right now, and it will be on store shelves stealing Jaz sales next month. Sony and Teac are coming in a BIG way as well with HiFD next month. Iomega may squeeze out a samll profit based on 4th Quarter strength. But this will be the last profit Iomega sees in a long time. By the 1st Quarter, the supply channels for Sony HiFD will be filled, and retail Zip sales will begin to decline very rapidly as a result. Iomega will lose more and more money as its bread and butter sits collecting dust in warehouses. Cut prices on Zip? Great. More revenue out the window.

So, I think it's about time for Iomega to arise from its problems. But it can't. A whole new set of problems for Iomega are about to hit store shelves real soon.
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