Any info about Iomega (IOM)? Message Board

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

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To: Rocky Reid who wrote (57987)	11/11/1998 10:21:00 PM
From: HRP	Read Replies (1) of 58324

Rocky responded to the following quote from Herb Fuller >>Iomega is a world wide company that is in a growing mode and getting larger every day << as follows: << I would like for someone here to please explain to me how a company that is: 1. Realizing shrinking Year to Year Revenue (-2% for 2nd Q, -9% for 3rd Quarter, possibly -15% plus for 4th Quarter) 2. Realized a falling Book Value (dropped from $1.67 to $1.52 this year) 3. Realized a radically declined Market Cap year to year 4. Fired a big percentage of its workforce 5. is seeing sales $$$ dropping quarter to quarter qualifies as "in a Growing Mode." >> Congratulations, Rocky, on the major improvement in the quality of your response. Iomega is growing because the unit sales of its Zip drives increased by 39% quarter over quarter and the unit sales of its Zip disks increased 30% quarter over quarter. The reduction in revenues resulted from the increasing percentage of Zip drive sales to the OEM market where margins are slightly negative. The increased percentage was to be expected as Zip drive customers purchased new PCs with built in Zip drives rather than buy a drive in the aftermarket. Although the margin for Zip drives sold to the OEM market was slightly negative, the loss on such drives was more than offset by the first purchase of Zip disks to be used with the drives. It zip sales continue their percentage increase for another quarter or two, gross revenues on a quarter over quarter basis will resume their growth. This growth will be supplemented by increased Jaz drive sales which had been going to Syquest and by new products. Your items 2 and 3 have nothing to do with growth of the company. Yes, number of employees (item 4) is a measure of growth but reductions in work force were related to a change of business model not slowing demand for the company's products. At unit sales increase, employment levels will resume their growth. Your item 5 is a restatement of your item 1. You are correct in stating that many followers of Iomega look at only the favorable arguments and ignore the unfavorable. But, you you exhibit the opposite fault! Whoever wants to profit by buying and selling Iomega stock should weigh relevant issues in a balanced way and recognize that momentum buyers and short sellers will have their short term effect. I encourage you to present valid, balanced arguments in favor of higher or lower valuations for IOM and to become a valued poster on these threads. hrp

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