Any info about Iomega (IOM)? Message Board

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

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To: Chucky who wrote (58101)	12/16/1998 11:02:00 PM
From: Cogito	Read Replies (2) of 58324

>>All, Could the shipment of all these new products at the end of the quarter be considered stuffing the channel?<< Chucky - I don't think so. Stuffing the channel means shipping mass quantities of product just before the end of the quarter in order to be able to book the sales in the present quarter rather than the next, thus artificially inflating revenues. The new products which are shipping won't be shipped in a large enough quantity to affect revenues in any meaningful way. Moreover, since Iomega has always used a conservative method of accounting for sales, channel stuffing wouldn't help them. They don't count any inventory in the channel past 30 days worth. So even if they shipped a month's worth of extra drives on the last day of the quarter, leaving 60 days of inventory in the channel, it wouldn't show up on the top or bottom lines. I'm sure I didn't explain that accounting business well at all. Sorry. But the point is still valid. Iomega doesn't do channel stuffing. End of story. - Allen

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