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Non-Tech : Iomega Thread without Iomega
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To: Ken Pomaranski who wrote (8432)3/21/1999 1:30:00 PM
From: Kunal Taravade  Read Replies (1) of 10072
 
< Disk revenue was amazing in Q4. Very strong. My question: If all the margins are in the
disks, why is year over year earnings down 50%? If it really is 'it's the disks, stupid', then
what is the money sink? >

2 reasons, IMO:

1) Increasing R&D costs because of Clik and "other new products"
2) Huge increase in advertising costs between 1997 and 1998 (I think ad spending increased 300% over 1997)....

What do you guys think?

Kunal
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