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Non-Tech : Iomega Thread without Iomega

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To: Kunal Taravade who wrote (8443)3/22/1999 6:05:00 PM
From: Ken Pomaranski  Read Replies (2) of 10072
 
<< Increasing R&D costs because of Clik and "other new products" >>

Nope. R&D didn't change much year over year.

<< Huge increase in advertising costs between 1997 and 1998 >

Nope. Advertising actually went WAY down. In fact, earnings would look a lot worse if this stayed constant year over year.

What it tells me (and Mike pointed this out also), is that ZIPS actually have provided the majority of the profits in the past. So, contrary to popular belief, it is more than just the disks. Iomega will have to sells TONS more disks to make up for drive price drops.

kp

PS: Nice base at 5. I'm tempted to take a position, but I'm not yet convinced. My gut tells me there will be plenty of time to make money if this sucker turns around. I still have a hard time figuring out what will be the big catalyst that will result in ZIP / CLIK! sale increases galore... Iomega is in a tough position. If SG&A is increased again it will result in loses. Look at how great advertising worked last year... ;)
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