>>So Q4 1998 had equal revenues, Lower SG&A expenses, same R&D, but ONE HALF the earnings reported Q4 1997. Therefore, one can infer that overall margins are decreasing, meaning that the increase in disk sales are not offsetting the falling ASP of ZIPS. Due to price drops and increasing OEM percentage. QED...<<
Ken -
I thought you were talking about all of 1998, vs. all of 1997.
Taking only the fourth quarters into consideration, though, you're still off. Your reasoning is fine, but one salient fact is wrong. Q4 1998 revenues were NOT equal to Q4 1997.
Q4 1998 revenues were (in thousands) $501,288 vs. Q4 1997 $546,766. A difference of -45 million, roughly. Net income was 19 million for 98, vs. 36 million in 97. A difference of -17 million.
Of course, there are a few other factors to consider, as well. The picture is clearer if you look at the statements of operations. Here's the link to all the info:
iomega.com
- Allen |
