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To: Gottfried who wrote (8973)	4/12/1999 2:57:00 PM
From: Rocky Reid	of 10072

>> While I know the company acknowledged lower profit margin on OEM ZIP, I don't recall they admitted to a loss.<< Iomega Management has stated numerous times in Conference Calls and TV Interviews on CNBC in that they sell their OEM Zip drive at a "Negative Gross Margin." This means a LOSS. Just check out the IOM Conference Call transcripts from 2nd Q 98 up until the latest one. Key words: "Negative Gross Margin." Iomega then tries to qualify this sad situation by offering the lame excuse that they start making a profit with disk sales. Note that this is the exact same tactic Syquest tried with SparQ (and Iomaniacs derided it). I find it funny that some Iomaniacs now reverse their negative opinions on this strategy when Iomega tries to do it.

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