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Non-Tech : Iomega Thread without Iomega
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To: Rocky Reid who wrote (9109)4/15/1999 5:18:00 PM
From: David Harker  Read Replies (1) of 10072
 
All - looks like Zip is becoming the main product.
Here is a breakdown of zip vs. jaz revenues 1Q 98 vs 1Q 99,
amounts in $ millions:

Zip Jaz (Z+J Rev) TotalRev
--- --- --------- --------
1998 267 110 377 408
(65%) (27%) (non Zip/Jaz rev = 31, 8%)

1999 302 63 365 386
(78%) (16%) (non Zip/Jaz rev = 21, 6%)
(5 of the 21 was Clik)

It is VERY important that the flagship, "biggest name" product
is doing so well - the 39% increase in Zip disk sales and 44%
growth in Zip drive sales is the key! They are shipping
almost a million Zip drives per month.

Operating costs are reduced from 32% of revenues in 1Q98
(131/408) to 23% of revenues in 1Q99 (91/386). That means
Operating costs are now only 69.5% of what they were in 1Q98.
(91/131).

With costs falling and Zip sales growing at 39-44%, the bottom
line will grow nicely in the future. Clik is a wildcard that
may help, but Zip is where the $$ will come from. As for Jaz,
the 1998 Annual Report describes a lessening focus on that product,
as user surveys found it was mainly appealing to a professional
market, not a consumer market. So, they are reducing efforts
to sell it to consumers, to save $. The zip is growing well,
and can carry the company if the trends describe above continue.
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