s. bateh and all IOM Longs... Vin Ordinaire called IOM Investor Relations and spoke to Tyler Thatcher yesterday. Here is a repost of what Tyler said. Not much really, but at least it looks like Mr. Glore will continue to cut costs this quarter and that there is a possibility that we will have more news items before end of June. Patiently waiting to see some upward momentum in IOM price. Mel
Reposted from TMF IOM board:
Subject: Investor Relations,
May 3, 1999 Date: 5/3/99 1:29 PM
Author: VinOrdinaire Number: of 21260
I spoke this morning with Tyler Thatcher to ask him a few questions. Here's the gist:
1) What's the status of Record/Play?
They continue to be optimistic about Zip as a recording device for downloadable content. The Soundstone deal was delayed due to legal implications which they're working out.
2) What does the 2Q guidance mean, break-even or break-even plus or minus 2 cents?
The guidance is for the same as last quarter's results, so break-even before special charges.
3) What's the timeline for PC Card Clik?
No month of release has been stated.
4) Why not announce the 2Q special charges in the press release about two California sites closed last Friday?
Closing these sites, which were divisional sites for Jaz and Clik, is the logical next step in moving from a divisional to functional structure. They are making further decisions this quarter and when all facilities and head count reductions are announced, they will announce the special charge.
5) What did Glore have to say at the H&Q conference on Apr. 28th?
His comments would not have included anything new from the AGM, which was held the previous week.
6) Is Clik now launched?
Putting out some advertising on our current platform.
7) Clik-based media players? Clik-based cameras? Any comment on the PC Magazine May 25th, 1999, quote that "reportedly, several manufacturers will announce digital cameras that save directly to Clik drive cartridges . . ."?
Varovision and Saehaen appeared at the IOM booth at (PMA? sorry, I missed what he said). He could not comment on the PC Magazine story.
I commented on the 4 7/8 share price and he responded that it would probably take a catalyst, and that currently the storage sector continued to be depressed and they were competing against the opportunity cost of investments in other sectors, such as the DOW up 10% in April. Positioning themelves for sustainable profitable growth.
My take on this:
To me, the significant news is that the cost-cutting is not over for the quarter. There will be further announcements. Aggressive cost reduction strikes me as one of the elements we need for profitability and a return to decent valuations of the stock, so I take the statement of further pending facilities and headcount reductions as a good sign for Iomega longs.
Long,
Vin
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