Iomega - A Civil Discussion Message Board

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Non-Tech : Iomega - A Civil Discussion

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To: jwk who wrote (45)	3/13/1997 5:42:00 AM
From: tonto	of 1908

Dell opened their new manufacturing plant in Penang in January of 1996 for the purpose of reducing their manufacturing costs and centralizing their asian market which now represents 6% of their sales. They are focusing much of their marketing focus in increasing asian sales since the population there is 3 billion. You are correct, they are neighbors. The .02 cents per share appears to be correct and does not consider in the other savings. These are reductions in operating and tax expenses which are positive and assists IOM in profitability. They have made a strong move in reducing costs, but I do not know what their pricing is as to how this will ultimately affect margins. That has already been debated fully by others. It does appear though, that they are not falling apart and have made some very good decisions. We will find out about margins soon.

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