>Lets face it, a market cap of 7 billion is unheard of!
It's actually closer to 6Billion.
This is slightly bigger than Seagate. While I don't really expect revenue to be approaching that of Seagate's soon, I would not be surprised if earnings did. If quarterly earnings climbed up to 70M, then it would approach that of Seagate. Last quarters earnings are 10M. Iomega has done that withing the last year. This is without the Jaz sales, and with some of the Jaz ramp up cost. Zip sales will continue to skyrocket, and a small increase in sales will yield a big increase in earnings. With the earnings they're getting from the disks, it will be justified.
I wouldn't be surprised to see 20 or 30 Mil next quarter, with 70 by end of year. The scale of these vendor deals is huge.
You must consider that Seagate is under a lot of competitive pressure. Hard drive company's earnings are no longer especially remarkable. Seagate is one of many hard drive companies splitting profits with the others, and all competing with each other. I figure seagate represents 1/3 of the market. Iomega probably makes 3 or 4 times their profit margin, so I would expect Iomega would only need maybe 1/9 or 1/12 or about 10% market penetration. I don't think this is unreasonable, with new markets appearing (Internet computers, camcorders, digital cameras, etc...) |
