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Non-Tech : The New Iomega '2000' Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Rocky Reid who wrote (1074)	6/25/1999 10:35:00 AM
From: Cogito	Read Replies (1) \| Respond to of 5023

Rooky - Thanks for the lesson on basic finance, but Iomega's problem is not an excess of inventory offsetting obscenely high profits. Just look at their inventory turns from the last few quarters. If the company makes a net profit on any product, that's a plus. If a buyer of a CD-RW gets it from Iomega instead of a competitor, that's a plus. That buyer was unlikely to have bought a Zip or Jaz anyway. (The majority of such people probably already own Zip and or Jaz drives.) Look at it this way. If the company is losing money with the current product mix, how is it going to hurt them to add a new product to the mix, if that product is profitable? Right now they make money on Zip, and they lose money on Jaz. Clik! barely figures into the equation yet. In the next couple of quarters, if the only thing that changes is that they make money on Zip and ZipCD, then ZipCD is a good thing. - Allen