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

To: Naggrachi who wrote (1725)	7/16/1999 3:27:00 AM
From: Reseller	Read Replies (1) \| Respond to of 5023

Just a couple of thoughts about the conference call. I also would like an 800 # to listen to the entire call ( if anyone has it please post ), Jody was cut off in the call and most of his prepared statement wasn't heard. He was doing a great job to that point and I what to hear the rest of what he had to say. The call was very open, gave me the feeling that these guys are laying it out just as it is. I'm sure Jody has gained a great deal of respect and creditability, his management style is coming through and I like the control that's been demonstrated, particularly with regard to the press releases. I like that they were cash flow positive, Marc Cohodes of Rocker Partners ( the short guys ) was adamant about IOM's inability to finance itself, and well, so much for that argument, they were counting on this badly to shore up their position. IOM had allocated their Zip chip production between themselves and their licensees, as noted by Edwin and myself, the appearance of NEC Zips is becoming more prevalent. I think IOM did the right thing by sacrificing their own sales by providing for their licensees production, it's a longer term view. The question that wasn't asked was how many drives have the licensees sold, NEC drives are prevalent throughout the secondary market. Glore's on his own record now, he should have written off the bathroom sink on this one and come to think about it they probably did. .There are those that claim that IOM can't make money but in my view it's not that they haven't made money it's that they've squandered their profits and opportunities. IMO the worst is out, Glore has shown he's got the guts to make the right decisions. Looking forward to the new products that I'm sure will be coming out. BTW they will have to start shipping new products in the later half of the third quarter in order to be in stock for the holiday period. Regards Reseller

To: Naggrachi who wrote (1725)	7/16/1999 10:20:00 AM
From: Rocky Reid	Read Replies (1) \| Respond to of 5023

Prepare For Even Worse Gross Margins Ahead Zip has 27% GM. Jaz 20% CD-RW has 15% GM MAXIMUM. More like 10% in real life. And these 10% GM sales are going to eat into those 27% and 20% GM sales. There is just no getting around this. Worse numbers are ahead for Iomega. Iomega's fundamentals are just getting worse and worse. --And Iomega is becoming a smaller and smaller company. Shrinking companies do not deserve multiples of 3 times over Book Value.