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

To: D.J.Smyth who wrote (3157)	10/15/1999 11:18:00 AM
From: Ken Pomaranski	Read Replies (1) \| Respond to of 5023

<< so you're saying that regardless of the number of increasing zip drives, lower disk sales will continue to occur? Prove that on paper. It's not possible. >> What I pointed out is that ZIP disk shipments DECREASED in the present quarter as compared to last year's quarter, even though the installed base of ZIP drives INCREASED by over 10 million. So what you say is not possible has been proven by Iomega actual numbers. No paper proof necessary. Again, this is the really bad news. ZIP disk shipments MUST increase Q over Q for Iomega to have any chance of creating the ZIP cash cow. This FACT about this quarter bothers me a great deal. kp

To: D.J.Smyth who wrote (3157)	10/15/1999 11:58:00 AM
From: Rocky Reid	Read Replies (4) \| Respond to of 5023

Hate to say I told you so... Message 10557252 Revenues: $353 Million (DOWN 10% Year to Year) I was VERY close. Revenues actually declined only 9% (LOL!) year to year. GM: $71 Million (20%) Actual $86.6 Million (24%), a little better than expected. SG&A: $86 Million (24.5%) $72 Million (20%). Again, a little better than expected. R&D: $23 Million (6.5%) $17.8 Million. Again, better than expected. Earnings (LOSS): -$15 Million ($0.06) This is where it get a bit hairy. If one can decipher Iomega's latest attempt at Creative Accounting, you could buy their news of a $0.02 operating profit. However, "Restructuring" Charge after "Restructuring" Charge lends little credence to this. A Massive LOSS of ($0.29) is what actually occurred on the bottom line. Also pay attention to some other Creative tactics on the balance sheet, paying attention to those that would suggest Iomega is burning their office furniture to stay warm. The 40MB Bomb! will post a LOSS of ($11 Million) on sales of $7 Million. Bomb! LOSSES were actually over ($19 Million). What a complete disaster. Expect cancellation of the entire line next year. While it appears that Iomega has temporarily gotten a hold on operating costs, sales continue to decline at a torrid pace. Iomega is becoming a Smaller and Smaller company with less overhead. Expect this declining trend to continue. But for how long can Shrinking Revenues support a structure as flimsy as Iomega? You can only cut costs so far. Every sign has been shown that Iomega is continuing a Death March down to Bankruptcy.