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

To: Ken Pomaranski who wrote (3164)	10/19/1999 2:28:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 5023

ken, it's not, necessarily, the number of zip disks sold that is important, but (a) the amount of total revenue derived from disk sales, and (b) zip disk sales as a percent of total zip drive revenue. If you follow through with calculations based on total zip disk sold as a percent of total zip revenue, you'll arrive at a more encouraging picture of zip disk sales as a comparative figure from 1998 3rd qtr to 1999 3rd qtr. for example, 3rd qtr 1998 showed total zip revenue (disks and drives) of 279 million with 2.4 million zip drives sold. 3rd qtr 1999 showed total revenue of $279 million, with 2.9 million zip drives sold. $111 per zip drive + disk in 1998 3rd $94 per zip drive + disk in 1999 3rd Accounting for higher increase in revenue for zip drive sold in 1998 is (a) 50% lower OEM inclusion (went from 40% OEM to 60% OEM as a total percent), (b) higher average zip drive prices. Factoring out these pluses for 1998, you arrive at a comparative price of $92 to $93 per zip drive plus disk for 3rd qtr 1998. Believe that 12 million disks were sold in 1997 4th qtr while 16 million were sold in 1998 4th qtr, 40% improvement. Only other measure was 1st qtr 1999 in which 17.4 million zip drives were sold - but in each successive qtr, disk disk revenue has increased as a percent of total zip revenue - even while zip drive sales to OEMs (the smaller take by IOM) has significantly increased. So, actual revenue derived from disk sales as a percent of total zip sales is slightly growing - which, in the end, is positive for the bottom line.