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

To: Mel Boreham who wrote (3247)	10/25/1999 6:05:00 PM
From: Mel Boreham	Read Replies (3) \| Respond to of 5023

Discussion by "Vin Ordinaire" on the Conference Call. Repost from TMF IOM Board follows: Subject: Re: Transcript: 3Q99 CC, with Q&A Date: 10/22/99 5:35 PM Author: VinOrdinaire Number: of 27987 Recommendations: 1 Here are some tidbits I noticed in the conference call. What do others think? Dunn's opening comments underwhelmed me. The comment I want to ring in his ears for the next quarter is this: "We are poised for success and profitability, and I have a sense of urgency in achieving this goal." Phil Husby was more interesting. See the third paragraph where he says that Zip and Jaz profits increased but that the improvements didn't make it to the bottom line "because of increased spending an other charges related to the Clik, ZipCD, and other product platforms were managing." Huh? Unless he was referring to software, there are no other product platforms. The increased spending can only mean development costs on a new product. Husby also noted that Iomega has increasing margins, increasing positive cash flow, decreasing SG&A and R&D, and decreasing cash conversion days. All healthy signs. Conely was interesting in setting the target of a 50% reduction in Zip manufacturing costs by the end of 2000. Even better was his analysis of the quality improvements that Iomega has made in the last 18 months. Jerry Block, Director of Enterprise Marketing, was next, and he was bragging about enterprise wins. Howeever, the American Airlines "win" was also won in the second quarter conference call, message 23722. On a more positive note, if Iomega continues making sales into univerity systems the size of USC, the ripple effects could be huge. Students will use Zip disks and they'll buy Zip drives in their home systems. Tremendous potential leverage. Keep selling the education market Iomega! David Henry was not too inspiring on 4th quarter marketing, but what he had to say on Clik was fascinating: "And I gues the other thing that I'd mention is that MP3 and Clik will--it's certainly an area of extreme interest and involvement right now." That comment, where he cut himself off before he said too much, made me hopeful that we'll get something in the music player side. Please, please let it be a Clik version of the Creative Nomad. What they didn't say: After all the talk in 2Q99 about ASIC shortages for Zip, Conely didn't really say anything about them. He only said, "we expect to have all of the component supplies we need for Q4." Sorry, but that's like Wade Olsen saying of Clik availability, "we are very satisfied with ability to meet our OEM customers's needs." Yes, but do they have needs? Remember David Dunn's words: "We are poised for success and profitability, and I have a sense of urgency in achieving this goal." Poised too, VinOrdinaire