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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: steve goff who wrote (41199)	12/22/1997 12:12:00 AM
From: Frank Drumond	Respond to of 58324

This is a quote from Rosencranz's comments about Zips selling at a loss. Steve, thanks for letting us now that the transcript was up. >Iomega consistently continues to bring the cost structure of the product down. We anticipate that they will be selling Zip drives through the OEM channel at less than $50 in 1998, which will represent a 10 or $12 loss to the company. Anything they can do at the ridiculous margin on retail is a party given the way their cost structure is.< BO was raising a stink about OEM drives selling at a loss. The analysts were SPECULATING that Iomega would sell drives at a loss in '98. It then follows that the analysts have this in their forecasts for Iomega so Iomega has a good chance at beating their estimates. Given my analysis of the Iomega drive I think that they can make this price without a loss.