Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: sheila rothstein who wrote (42314)	1/4/1998 3:50:00 PM
From: Gary Wisdom	Read Replies (3) \| Respond to of 58324

Sheila, re: # of drives sold and whisper number. 1. They announced on or about December 18 that they've shipped 11 MM drives. Remember that when they announce these figures is arbitrary. Remember I emailed you about 3 days before the announcement that they were going to announce the next day. Well, you saw that it took another 2 days of meetings for them to do it. They shipped 11 MM well before Dec 18 but Iomega tries to back out 30 days worth of retail inventory to make their figures fair (unlike other companies)and more reflective of actual units sold. Plus, they do strategize before making these announcements from what I hear. All that said, they said they will not be making any more million drive announcements any more. And I agree. Why tell the competition how sales are with such precision. It gives Iomega absolutely no benefit to do so. 2. Regarding whisper numbers, haven't heard of any. But, you might use H.D. Brous's figures as a high end number for Iomega as they are usually quite sanguine (and rightfully so) about the quarters. Sorry, but I can't comment any further at this time. My head is soaking. <ggg> P.S. Welcome back. Did you get any other family members to invest?

To: sheila rothstein who wrote (42314)	1/4/1998 4:17:00 PM
From: Dale Stempson	Read Replies (1) \| Respond to of 58324

For the helluvit, I completed assembling and revising my personal model for IOM earnings for the quarter, without all the specific number detail, here's my forecast: Total Revenues: $625 million Net Margin Dollars: $47 million Net Margin Percentage: 7.5% EPS: $0.17 Major contributing factors include: * Overall Zip unit volume is still increasing significantly. It was up 26% 3rd qtr over the 2nd qtr with OEM Zips up more than 60%. * ZipPlus and notebook Zips are shipping. * Shipping ATAPI to OEMs has freed up IDE chip constraints and earns a better profit margin. * Last quarter's problems and shutdowns cost Iomega between $50 and $100 million is sales for the quarter. This will not repeat. * Zip margins improving due to higher disk volumes. * Zip margins improving due to lower drive costs. * 3rd qtr backlog grew to a record 379 million. Retail backlog grew proportionately larger. * Record number of Zips shipped in Sept. Production level increased from Sept entering 4th qtr. 4th quarter started with continued strong sell-through. A lot of Zips shipped in Sept did not reflect in last quarter's revenue. Regards - Dale