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

To: jwk who wrote (43122)	1/11/1998 6:40:00 PM
From: Brendan2012	Read Replies (1) \| Respond to of 58324

>>--Will the Street punish them if it looks like they can't move deferred revenues to the bottom line at some point? hmmmm....... suppose so, which is why I see it likely that they might increase R&D and/or choose to prepay some up-coming expenses. I think a Clik! ramp charge is possible.<< It's best to record expenses as soon as possible and defer revenues until as late as possible to get the maximum tax benefit. Of course, there's only a certain amount of this they're allowed to do, and it does lower quarterly earnings. OTOH, income reported to the IRS may be different from the income reported on the income statement since SEC and IRS rules may be different (I'm not sure). I doubt you'll ever see Iomega decide to be a little less conservative in the accounting since it's just bad business practice to pay any more taxes now than they have to. BTW, basically this is due to the time value of money--it's better to pay a certain amount later than the same amount now. I think we should be glad Iomega practices such conservative accounting practices. Brendan

To: jwk who wrote (43122)	1/11/1998 8:11:00 PM
From: Reseller	Read Replies (1) \| Respond to of 58324

Jack, >>Will the Street punish them if it looks like they can't move deferred revenues to the bottom line at some point? hmmmm....... << I'm not talking about deferred income here I'm talking about performance. >> At some point the streets going to mark them down as not being able to put it on the bottom line.<< We wouldn't want to set our expectations too high here but if ever there was an opportunity to do well for the company and the people that own it, then this is the quarter to do it. With what they had going into Q4 I'm expecting them to capitalize and maximize the opportunity for both the company and the shareholder. Which would be sales of $696,455 that would be a 14% increase over Q3 and a deposit on their back orders of 200,000. So I'll give em 20 mil ( sales ) or so to stash away. The bears are always howling about one thing or another anyways. Regards Reseller