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

To: John P. Henrie who wrote (43780)	1/17/1998 7:00:00 PM
From: Joon Song	Read Replies (1) \| Respond to of 58324

Excellent post. One of the best I've read in a while. One thing I think might throw a wrench into what could be a very high EPS number is the possibility of a price reduction announcement. Prices on the Zip and Jaz have held firm for quite some time while prices on everything else have dropped significantly. It didn't make sense to reduce prices during the previous quarters with the shortages and all. But I think we're getting close to the next price reduction on both the Zip and the Jaz. If they make such an announcement along with the earnings release, they will provide price protection to the retailers and distributers and adjust the numbers for Q4 accordingly. But I would be happy either ways - big EPS number or EPS in line with estimates along with price reduction. Joon

To: John P. Henrie who wrote (43780)	1/18/1998 4:21:00 PM
From: RetiredNow	Respond to of 58324

Your thoughts on kitchen sink charges are in the ballpark, but not quite there. If they have taken a charge in 4Q96, it was for expenses they have already paid for. If a company is being conservative they will expense it all immediately. If they are being aggressive they will amortize the expenses if possible. However, a kithen sink charge, as you like to call it, is not an accrual of estimated future expenses unless they are probable and measurable and related to some unavoidable liability (legal contingencies). To sum up, there won't be any large accrual reversals in the current quarter that are out of the ordinary and not part of normal and continuing operations. If there are, then they would reduce expenses and it would be to our benefit anyway. So don't worry.