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


To: jwk who wrote (49805)3/12/1998 10:07:00 AM
From: Michael Coley  Read Replies (1) | Respond to of 58324
 
RE: Projections.

The biggest factor in PK's argument is the change in margins, though. KE was clear in the conference call that he expected margins in the high 20's to low 30's. There's not much basis to expect more.

How can margins be in the high 20's and low 30's (compared to 33.4% in Q4)? As volumes increase and costs decrease, the margins should go up. I think he was just giving a veiled reference to upcoming price reductions. I've factored them into my model in Q3 (and a little in Q1 after the Jaz1 reduction).

- Michael Coley
- wwol.com