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

To: RKA who wrote (50587)	3/18/1998 11:50:00 PM
From: Michael Coley	Read Replies (1) \| Respond to of 58324

RE: Answer to Ad Campaign Questions. Wow, that's a lot of questions. ;) >> Have the quarterly earnings estimates been adjusted to compensate for $100 million 1998 marketing plan? << Yes. Most analysts lowered their EPS estimates after the ad campaign was announced. >> If so, has it been announced if these expenses will be written off equally each quarter? << Not equal. In the conference call, they said 15-20, 15-20, 25, and 40 in Q1 through Q4 respectively. >> Since the upcoming shortfall has been estimated at 10 to 25 million it would seem that if payment for this add campaign was deferred to another quarter it would allow IOM an opportunity to adjust their quarterly eps. << I don't expect to see them shifting expenses around to meet numbers. >> I would imagine the Super Bowl adds and production costs of much of the new advertising was incurred early in the campaign. Were any of these costs deducted last quarter? << In the conference call, Kim Edwards said that most of the expenses from the Superbowl ads were in Q4. >> Am I correct in assuming the cost of the 1998 marketing strategy will equate into a 40 cent annual charge for each share of IOM? << $100 million / 275 million shares = about 40 cents, so yes. That's what it will cost them for the advertising campaign. But Kim Edwards stated in the conference call that they were determined to do everything they could to keep it from affecting EPS. - Michael Coley - wwol.com