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

To: Michael M who wrote (52863)	4/17/1998 5:05:00 AM
From: Dale Stempson	Respond to of 58324

Re: >>> Dale.....see your point when looking at the fine print.....but, where did the $9+MM tax provision come from? IOM press release claimed net loss of $18MM (in line with pre-announcement). Given the scrutiny they're under, doesn't seem likely that they would invite attention to a bogus number ($18MM). In your opinion, will the street see the loss as $18MM or a worse than worst case, $28MM. <<< Michael, IMO, the $18MM number is not bogus and will not be viewed by the street as something higher because of the Tax Benefit. The way Iomega reported their loss was common and correct. Taxes are simply not something all investors take into consideration in their "what if" scenarios. As you can see, they are a major factor and need to be taken into account. To understand the Tax Benefit, you might look at this hypothetical situation: Using today's Q1 earnings report and assuming Iomega were to break even in both Q2 and Q3, and then post Income Before Taxes of $28mm in Q4, the year's results would look like this: Income Before Taxes Q1 ($28MM), Q2 $0, Q3 $0, Q4 $28MM , 1998 Total $0 Income Taxes Q1 $10MM , Q2 $0, Q3 $0, Q4 ($10MM), 1998 Total $0 Net Income Q1 ($18MM), Q2 $0, Q3 $0, Q4 $18MM , 1998 Total $0 In other words, Tax Benefits are used to offset Tax Provisions. Hope this helps. Regards - Dale