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

To: RetiredNow who wrote (53021)	4/18/1998 4:34:00 PM
From: Herb Fuller	Respond to of 58324

Mindmelt , Re:>>>Herb, why do you think IOM experienced a 25% decrease in revenues vs the 9% decrease of the prior year? I'd be interested to know. <<< mindmelt , Iomega's product mix is changing at a very rapid pace from a consumer product to a OEM product . This last quarter was a first for Iomega to be exposed to the high ups and downs of the OEM cycle . This will be the pattern that we can expect in the future with Iomega . In their report Iomega said that Jan 98 was a bummer . In years past Iomega didn't have this to contend with . This to me explains the " 25% decrease in revenues vs the 9% decrease of the prior year " Good trading to you , Herb

To: RetiredNow who wrote (53021)	4/18/1998 5:19:00 PM
From: Rational	Respond to of 58324

Mindmeld: Excellent exposition. However, the revenue stream is based on the current product mix. The expected future revenue stream from new products (Clik! and others not disclosed by IOM) have to be accounted for. You are right that IOM would be a declining company if it were to abandon the new product innovations. New product innovations cannot always be made on time to make up for the declining revenues from existing products. The stock price is based on expected future cash flows; not historical cash flows. I feel many investors are going dizzy with the fall in the revenue this quarter and so the price has dropped dramatically (you may even be able to cover your short at a profit). But, to claim that IOM is in a declining path based on a dip in revenue in one quarter will be wrong (IMHO) because of the expected future incremental cash flows from the new products that have not been launched yet. Sankar Herb: Incidentally, the text books Mindmeld and I are referring to are very current and worth reading; they are an open discourse of finance, challenging readers to not get fixated with formulas in valuation. Mindmeld sounded more firm in his claim about the formulas than the books ever do. The field of finance is challenging because you have to apply your judgement and not simply get hooked on to a formula.