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

To: Michael M who wrote (53255)	4/21/1998 1:29:00 PM
From: KM	Respond to of 58324

I covered. Was still longer than short. I'm happy for all of you (and me).

To: Michael M who wrote (53255)	4/21/1998 1:30:00 PM
From: John Solder	Respond to of 58324

Huge volume ! Run shorty !

To: Michael M who wrote (53255)	4/21/1998 1:39:00 PM
From: Dale Stempson	Read Replies (1) \| Respond to of 58324

Re: >>> Are the short people riding it up or bailing? <<< Iomega needs OEM consumers for Clik! more than OEM manufacturers. Today's agreement seems logical in that it extends the existing Zip relationship. NEC is wise in locking-in a piece of both Zip and Clik! If and when the products become total industry standards, NEC will be there. As for now, today's news means little for IOM, IMO. I suspect we'll see the stock drift back down very quickly, if not before the end of the day. Just tradin' for (hopefully) fun and profit. Regards - Dale

To: Michael M who wrote (53255)	4/21/1998 1:44:00 PM
From: Kevin Linder	Read Replies (1) \| Respond to of 58324

If backward compatability was so important......................... My cassette player would accept 8-tracks..... My 8mm Camcorder could still use VHS tapes........... New stereos would come with phonographs........................ The problem of backward compatability and the "new standard" to replace 3.5 floppies is misunderstood and overvalued. International Data Group predicts PC unit shipments are going to reach 93 million this year. Iomega, at best, can produce 12-15 million Zip drives. Licensees (MCI and NEC can produce about another 125-150,000 units per month.) Iomega cannot be a standard this year because of production shortfalls. If you think I am bashing Iomega and being bearish run the math on Syquest trying to produce 1-2 million Sparq drives per month. There is no words to describe how ugly that situation would be. This may be why Iomega is looking for a production/operations oriented CEO. However, Iomega does not have the cash to multiple their production facilities by a factor of 7-8. Neither would the licensees increase production in an environment where there is not the current impetus to replace te 3.5 floppies. There is an answer. SEG and WDC have been laying off people and closing plants. Both companies have experience at production capabilities and use much of the same processes. Hopefully management at any of these three companies will notice the capabilities. Kevin Linder