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

To: Linda Pearson who wrote (56435)	6/18/1998 6:00:00 PM
From: Ben Antanaitis	Read Replies (2) \| Respond to of 58324

From Breifing.com: IOMEGA (IOM) 6 5/16 -1/16: Some decidedly bad news after the close. No way to put a positive spin on these headlines: Q2 loss will be $0.10 to $0.13 per share rather than the expected $0.02 loss; will take $5 to $10 million charge; negative cash flow in the second quarter will be in the range of $60 to $70 million while revenue will be even with the first quarter; these figures could put them in violation of their covenants with their lenders, with whom they are in talks; will cut workforce of 5,000 by 600 to 700 employees; will report a full year loss compared to Wall Street expectations of $0.03 profit. In fact, the CEO says in the press release that IOM is disappointed with the financial performance this quarter, but as all companies do, they have a plan for the future. They are transitioning to the OEM business. This makes sense, as more and more PC's come with removable disk drives. OEM business will account for about 50% of business in the first half of this year, according to IOM, and is increasing. This means, however, that they are exiting about half of their current business. This very well may be a sound decision, but it also signals a difficult transition period ahead at a time when the company is struggling not only to remain profitable but to remain sufficiently liquid to finance the transition. The stock has been trending lower and is now something of a turnaround speculative play. Ben A.