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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: Rocky Reid who wrote (213)	6/29/1998 10:55:00 AM
From: Bill Lin	Read Replies (1) \| Respond to of 10072

Oh, I just reread the annoucement. The $21mm is for next qtr, since it closes July 1. So, that means that they got the loan covenents renegotiated. Flash memory CANNOT go below $100/40mb next year or the year after. Not unless TSM gets their 0.18um line online. There just isn't enough shrink, volume or profit in selling for that low a price. The volume sales of Flash, like I posted before, is 1mb chips for cell phones. Going up 80x in size doesn't provide economy of scale. Instead its the reverse situation. The problem is that Digital Cameras won't sell more than 1 million units next year, even with clik! inside. The math says $350mm in revenue (TOPS) for clik!. Although that will turn around IOM initially, there is STILL a big price sensistivity in US consumers. clik! still looks great from a product perspective. Right now... IOM has problems more significant than clik! However, Sierk is doing a LOT of what I thought he SHOULD do (previously posted). So, not all is negative. BL