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

To: Jim Welsh who wrote (573)	7/16/1998 4:52:00 PM
From: Ken Pomaranski	Read Replies (1) \| Respond to of 10072

'cash flow' is a RATE. It is the rate at which they are burning cash per quarter. $41m cash flow negative means that they they spent $41m more than they took in that quarter (roughly). So, if IOM has $68m in cash, they will burn it in less than two quarters unless they tap into some method of financing. A company that is 'cash flow negative' is unstable because they will EVENTUALLY go out of business if the situation isn't rectified. CHANGE IS REQUIRED!!! IMO: If IOM keeps doing more of the same they are in trouble. You should NOT invest in a cash flow negative company unless you are SURE they can turn things around. In other words, status quo will lead to bankruptcy... Hope that helps!! kp

To: Jim Welsh who wrote (573)	7/16/1998 4:53:00 PM
From: Rocky Reid	Respond to of 10072

>> Thus what is the big deal about being cash flow negative?<< Think of it this way- You start out with $10,000 in your checking account. You have expenses during the month of $7000 and income of $5000. So, you lose $2000 total during the month, and your checking account now reads as $8000. If you keep doing this for long, you have to either borrow lots of money to stay afloat (as Iomega is doing right now), or start pimping yourself on The Street for extra money (i.e. diluting more stock shares like Syquest does).