Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: sheila rothstein who wrote (624)	7/19/1998 2:39:00 PM
From: Rocky Reid	Respond to of 10072

>If this is NOT a company working on a turn around then what is it ?????chopped liver. SR<< Sheila, Iomega's bead and butter are Zips. And the emphasis now on OEM drives has put a negative gross margin on the largest percentage of its bread and butter. This is a horrendous situation. Iomega is losing money on its now largest percentage sales product- OEM Zip drives. Jaz is rapidly becoming the victim of a SparQ/CD burner onslaught. Vapor! will succeed about as well as Buz has-- that is, it will not succeed. The best that can be hoped for is that Vapor! will help in recouping some of the losses that Jaz is suffering. But it will not even succeed in this. Iomega is going through a transition down to where it belongs-- with a market cap at about $750 Million. This will give an IOM stock price of about $2.80 by the end of next year.

To: sheila rothstein who wrote (624)	7/20/1998 1:12:00 PM
From: Mel Boreham	Respond to of 10072

Hi Shiela, Looks like you gleaned some good points from the CC. I too see that IOM has an excellent chance to put the past seven months behind them and start their comeback. I especially was encouraged by the new attitude and openness of the IOM board and in taking their salary in IOM stock! Now that instills confidence like nothing else. The new ATAPI 2 Zip Drive will add to the bottom line in that is uses less chips and overall cost is $8 less per unit. That alone could put IOM into positive cash flow status. Clik! units have been placed with 1,000 users and good comments have been forthcoming... so I am beginning to feel that the Clik! may be the big surprise of 1998. We won't see much effect on the bottom line this year, but it could add significantly to earnings by this time next year. Jaz 1 and 2 are in trouble at least for the short term. By bringing out Jaz 2, IOM confused the customer and this will take a while to resolve itself. Price points of its main competition, The Sparq from Syquest, is also having a big effect by cutting into Jaz sales. The Sparq may not turn out to be a lasting threat, as Syquest is bleeding red ink and could go out of business... selling their drives at a loss can only go on so long. And the dilution of their stock also hurts this company. Glad to see you back on the thread. Sounds like you are having a nice vacation. Mel