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

To: Cogito who wrote (5116)	12/14/1998 2:47:00 AM
From: Dale Stempson	Read Replies (1) \| Respond to of 10072

Looking at the short term, I like IOM here. SyQuest's demise should help Jaz sales. SparQ had a clear impact during the first nine months of 1998 as indicated by Jaz drive unit shipments per quarter falling from 213 to 160 to 142 thousand. Any resulting increase in Jaz sales this quarter could be even more significant given that gross margins on Jaz products have been increasing. The reduction in operating expenses last quarter was much better than planned and is expected to continue. Inventory has been slashed, turns are increasing, and supply chain management is improving. Quality is up. A return to profitability, a positive cash flow and better gross margins were predicted early in this quarter. Management also announced that cost cutting is expected to exceed price cuts. This would appear to be a win-win situation in that the price cuts should also serve to increase unit sales volume. Holiday sales and the introduction of various new products will undoubtedly add to the bottom line. I'd expect that the season also prompts greater and more profitable non-OEM Zip sales. Solid inventory in the channel coupled with strong sales at the end of last quarter indicates to me that the stage is set for a good Q4. Regards - Dale