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: go4it who wrote (6392)	1/21/1999 7:29:00 PM
From: HardMoney	Read Replies (1) \| Respond to of 10072

This hit the wires at 6:31 PM I wouldn't be surprised to see upgrades, reiterations and maybe even initiation(s) of coverage tomm. Just MHO. Frank ******************************************************************** News Alert from Dow Jones Online News via Quote.com Topic: (NYSE:IOM) , Quote.com News Item #8839126 Headline: Zip Drive Maker Iomega's Earnings Weren't As Bad As Some Had Feared ====================================================================== NEW YORK -(Dow Jones)- Iomega Corp., a onetime computer-industry highflier trying to rebound from recent losses, reported a decline in fourth-quarter earnings Thursday but still edged analysts forecasts. The company also announced a series of organizational changes in the hopes of improving profits. The Roy, Utah-based company, best known for its portable Zip and Jaz disk drives, said net income came to $19 million, or seven cents a share on a fully diluted basis, compared with $36.1 million, or 13 cents a diluted share, a year earlier. Sales increased 8% to $501.3 million. The mean estimate of six analysts surveyed by First Call was for net income of five cents per share. Iomega said it expects to report breakeven results in the first quarter but warned that seasonal factors and problems in ramping up new products could result in a small profit or loss. Fourth-quarter gross profit increased to $139 million, or 28% of sales, up from $88 million, or 22% of sales, in the third quarter. Gross margin in the year-ago quarter was 33%. The firm cited cost reductions in both the Zip and Jaz product lines and initial sales of Iomega's new Zip USB and Zip 250 drives. Iomega (IOM) said latest results include Americas revenue of $313 million, European revenue of $154 million, and Asia Pacific revenue of $34 million. Revenue for the latest quarter included disk revenue of $206 million, drive revenue of $287 million and other miscellaneous revenue of $8 million. Total Zip product revenue for the fourth quarter was $353 million, while Jaz product revenue totaled $123 million. Iomega said both Zip and the higher-capacity Jaz disk unit shipments rose 47% in the period from a year earlier. While shipments of Zip drive units rose 26%, Jaz drive unit shipments fell 7% from the 1997 quarter. In a separate announcement, Iomega said it is moving from three decentralized units to a structure centered on business functions, such as sales and marketing, product development, manufacturing and corporate development and strategy. Iomega added that it doesn't expect to record any charges in the first quarter from this realignment. Ted Briscoe, president of Iomega's personal storage unit, and Fred Forsyth, president of its professional products unit, resigned as a result of the restructuring but agreed to remain on the job until the company has completed its realignment. The company also formed a new customer service and applications group, combining Iomega's existing customer service organization with a new group of applications engineers. Roxie Craycraft, Iomega's vice president, customer satisfaction and quality, will be acting vice president of the new group. Iomega named James Kelly senior vice president, product development and chief technology officer. Kelly was president, mobile storage division. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved.