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

To: D.J.Smyth who wrote (6563)	1/22/1999 2:41:00 PM
From: Senthil Sankarappan	Read Replies (2) \| Respond to of 10072

Darrel, I have been an IOM bull for long time but i am getting tired of it. But your track record in IOM is the best one i have seen and so let me ask you some questions: 1) Why this $16 target esp when the company is not even confident of the profitability. If the company is not sure of profit even after 21 Mil Zip drives, when will it be confident? i.e what's the point in selling these many millions of drives? 2) When do you think the company will start to grow its revenue? Is it possible in Q1 esp when compared to last years lousy Qtr? 3) what do you think about their inventory pile of 8-10 weeks i.e over 2 months of inventory meaning over 2 Mil drives. Why did this happen esp when they are touting about Scott Flaig/Oracle/asset management etc etc. 4) Don't you feel that IMN is getting some momentum esp with CPQ going with them in many models. They might lose money but that won't kill them like SYQT. Thanks in advance. -senthil

To: D.J.Smyth who wrote (6563)	1/22/1999 3:17:00 PM
From: rll	Read Replies (3) \| Respond to of 10072

"Thursday, yesterday. <<a lot has changed>> for who? " Ok, you got me. I should have said prior to the earnings report yesterday. IMO, a lot has changed for investors. 1. There are now fewer reasons to believe that IOM can achieve the current consensus estimates for 1999. 2. Guiding analysts down to a flat 1Q99. 3. Revenues decreased by $46M over 8% of 4Q97. Even with 23 million drive base and 47% improvement in disk sales over 4Q97. 4. Drive sales growth decreasing year to year. Jaz drive sales actually decreased 7% over 4Q97. 5. IMO, the functional organization change is too complex for IOM at this critical time. It is taking too long to implement and they are losing valuable assets. JG said that the organization should be in place in 2,3, or 4 months. That's simply too long. 6. Briscoe bought 200,000 shares last fall. Now he's decided to resign. There's no way to paint that any different. Yea, I heard JG state that he'll be a consultant for a year. It's not the same as being there every day and making on the spot decisions. 7. Clik! is too late to market to get strong support with OEM's. Flash memory has come down considerably in price and is still decreasing as desnsity increases. Clik! may have a separate market of transferring data from flash unless flash memory becomes equivalent in price. Solid state memory has too many advantages over a moving disk for portable applications.