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

To: sheila rothstein who wrote (8575)	3/28/1999 5:33:00 PM
From: Ken Pomaranski	Read Replies (1) \| Respond to of 10072

<< Ken, I think that Clik will be the surprise product of '99. It will not only be included in digital cameras but in many other products. >> I'll believe it when I see it. It's a matter of numbers though. What you need to do is work backwards. How much revenue is required to be more than a drop in the bucket? I'll say 200m per quarter. This will put Iomega in the highlife again. 800m annual. Say 1/2 drives & 1/2 disks (like the ZIP model) = at $100 ASP for drives, $10 ASP for disks, this is: 4 million drives & 40 million (!) disks. Don't forget ZIP / JAZ revenue will likely continue to slide... The entire digital camera market in 2000 is 4 million units. When it comes to other devices, don't hold your breath. You can get a 8Mbyte flash card as big as your thumbnail RIGHT NOW. The interface costs $2 to integrate into a device. So there is other competition. In fact, someone showed me their digital cam yesterday. Stores 192 pictures on a 8Mbyte flash card. This is what the low end market will look like in the future. Again, the card was as big as my thumbnail. dream on guys!! kp PS: What alarms me is that I never see any real data backing up these bullish dreams.

To: sheila rothstein who wrote (8575)	3/28/1999 5:34:00 PM
From: Senthil Sankarappan	Read Replies (1) \| Respond to of 10072

Let me add few more cents. Who said that market values companies purely based on earnings only? How much do these internet GOD companies make? It is all market perception of future earnings. So, far IOM has not convinced WallSt that their future is rock solid. If they do that eventually, the stock price can go up more than their earnings going up. i.e the P/E can keep going up. IOM just has to convince WallSt that they are the market leader in this removable drive segment and they will be the leader even after 10 years. That's all. This has not happened so far but could happen if at all IOM brings the Zip drive prices closer to floppy drive prices. Finally, i still think IOM controls its destiny and it is their game to lose. It is purely the management and their execution which is going to decide them as a winner or a loser. Good Luck to all -senthil