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

To: Ken Pomaranski who wrote (8652)	3/30/1999 6:15:00 PM
From: BBG	Read Replies (1) \| Respond to of 10072

>>>I'll post it soon. I'll have my first day off in a month on Friday<<< Ken... If you spend your 1st day in a month analyzing IOM's future... I'll have to seriously question your sanity... Take the day off... we can wait... Ciao BBG

To: Ken Pomaranski who wrote (8652)	3/31/1999 8:52:00 AM
From: Michael Coley	Read Replies (3) \| Respond to of 10072

Before I post my revenue and earnings analysis and estimates, let me give a few reasons why I'm not expecting much for Q1: * The computer industry in general has been a little slower than expected for Q1. Several big companies have warned or disappointed. * Supply constraints on Zip250 disks, Clik! drives, and Clik! disks. These are high-margin products which are being constrained. * Price cut on retail Zip100 drives. I'm expecting that of the $20 cut, Iomega will take a $10 hit per retail drive (with the rest being taken by the supply chain and/or offset by cost reductions). I'm anticipating about 900,000 retail drives (and 1.65 million OEM drives which won't be impacted). That is about a $9 million impact. * Continuing or escalating losses on Ditto. Margins will improve after Ditto is sold. * Considerably lower backlog. Iomega experienced good retail sales in Q1 98 due to a large backlog at the end of Q4 97. That's not there this time. I anticipate an annual revenue decline in Q1 99 (but not for any other quarter or the year). There are many positives for Iomega, but they're all in the future. I see no reason to be optimistic about Q1, except to say that all of this is probably already priced into the stock and that it's an incredible buying opportunity. - Michael Coley - bible-reading.com