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

To: Herb Fuller who wrote (8704)	3/31/1999 7:28:00 PM
From: Michael Coley	Respond to of 10072

RE: Earnings vs. Cash Flow. Herb, >> Please factor in the reported $40 million that Iomega used to pay off their short term debt today. Iomega could not have had a bad 1st quarter if they were able to spare the cash to pay off this debt unless they reduced their inventories and I doubt that. << Earnings and cash flow can be very different. Recall last quarter when they had a $100 million positive cash flow, but only a $19 million dollar profit. Also, their cash position is fairly healthy so they could have dipped into it a little, anticipating positive earnings and cash flow in the quarters to come. There's no way that the entire $40 million could have come from Q1 earnings. $40 million is 0.14 EPS, double Q4. It has to be from an improved balance sheet--better inventory turns, extended payables, improved DSO, etc. - Michael Coley - bible-reading.com