To: D.J.Smyth who wrote (8811 ) 4/7/1999 2:20:00 PM From: Rocky Reid Respond to of 10072
>>What happens to your projections when IOM announces clik! deal with OEM of significance? << I don't see Flop! having any positive earnings significance whatsoever, regardless of any "significant" OEM deal or not. In fact, I did a little guesstimate math awhile ago, and I am on record as saying that Flop! will contribute less than $30 Million in revenues to Iomega during its entire life span. Of course, knowing exactly how much Iomega actually sees for each Flop! drive and disk retail sale would help, and what certainly would help is knowing the Profit Margins on the Flop! line. Flop! Margins are unknown, but don't be be too suprised if they are negative. And as for people buying Flop! disk after disk, don't count on it. A favorite advantage that consumers appreciate about digital photography is the fact that one doesn't have to buy roll after roll of film-- Basically, one large CompactFlash card purchase (or one or two Flop! disks) and you're done...as long as you own that camera. Plus, the "delete" key is a very much used feature on digital cameras to make room over and over and over again. Saving good pictures to your hard drive or better yet, CD-R is an extremely economical way of storing these files. Don't count on people keeping a portfolio if Flop! disks that could've been re-used over and over and over (and over) again. It just doesn't make sense to think that most people are that dumb as not figure out the cheapest way to utilize the disks. I keep wondering why Iomaniacs feel that FLop! is the savior when Iomega has had a monster of a time trying to get companies to deal with Flop! at all, period. And what does Iomega have to give away in order to get ANYONE to use a Flop! built-in? Remember, there are currently NO products that use Flop! All there are presently are rumors and pictures on a web page by an unknown Korean startup company. Even Agfa has been VERY non-specific about any Flop! deals. Iomega has no leverage with ANYONE. And Margins and profits suffer because of it.