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

To: David Colvin who wrote (9258)	4/20/1999 11:01:00 AM
From: David Colvin	Read Replies (1) \| Respond to of 10072

I own Intel and just got their 1998 annual report in the mail. Just for fun, I plugged Intel's 1997 performance numbers into my spreadsheet to see, percentage wise, how they compare to Iomega in areas like SG&A, R&D, net profits, etc. Here are both company's numbers side by side: . . . . . . . . . . . . . . . . . . . . . . . Iomega Intel . . . . . . . . . . . . . . . . . . . . . . . 1997 1997 Revenue $ (m) . . . . . . . . . . . . . . . . 1,740.0 25,070.0 Gross Margin $ (m) . . . . . . . . . . . . . 547.7 10,659.0 Gross Margin % . . . . . . . . . . . . . . . 31.5% 42.5% SG&A $ (m) . . . . . . . . . . . . . . . . . 291.9 2,891.0 SG&A %. . . . . . . . . . . . . . . . . . . . 16.8% 11.5% R&D $ (m). . . . . . . . . . . . . . . . . . . 78.0 2,347.0 R&D % . . . . . . . . . . . . . . . . . . . . . 4.5% 9.4% Net Operating Margin $ (m). . . . . . . . . . . 118.0 6,945.0 Net Operating Margin % . . . . . . . . . . . . . 6.8% 27.7% Net Operating EPS $ . . . . . . . . . . . . . . 0.42 1.93 Special Charges $ (m) . . . . . . . . . . . . . (2.7) 0.0 Special Charges EPS. . . . . . . . . . . . . . (0.01) 0.00 Post-Charge Net Margin %. . . . . . . . . . . . 6.6% 27.7% Post-Charge EPS $. . . . . . . . . . . . . . . . 0.41 1.93 Act Diluted Shares (m) . . . . . . . . . . . . . 282.4 3,590.0 I know, I know, different companies, different market segments! I still think the comparison's are interesting . For example look at how small Intel's percentage of revenues is for SG&A. On the other hand, look at how large a percentage Intel spends on R&D. Also, look at the huge net margins for Intel....in a market segment where they literally dominate the business (like Iomega does). Maybe these percentages for Iomega are perfectly normal for their type of business while Intel's percentages are also perfectly normal for their type of business, who knows? Any accountants or other business guru's out there have any thoughts about what is "normal" and what is "unusual" for different types of market segments? One example I can think of is grocery stores....they operate on extremely thin profit margins (like maybe 3%) and depend on large sales volumes for reasonable profitability. Dave