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

To: John P. Henrie who wrote (9725)	5/9/1999 10:46:00 AM
From: Ken Pomaranski	Read Replies (1) \| Respond to of 10072

<< I'll bet you a cyber sprite that Jodie's statement -- clik! will account for 10% of annual revenue -- will turn out to be a little low. >> Sounds good. But let's examine this further. Let's say that it does end up adding 10% to revenues. What does this mean to the bottom line? Assuming about 450m revenues per quarter, CLIK! would be providing 45m of that. At 20% profit margin (very generous, since Iomega is having difficulty sustaining profits on all other products except for disks), this would amount to 9m in profit per quarter. This is $.02 per share per quarter. A drop in the bucket. This may not even make up for the shortfalls in Jaz or other product lines. Again, it will come down to ZIP, and the resulting margin increases due to product mix between ZIP100 & ZIP250. I'll be watching with interest. But I still think the ultimate driver is the macro factors of the computer industry: Lower & lower costs. This will (and has been) squeezing suppliers. I keep thinking that the only way out of this is for Iomega to move farther up the value chain by offering some kind of consumer device. An Iomega branded digital camera would be interesting, if it could support the cost structures of including a very expensive drive with each camera. kp

To: John P. Henrie who wrote (9725)	5/9/1999 11:05:00 AM
From: Ken Pomaranski	Read Replies (1) \| Respond to of 10072

OT: I normally don't like posting stock picks on this thread, but here it goes anyway: EXDS. I've been buying shares over the last few months as it reaches support. I met with management, toured one of their data centers, studied the macro trends, etc.. Looks great! Unfortunately (or sometimes fortunately) it is considered an 'internet stock', so it is prone to 20% moves in either direction (great for day trading the covered calls!). However, it really isn't one. It is just one of the beneficiaries of the internet macro-trend. Just one man's opinion! Please do your own research... kp