Feeds

Iomega returns to profitability, begins reorganisation

Two senior execs call it quits as storage firm announces it made money in Q4 98.

  • alert
  • submit to reddit

SANS - Survey on application security programs

Troubled removable storage specialist Iomega yesterday recorded its first profitable quarter of 1998. The company posted profits of $19 million, equivalent to 7c a share, up on the 5c a share Wall Street had expected Iomega to file. Still, the Q4 98 figure 90 per cent down on the $36.1 million profit the company made in the same period last year. Iomega CEO Jodie Glore, who took over that role last October, also announced a company-wide reorganisation that will merge the company's separate professional and personal storage divisions. That decision prompted the resignation of Fred Forsyth and Ted Briscoe, presidents of those divisions, respectively. The reorganisation may involve the loss of further jobs -- don't rule them out, warned a spokesman -- but the company said it does not expect to take a charge for the move. Whether the reorganisation will be enough to improve the company's outlook remains to be seen. In many ways, it has followed the example of its erstwhile arch-rival, SyQuest, the assets of which Iomega announced last week it intends to buy. In the late 80s, SyQuest became the market leader in removable storage and, happy with that, chose to rest on its laurels. That allowed it to miss what Iomega was up to, and was largely taken by surprise when Iomega launched its 100MB Zip drive and later the 1GB Jaz. The high demand for those products effectively hit SyQuest hard, which lost money hand over fist. It too was forced to reorganise to deal with its much reduced circumstances, but even that wasn't enough and the company filed for bankruptcy in November 1998. Iomega has the advantage that it has a much wider market profile than SyQuest ever had, and that PC vendors continue to want to bundle Zip drives. Iomega also recently announced, at long last, an upgraded version of Zip and finally, after three years of 'it'll be here next year' messages, launched its Clik drive, aimed at the digital camera market. The technology it hopes to buy from what's left of SyQuest should help Iomega increase both the performance and the storage capacity of its products, allowing its drives to keep up with the increases in hard drive capacity, which have long left Jaz and Zip behind. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.