Feeds

Iomega profits way up – hurrah!

But sales continue to fall - sob!

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Troubled storage company Iomega saw a major hike in profits for its first quarter of fiscal 2000, making the period the second most profitable in Iomega's 20-year history. Falling sales, however, mean the company can't afford to assume its problems are over. For the three months to 26 March, Iomega recorded profits of $31.7 million. Add in a hefty one-off piece of fund management - the company shuffled $20.1 million out of its 'money for the taxman' pile - and earnings reach $51.8 million or 19 cents a share - rather more than the four cents a share Wall Street was expecting. That compares to the $569,000 it made in the same period, last year, and the $21.4 million it made in the previous quarter, Q4 1999. It all sounds very healthy, but the Iomega's profitability, like that of the previous quarter, came from reduced operating costs exceeding declines in sales of Iomega's main product lines - and there's no sign the downward trend is changing. Q1 2000 saw 800,000 fewer Zip disk shipments than Q1 1999, and Zip drive sales were down by 500,000 units. It sold 43,000 fewer Jaz drives, though Jaz disk sales were up by 21,000 units. Overall, Q1 revenue reached $344.9 million, a fall of $41.3 million, or 10.7 per cent, from Q1 1999's $386.2 million. Iomega has since launched a major, "multi-million dollar" ad campaign to promote its Zip drive, but since the bulk of the sales shortfall is down to OEMs declining to buy the device, perhaps Iomega is looking in the wrong direction. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.