Iomega crashes down

Iomega crashes down
Tom Foremski
High flying Iomega came crashing to earth yesterday, warning that it will report a loss in its first quarter of between $10m to $25m.
The maker of the popular 100 MByte Zip and Jaz drives blamed the loss on slowing International sales. Wall Street analysts had expected profits of about nine cents per share. Iomega is planning to spend more than $100m in promotional programs aimed at trying to boost sales.
“Our shipments this quarter in all regions are generally lower than we anticipated, particularly in our international after-market business,” said Kim Edwards, Iomega president and CEO. “The shortfall in sales, combined with over $20m in incremental marketing expenses, appear to be the main factors contributing to our expected loss.”
Investors dumped nearly 23 million Iomega shares on Monday with its share price falling by more than 17 per cent.

Leave a Reply

Your email address will not be published. Required fields are marked *