Iomega - Q1 2005 resultaten
Iomega Posts Wider Loss for 1Q As Sales of Zip Products Decline
SAN DIEGO (AP) -- Iomega Corp. on Thursday reported a wider loss and lower sales for the first quarter due to a dropoff in revenue from its core products.
The maker of Zip disk drives posted a loss of $5.9 million, or 11 cents per share, compared with a loss of $4.9 million, or 9 cents per share a year ago. The latest results included a $1.5 million nonrecurring benefit from a change in estimated accrued copyright royalties in Europe and restructuring charges of $200,000.
Sales fell to $72.9 million from $84.1 million.
The company the wider loss and lower sales reflects a 54 percent drop in revenue from its Zip product line of data storage products for PC users. Revenue did increase in the company's REV line of higher-capacity products and consumer storage products such as Mini USB flash and optical drives. The falloff in sales in higher-margin Zip products, as well as pricing pressure on the consumer storage products hurt Iomega's gross margin for the quarter.
"We are disappointed with the loss in the first quarter; however, we continued to make progress in transitioning the business from the legacy Zip product line to multiple hardware and software storage solutions for consumers, homes, and small businesses," said Werner Heid, president and chief executive.
SAN DIEGO (AP) -- Iomega Corp. on Thursday reported a wider loss and lower sales for the first quarter due to a dropoff in revenue from its core products.
The maker of Zip disk drives posted a loss of $5.9 million, or 11 cents per share, compared with a loss of $4.9 million, or 9 cents per share a year ago. The latest results included a $1.5 million nonrecurring benefit from a change in estimated accrued copyright royalties in Europe and restructuring charges of $200,000.
Sales fell to $72.9 million from $84.1 million.
The company the wider loss and lower sales reflects a 54 percent drop in revenue from its Zip product line of data storage products for PC users. Revenue did increase in the company's REV line of higher-capacity products and consumer storage products such as Mini USB flash and optical drives. The falloff in sales in higher-margin Zip products, as well as pricing pressure on the consumer storage products hurt Iomega's gross margin for the quarter.
"We are disappointed with the loss in the first quarter; however, we continued to make progress in transitioning the business from the legacy Zip product line to multiple hardware and software storage solutions for consumers, homes, and small businesses," said Werner Heid, president and chief executive.
posted at 1:48 p.m.
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