Files Form 10-Q with the SEC SAN DIEGO, May 9
/PRNewswire-FirstCall/ -- Iomega Corporation (NYSE:IOM) today
reported net revenue of $95.9 million and net income of $1.9
million, or $0.04 per diluted share, for the quarter ended March
30, 2008. In comparison, first quarter 2007 net revenue was $76.0
million with net income of $1.1 million, or $0.02 per diluted
share. Additional information about Iomega's first quarter
financial results is contained in our first quarter 10-Q, filed
today with the SEC. Cash, cash equivalents, long term cash and
temporary investments decreased $16.9 million from the end of
December 2007 due primarily to timing of working capital
requirements during the quarter. During April, we generated
approximately $7 million of cash excluding the previously announced
$7.5 million termination fee paid to the ExcelStor Group. About
Iomega Iomega Corporation, headquartered in San Diego, is a
worldwide leader in innovative storage and network security
solutions for small- and mid-sized businesses, consumers and
others. The Company has sold more than 400 million digital storage
drives and disks since its inception in 1980. Today, Iomega's
product portfolio includes industry leading network attached
storage products, external hard drives, and the own award-winning
removable storage technology, the REV(R) Backup Drive.
OfficeScreen(R), Iomega's managed security services, which are
available in the U.S. and select markets in Europe, provide
enterprise quality perimeter security and secure remote network
access for SMBs, which help protect small enterprises from data
theft and liability. To learn about all of Iomega's digital storage
products and managed services solutions, please go to the Web at
http://www.iomega.com/. Resellers can visit Iomega at
http://www.iomega.com/ipartner. Copyright(C) 2008 Iomega
Corporation. All rights reserved. Iomega, Zip, REV, and
OfficeScreen are either registered trademarks or trademarks of
Iomega Corporation in the United States and/or other countries.
Certain other product names, brand names and company names may be
trademarks or designations of their respective owners. Legal
Statements THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY
AND IS NOT AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL
ANY SECURITIES. THE SOLICITATION AND THE OFFER TO BUY SHARES OF
IOMEGA'S COMMON STOCK IS ONLY BEING MADE PURSUANT TO THE TENDER
OFFER STATEMENT ON SCHEDULE TO, INCLUDING THE OFFER TO PURCHASE,
THE RELATED LETTER OF TRANSMITTAL AND OTHER TENDER OFFER MATERIALS
THAT EMERGE MERGER CORPORATION, A WHOLLY OWNED SUBSIDIARY OF EMC
CORPORATION, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
APRIL 24, 2008, AS AMENDED. IOMEGA HAS ALSO FILED A
SOLICITATION/RECOMMENDATION STATEMENT WITH THE SECURITIES AND
EXCHANGE COMMISSION IN CONNECTION WITH THE TENDER OFFER. IOMEGA
STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY PRIOR TO MAKING
ANY DECISIONS WITH RESPECT TO THE OFFER BECAUSE THEY CONTAIN
IMPORTANT INFORMATION, INCLUDING THE TERMS AND CONDITIONS OF THE
OFFER. IOMEGA STOCKHOLDERS WILL BE ABLE TO OBTAIN THE TENDER OFFER
STATEMENT ON SCHEDULE TO, THE OFFER TO PURCHASE, THE RELATED LETTER
OF TRANSMITTAL , THE SOLICITATION/RECOMMENDATION STATEMENT AND
OTHER RELATED MATERIALS WITH RESPECT TO THE OFFER, FREE OF CHARGE
AT THE WEBSITE OF THE SECURITIES AND EXCHANGE COMMISSION AT
http://www.sec.gov/. IN ADDITION, A COPY OF THESE MATERIALS MAY BE
OBTAINED AT NO CHARGE BY DIRECTING A REQUEST BY MAIL TO MORROW
& CO., INC., 470 WEST AVENUE, STAMFORD, CONNECTICUT 06902 OR BY
CALLING TOLL-FREE (800) 607-9400. Media, please contact: Chris
Romoser, Iomega Corporation, (858) 314-7148, Analysts/Investors,
please contact: Preston Romm, Iomega Corporation, (858) 314-7188,
IOMEGA CORPORATION CONDENSED STATEMENTS OF OPERATIONS - QTD (In
thousands, except per share data) (Unaudited) For the Three Months
Ended Mar. 30, % of Apr. 1, % of Dec. 31, % of 2008 Sales 2007
Sales 2007 Sales Sales $95,900 100.0% $75,984 100.0% $120,644
100.0% Cost of Sales 81,927 85.4% 61,681 81.2% 99,783 82.7% Gross
margin 13,973 14.6% 14,303 18.8% 20,861 17.3% Operating Expenses:
Selling, general and administrative (1) 10,615 11.1% 10,120 13.3%
14,610 12.1% Research and development 1,929 2.0% 1,739 2.3% 2,711
2.2% License and patent fee income (1,278) (1.3%) (350) (0.5%)
(3,500) (2.9%) Goodwill impairment charge - 0.0% 1,710 2.3% - 0.0%
Restructuring reversals - 0.0% (38) (0.1%) (109) (0.1%) Total
operating expenses 11,266 11.7% 13,181 17.3% 13,712 11.4% Operating
Income 2,707 2.8% 1,122 1.5% 7,149 5.9% Interest and other income
and expense, net 229 0.2% 255 0.3% 1,083 0.9% Income Before Income
Taxes 2,936 3.1% 1,377 1.8% 8,232 6.8% Provision for Income Taxes
(991) (1.0%) (228) (0.3%) (1,710) (1.4%) Net Income $1,945 2.0%
$1,149 1.5% $6,522 5.4% Net Income Per Share $0.04 $0.02 $0.12
Diluted Income Per Share $0.04 $0.02 $0.12 Weighted Average Common
Shares Outstanding 54,765 54,733 54,764 Weighted Average Common
Shares Outstanding - Assuming Dilution 55,384 54,979 55,305 (1) Q1
2008 and Q4 2007 includes $0.7 million and $1.2 million of
professional fees paid to 3rd parties in connection with the
anticipated ExcelStor Group and/or EMC acquisition, respectively.
PRODUCT SALES AND OPERATING INCOME (LOSS) - QTD (In thousands)
(Unaudited) For the Three Months Ended Mar. 30, % of Apr. 1, % of
Dec. 31, % of 2008 Sales 2007 Sales 2007 Sales Sales: Consumer
Products: Consumer Storage Solutions (1) $74,989 78.2% $52,489
69.1% $96,863 80.3% Zip 2,803 2.9% 5,518 7.3% 2,853 2.4% Business
Products: REV 6,835 7.1% 11,204 14.7% 9,186 7.6% Network Storage
Systems (2) 9,078 9.5% 4,738 6.2% 8,949 7.4% Services (3) 1,984
2.1% 1,892 2.5% 2,763 2.3% Other Products 211 0.2% 143 0.2% 30 0.0%
Total Sales $95,900 $75,984 $120,644 Product Operating Income
(Loss): Consumer Products: Consumer Storage Solutions (1) $(999)
$354 $2,641 Zip (4) 1,543 355 1,056 Business Products: REV 272 304
252 Network Storage Systems (2) 700 409 (206) Services (3) (99)
(520) (51) Other Products (5)(6) 1,290 182 3,348 Restructuring
reversals - 38 109 Operating Income $2,707 $1,122 $7,149 (1)
Consumer Storage Solutions is comprised of hard disk, optical and
floppy drives. (2) Includes Network HDD drives. (3) Includes the
System Integration and Managed Services businesses of CSCI, Inc.
and miscellaneous Iomega services. (4) Q1 2007 included a pre-tax,
non-cash $1.7 million goodwill impairment charge. (5) Q4 2007
includes a pre-tax, cash benefit of $3.5 million related to a prior
license of intellectual property. (6) Q1 2008 includes a pre-tax,
cash benefit of $1.3 million related to patent sales and license of
intellectual property. IOMEGA CORPORATION CONDENSED BALANCE SHEETS
(In thousands) (Unaudited) Mar. 30, Dec. 31, 2008 2007 ASSETS: Cash
and cash equivalents $39,699 $53,559 Restricted cash 107 93
Temporary investments 7,909 9,961 Total cash 47,715 63,613 Trade
receivables, net 41,000 41,101 Inventories 59,078 79,883 Deferred
income taxes 2,175 2,175 Other current assets 3,323 2,902 Total
Current Assets 153,291 189,674 Property and equipment, net 3,452
3,867 Long-term cash investments - 1,000 Intangible and other
assets 10,617 10,667 $167,360 $205,208 LIABILITIES AND
STOCKHOLDERS' EQUITY: Accounts payable $26,148 $61,951 Income taxes
payable 3,839 3,368 Other current liabilities 23,196 27,862 Total
Current Liabilities 53,183 93,181 Deferred income taxes 7,644 8,220
Long-term liabilities 2,983 2,652 Stockholders' equity 103,550
101,155 $167,360 $205,208 CONDENSED STATEMENTS OF CASH FLOWS - YTD
(In thousands) (Unaudited) For the Three Months Ended Mar. 30, Apr.
1, 2008 2007 Cash Flows from Operating Activities: Net Income
$1,945 $1,149 Revenue and Expense Adjustments (1) 1,104 2,246 3,049
3,395 Changes in Assets and Liabilities: Trade receivables 337
7,325 Restricted cash (14) - Inventories 20,352 901 Other current
assets (421) 444 Accounts payable (35,803) 225 Accrued
restructuring - (1,501) Other current liabilities and income taxes
(4,195) (2,178) Net cash used in operating activities (16,695)
8,611 Cash Flows from Investing Activities: Purchases of property
and equipment (263) (117) Proceeds from sales of assets 2 49 Sales
of temporary investments 8,075 3,704 Purchases of temporary
investments (4,984) (2,054) Net change in other assets and other
liabilities - 44 Net cash provided by investing activities 2,830
1,626 Cash Flows from Financing Activities: Proceeds from sales of
Common Stock 5 2 Tax benefit from dispositions of employee stock -
- Net cash provided by financing activities 5 2 Net (Decrease)
Increase in Cash and Cash Equivalents (13,860) 10,239 Cash and Cash
Equivalents at Beginning of Period 53,559 56,617 Cash and Cash
Equivalents at End of Period $39,699 $66,856 (1) 2007 includes a
$1.7 million non-cash, goodwill impairment charge. DATASOURCE:
Iomega Corporation CONTACT: Media, Chris Romoser, +1-858-314-7148,
, or Analysts-Investors, Preston Romm, +1-858-314-7188, , both of
Iomega Corporation Web site: http://www.iomega.com/
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