Iomega rapporteert de financiële resultaten van het derde kwartaal
Iomega International S.A., leverancier van oplossingen voor gegevensbeheer, heeft aangekondigd dat haar moederbedrijf, Iomega Corporation een omzet heeft behaald van $182.1 miljoen en een nettoverlies van $ 71.2 miljoen, of ($1.32) per gesplitst aandeel voor het derde kwartaal dat op 30 september 2001 eindigde. Werner Heid CEO, Iomega Corporation: 'We hebben actie ondernomen om het businessmodel aan te passen, de consumentenfocus te vergroten en de bedrijfsvoering en voorraadketen efficiënter te laten verlopen.'
Iomega Reports Third Quarter Results
Geneva, Switzerland, November 26, 2001 ? Iomega International S.A.,
the European headquarters of Iomega Corporation (NYSE: IOM), a global
leader in data management solutions, announced that its parent
company, Iomega Corporation, reported revenue of $182.1 million and a
net loss of $71.2 million, or ($1.32) per diluted share, for the
third quarter ended September 30, 2001. This net loss includes
pre-tax restructuring charges of $33.3 million, pre-tax
non-restructuring charges of $31.1 million, and an income tax charge
of $28.7 million relating to an increase in the valuation allowance
for net deferred tax assets
Third quarter 2001 revenue of $182.1 million was almost flat compared
to second quarter 2001 revenue of $184.1 million, despite the
slowness that followed September 11. Third quarter 2001 revenue and
net loss compares with third quarter 2000 revenue of $320.5 million
and net income of $55.4 million, or $1.00 per diluted share, which
included a $20.9 million income tax credit attributable to a decrease
in Iomega Corporation's valuation allowance for net deferred tax
assets and a $2.3 million pre-tax credit attributable to a reversal
of restructuring charges. Third quarter 2001 net loss compares with a
second quarter 2001 net loss of $35.9 million, or ($0.66) per diluted
share, which included $46.0 million of pre-tax non-restructuring
charges, $1.1 million of pre-tax restructuring charges, and an income
tax benefit of $22.3 million.
"Iomega has made significant progress with its broad restructuring
initiatives and reorganisation," said Werner Heid, President and CEO,
Iomega Corporation. "We have taken aggressive actions to adjust our
business model, to increase our customer focus and to improve our
operational and supply chain efficiencies. We understand how
difficult these steps have been for shareholders, employees,
customers and suppliers, but we also know that they were essential
for our future success. Iomega's employees have done a terrific job
under difficult business conditions this quarter, stabilizing
sequential quarterly revenue despite continuing weakness and
uncertainty in the technology sector, and executing the restructuring
initiatives."
Iomega Corporation's third quarter 2001 gross margin percentage of
17.7% compares to 4.0% in the second quarter 2001 and 40.8% in the
third quarter 2000. Excluding non-restructuring charges of $25.2
million in the third quarter 2001 and $44.9 million in the second
quarter 2001, the gross margin percentage improved to 31.6% from
28.4%, respectively.
Third quarter 2001 restructuring and non-restructuring charges
totaled $64.4 million, within the range of $55 to $65 million
previously announced. Approximately $33 million of these charges are
expected to be cash charges, mainly related to severance expenses,
lease terminations, contractual and other obligations. The remainder
of these charges, approximately $31 million, are expected to be
non-cash charges.
The restructuring charges of $33.3 million include $17.4 million
related to asset write-downs and $7.6 million is associated with
lease terminations, and $15.9 million related to the reduction of
1,234 regular and temporary personnel worldwide, or approximately 37%
of Iomega Corporation's worldwide workforce. Iomega Corporation
anticipates these actions, when fully implemented over the remainder
of the year, will result in an annual cost reduction of approximately
$65 million, beginning in fiscal year 2002.
The non-restructuring charges of $31.1 million include $15.1 million
related to write-downs of HipZip(TM), FotoShow(TM), CD-RW, and other
inventory, $9.1 million associated with the termination of various
contractual arrangements, $6.3 million related to write-downs of
manufacturing equipment and other assets, and $0.6 million of other
charges. A total of $25.2 million of the non-restructuring charges
are included in cost of sales; the remaining $5.9 million is included
in operating expenses.
Iomega Corporation did not record a net tax benefit on the third
quarter pre-tax loss (which would have reduced the third quarter net
loss), reflecting a $28.7 million non-cash charge relating to an
increase in the valuation allowance for net deferred tax assets.
Third quarter 2001 Zip(R) revenue of $142.8 million was almost flat
compared to $143.6 million in the second quarter 2001. Zip drive unit
sell-through was flat in the third quarter 2001 compared with the
second quarter 2001, while Zip media unit sell-through declined.
Third quarter 2001 Zip revenue decreased $104.6 million from third
quarter 2000 revenue of $247.4 million. The decrease in Zip revenue
compared to the same period a year ago was primarily the result of
lower prices and lower shipments of both disks and drives. The third
quarter 2001 Zip gross margin percentage excluding the
non-restructuring charges was 41% compared to 40% in the second
quarter 2001 and 46% in the third quarter 2000. Third quarter 2001
Zip product profit margin (PPM) of $27.9 compares with $31.4 million
in the second quarter 2001 and $87.8 million in the third quarter
2000. Excluding non-restructuring charges of $7.5 million and $4.5
million the Zip PPM was $35.4 million and $35.9 million in the third
and second quarter 2001, respectively. Cumulative worldwide Zip drive
shipments now exceed 44 million units and Zip disk shipments now
exceed 275 million units.
Third quarter 2001 Jaz(R) revenue of $13.6 million increased $0.3
million from the second quarter 2001 revenue of $13.3 million and
decreased $21.3 million from third quarter 2000 revenue of $34.9
million. Jaz PPM of $3.5 million compares with $2.5 million in the
second quarter 2001 and $9.8 million in the third quarter 2000. The
year over year decrease in Jaz revenues and PPM primarily reflects
the anticipated lower shipments towards the end of the product
lifecycle of both Jaz drives and disks.
Third quarter 2001 CD-RW revenue of $17.6 million decreased $0.7
million from second quarter 2001 revenue of $18.3 million, and
decreased $16.8 million from third quarter 2000 revenue of $34.4
million. Third quarter 2001 CD-RW product loss of $17.0 million
compares to a product loss of $21.0 million in the second quarter
2001 and a product profit margin of $2.1 million in the third quarter
2000. Excluding non-restructuring charges of $7.5 million and $10.0
million, the CD-RW product loss was $9.5 million and $11.0 million in
the third and second quarter 2001, respectively.
Third quarter 2001 PocketZip(TM) revenue of $2.1 million compares to
$2.3 million in the second quarter 2001, and $3.0 million in the
third quarter 2000. Third quarter PocketZip product loss of $5.3
million compares to a product loss of $23.0 million in the second
quarter 2001, and a product loss of $4.9 million in the third quarter
2000. Excluding non-restructuring charges of $3.6 million and $17.9
million, the PocketZip product loss was $1.7 million and $5.1 million
in the third and second quarter 2001, respectively.
Other revenue includes Peerless(TM) revenue of $4.8 million and $3.8
million in the third and second quarter 2001, respectively. Other
product losses of $20.3 million and $21.2 million include
non-restructuring charges of $6.6 million and $12.5 million in the
third and second quarter 2001 respectively, as well as costs related
to Peerless, FotoShow, software, sourced products, and other
miscellaneous products.
For the first nine months of 2001, Iomega's net loss was $97.2
million, or ($1.80) per diluted share. This compares to net income of
$147.6, or $2.66 per diluted share, for the first nine months of
2000. Revenue of $644.4 million for the first nine months of 2001
decreased $324.6 million from $969.0 million for the first nine
months of 2000 due to lower Zip and Jaz revenue.
Iomega Corporation's cash, cash equivalents, and temporary
investments balance at September 30, 2001 was $336 million with no
long-term debt. During the third quarter of 2001, the Company
repurchased 1.25 million shares (split adjusted) of its common stock
for approximately $8.0 million. Cumulative shares repurchased under
the buyback program announced on September 8, 2000 are 1.57 million
shares for approximately $15.4 million through the end of third
quarter 2001.
Iomega also announced the relocation of its corporate headquarters
from Roy, Utah, to San Diego, California. The move to San Diego is in
process and expected to be completed in the next six months.
Approximately 100 employees will be based in the San Diego area.
Among the corporate functions to be relocated to San Diego are
corporate marketing, product marketing, Internet marketing, strategic
product sourcing, software applications and customer advocacy, as
well as certain executive staff members and personnel in human
resources, legal, finance and information technology. Iomega will
continue to have engineering, research and development, and various
operations offices at its previous headquarters in Roy, Utah, the
world center of research and development excellence and expertise in
removable magnetic storage.
For further information please visit:
http://media.corporate-ir.net/media_files/NYS/iom/reports/q3_financials.pdf
About Iomega
Iomega International S.A. is a Swiss subsidiary of Iomega Corporation
(NYSE:IOM) manufactures and markets the award-winning Zip, Jaz and
Peerless drives and disks, software, and Iomega QuikSync software;
Iomega also markets Iomega CD-RW drives and the Predator CD-RW drive.
Iomega's products help people to save, share, manage and create
important information such as Internet downloads, audio files,
personal photographs, spreadsheets, and slides, while protecting that
content from viruses and hackers. Used in homes, businesses,
government and educational facilities and by creative professionals
everywhere, Iomega storage solutions are the enabling technologies
preferred by millions. The Company can be reached at
http://www.iomega.com/europe.
Voor overige informatie kunt u contact opnemen met:
Tara van Oyen Peter Wharton
Brodeur Worldwide Iomega International S.A.
Tel: +31 20 346 20 00 Geneva, Zwitserland
Fax: +31 20 669 72 65 Tel: +41 22 87 97 000
email: tvanoyen@nl.brodeur.com Fax: +41 22 87 97 453
email: wharton@iomega.com