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IOMEGA REPORTS SECOND QUARTER RESULTS

 ROY, Utah, July 15 /PRNewswire/ -- IOMEGA Corp. (NASDAQ-NMS: IOMG) announced today the financial results for the second quarter ended July 4.
 The company reported sales of $36.5 million and net income of $.9 million, or $0.06 per share. For the corresponding quarter of 1992, sales were $31.7 million and net income was $.8 million, or $0.05 per share.
 For the six-month period ended July 4, sales were $73.5 million and net income was $2.1 million, or $0.14 per share, compared to sales of $64.8 million and net income of $2.6 million, or $0.16 per share for the first half of 1992.
 For the second quarter, net sales increased by 15 percent compared to the comparable quarter of the prior year, but the gross margin percentage declined from 47.6 percent to 40.6 percent. This decline in the gross margin percentage is primarily because of a higher mix of lower margin Tape and Floptical product sales. Operating expenses declined by 3 percent due primarily to the restructuring actions taken earlier in the year. The higher sales, lower gross margins and lower operating expenses resulted in operating income in the second quarter of 1993 approximately equal to the second quarter of 1992.
 The company recorded a non-operating gain in the second quarter of 1993, of approximately $500,000 on the sale of its building in Salt Lake City. On an after-tax basis, this gain represents $0.02 per share of the $0.06 per share recorded net income.
 For the first half of 1993, sales were 13 percent higher than the first six months of 1992, but the gross margin percentage declined from 48.3 percent to 41.4 percent. As is the case with the second quarter, the decline in gross margin percentages is primarily because of sales of lower margin Tape and Floptical products in 1993. Operating expenses for year-to-date 1993 are $3.0 million higher than for the same period of 1992. Approximately $1.0 million of this increase is because of costs resulting from a corporate-wide restructuring action which took place in February 1993. The higher sales offset by lower gross margins and higher operating expenses result in an operating loss of $.7 million for the first half of 1993, vs. operating income of $3.1 million for the first half of 1992.
 Included in the first half of 1993 results is a one-time credit representing the cumulative effect from a change in accounting for income taxes of $2.3 million, or $0.15 per share, which was recorded in the first quarter of 1993. Therefore, the company reported a net loss of $.2 million, or $0.01 per share before the effect of the accounting change, for the first half of 1993.
 The company's balance sheet has strengthened during 1993 as cash and temporary investments have increased by $3.0 million and working capital has increased by $8.4 million since Dec. 31, 1992. The major components of the increase in cash are net proceeds from the sale of the building of $4.5 million, and reduction in inventories of $4.9 million, offset by a $4.2 million increase in trade receivables and a $3.2 million decline in accounts payable and accrued liabilities.
 IOMEGA Corp. develops, manufactures and sells high-performance removable mass storage products for desktop computers. IOMEGA's patented Bernoulli Technology provides unlimited data storage capability by combining the removability of floppy drives with the high capacity and performance of rigid drives. IOMEGA's common stock is listed on the NASDAQ National Market System under the symbol IOMG.
 IOMEGA CORP.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 (Unaudited)
 For The For The
 Three Months Ended Six Months Ended
 July 4, June 28, July 4, June 28,
 1993 1992 1993 1992
 Sales $36,495 $31,714 $73,490 $64,798
 Cost of sales 21,686 16,633 43,088 33,516
 Gross margin 14,809 15,081 30,402 31,282
 Operating Expenses:
 Selling, general and
 administrative 9,307 9,048 20,504 18,033
 Research and
 development 4,627 5,289 9,662 10,127
 Restructuring costs 0 --- 982 ---
 Total operating
 expenses 13,934 14,337 31,148 28,160
 Operating income (loss) 875 744 (746) 3,122
 Interest and other
 income and expense,
 net 644 46 451 280
 Income (loss) before
 income taxes and
 cumulative effect of
 accounting change 1,519 790 (295) 3,402
 (Provision) benefit for
 income taxes (587) (6) 102 (816)
 Net income (loss) before
 cumulative effect of
 accounting change $932 $784 ($193) $2,586
 Cumulative effect of
 accounting change --- --- 2,337 ---
 Net income $932 $784 $2,144 $2,586
 Net Income Per
 Common Share:
 Net income (loss)
 before cumulative
 effect of accounting
 change $0.06 $0.05 ($0.01) $0.16
 Cumulative effect of
 accounting change --- --- $0.15 ---
 Net income $0.06 $0.05 $0.14 $0.16
 Weighted average
 shares outstanding 15,392,913 16,445,586 15,491,769 16,659,084
 IOMEGA CORP.
 Condensed Consolidated Balance Sheets
 (In thousands)
 July 4, Dec. 31,
 1993 1992
 (Unaudited)
 Assets:
 Cash and temporary
 investments $22,737 $19,691
 Trade receivables 19,691 15,482
 Inventories 13,630 18,546
 Other current assets 5,142 2,324
 Total current assets 61,200 56,043
 Fixed assets (net) 20,782 22,041
 Other assets 4,304 8,871
 Total $86,286 $86,955
 Liabilities and
 stockholders' equity
 Current liabilities $17,769 $21,005
 Long-term liabilities 952 926
 Stockholders' equity 67,565 65,024
 Total $86,286 $86,955
 -0- 7/15/93
 /CONTACT: Paul D. Slack of IOMEGA Corp., 801-778-1000/
 (IOMG)


CO: IOMEGA Corp. ST: California IN: CPR SU: ERN

EH -- LA016 -- 1838 07/15/93 10:04 EDT
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Publication:PR Newswire
Date:Jul 15, 1993
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