Printer Friendly

IOMEGA ANNOUNCES CORPORATE-WIDE RESTRUCTURING

 ROY, Utah, Feb. 16 /PRNewswire/ -- Iomega Corp. (NASDAQ-NMS: IOMG) announced today that it is restructuring its operations to reduce overhead expenses and thereby improve the company's competitive position in the industry. This corporate-wide restructuring has resulted in the elimination of 99 positions from all levels of the organization; professional, management and staff. Twelve of these employees have been offered the option to take other positions in the company. There was minimal impact to regular production personnel.
 Commenting on this action, Fred Wenninger, president and chief executive officer, said, "There are several factors involved: First, the start up expenses related to the development and launch of our new tape and Floptical product lines and the MultiDisk 150 drive introduced during the second half of 1992 have not yet been offset by revenues. Second, our federal business continues to be below our expectations. While sales in the first quarter to date are ahead of sales in the same period one year ago, our expense structure has been based on sales substantially above our current rate. It was, therefore, necessary for us to take immediate action."
 Wenninger also added, "Our new tape drive is being received very well, although we are seeing strong price competition. The other new products, however, were only introduced at the end of 1992. As with most new products, it takes time for revenues to offset expenses.
 In addition to these cutbacks, we are restructuring to give bottom line responsibility to our Bernoulli, Tape, and Floptical product lines. The three product lines, Subsystem Development and Manufacturing will report into a newly formed internal operations unit headed by Leon Staciokas, our Sr. VP of Operations. Our new structure will provide a more responsive and efficient organization to meet the challenges of our rapidly changing industry."
 Wenninger also announced today that Hal Julsen has stepped down as senior vice president of sales and marketing. He will remain with the company on special assignment until September 1993. His replacement has not been named.
 Iomega, Roy, Utah, 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.
 -0- 2/16/93
 /CONTACT: Paul D. Slack of Iomega, 801-778-1000/
 (IOMG)


CO: Iomega Corp. ST: Utah IN: CPR SU: RCN

BB -- LA011 -- 6874 02/16/93 11:37 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 16, 1993
Words:416
Previous Article:KELLY SERVICES DECLARES QUARTERLY DIVIDEND
Next Article:SHELDAHL EXPECTS TO BE AHEAD OF PLAN IN SECOND QUARTER
Topics:


Related Articles
IOMEGA REPORTS FIRST QUARTER RESULTS
IOMEGA APPOINTS TONY RADMAN SENIOR VICE PRESIDENT, SALES AND MARKETING
IOMEGA REPORTS SECOND QUARTER RESULTS
IOMEGA CORP. ANNOUNCES LOWER BERNOULLI PRICES
IOMEGA CORP. ANNOUNCES PENDING RESIGNATION OF CHIEF EXECUTIVE OFFICER
IOMEGA REPORTS FOURTH QUARTER RESULTS
IOMEGA REPORTS FIRST QUARTER RESULTS
IOMEGA REPORTS THIRD QUARTER RESULTS
IOMEGA AND CONNER REACH AGREEMENT SETTLING PATENT LITIGATION
Agreement reached on EMC deal; Company will buy Iomega for $213M.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters