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IOMEGA EXPECTS LOWER FOURTH QUARTER EARNINGS

 ROY, Utah, Dec. 2 ~PRNewswire~ -- Based on two months of unaudited results, Iomega Corp. (NASDAQ: IOMG) stated today that it expects net earnings in the fourth quarter ending Dec. 31, 1992 to be substantially lower than in the comparable quarter of 1991.
 Actual revenue for October and November of 1992 was approximately equal to revenue for the same period of 1991, but higher operating expenses and lower gross margins have resulted in reduced net earnings. The company continues to experience increases in revenues through its worldwide commercial distribution channels; however, this increase has been offset by declining sales to its federal government channel of distribution.
 Higher operating expenses are primarily related to investments in Research and Development and Sales and Marketing to support and launch several new products. In November, the company announced the availability of a second generation Floptical drive, a 150 megabyte Bernoulli drive, and a new Mageneto-Optical (MO) drive. Earlier in 1992, Iomega introduced a Tape drive product.
 Gross margins in the first two months of the fourth quarter were several percentage points lower than the prior year, and slightly lower than in the previous quarter of 1992. Lower prices on Bernoulli products to meet competitive pressures, and lower gross margins on the new Tape and Floptical products are the principal reasons for the overall gross margin decline.
 Iomega Corp., 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- 12~2~92
 ~CONTACT: Paul D. Slack of Iomega Corp., 801-778-1000~
 (IOMG)


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

EH -- LA010 -- 2780 12~02~92 09:32 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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