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IOMEGA REPORTS FOURTH-QUARTER RESULTS

 ROY, Utah, Jan. 21 /PRNewswire/ -- Iomega Corp. (NASDAQ-NMS: IOMG) announced today the financial results of the fourth quarter ended Dec. 31, 1992. The company reported sales of $37.5 million and net income of $41,000. In the corresponding quarter of 1991, sales were $39.4 million and net income was $4.3 million, or $0.26 per share.
 For the 12 months ended Dec. 31, 1992, sales were $139.2 million, and net income was $4.7 million, or $0.29 per share, compared to sales of $136.6 million, and net income of $12.3 million, or $0.75 per share in 1991.
 Sales in the fourth quarter of 1992, in addition to being below the corresponding quarter of 1991, were significantly below the company's expectations. Actual sales for October and November of 1992 were approximately equal to the comparable months of 1991. However, December sales in the company's domestic distribution, OEM and federal channels did not materialize as expected. This reduction in revenue, along with lower December gross margins caused by a heavier mix of lower-margin product sales and higher operating expenses, resulted in earnings that were significantly below the fourth quarter of 1991, and below the company's expectations.
 The company reported gross margins of 43.6 percent and 46.8 percent for the three- and 12-month periods ended Dec. 31, 1992, compared to 50.5 percent and 49.9 percent for the comparable periods of 1991. Lower prices on the company's 5-1/4-inch 90 Megabyte products, as well as the introduction of Tape products late in the second quarter of 1992 and Floptical products in the fourth quarter of 1992, both of which yield lower gross margins than the company's main Bernoulli products were the primary reasons for the decline in gross margins.
 Operating expenses increased by approximately 16 percent for the fourth quarter and 14 percent for the year 1992 when compared to the same periods of 1991. Higher operating expenses are primarily related to increased investments in Sales and Marketing and Research and Development to fund the new Tape, Floptical and Multidisk 150 products. In addition, the company increased its investment in its European operations and began to invest in the development of thin film head technology during 1992.
 The company's balance sheet remains strong with cash and cash equivalents of $19.7 million, working capital of $35.0 million, and a ratio of current assets to current liabilities of 2.7 to 1. Cash and cash equivalents have declined by $11.9 million during the year 1992, primarily because of the purchase of common stock treasury shares, purchases of equipment and leasehold improvements, an increase in inventories, and pre-payments of royalties related to Floptical technology.
 Iomega Corp., Roy, 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)
 For the Three For the 12
 Months Ended Months Ended
 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Sales $37,507 $39,387 $139,174 $136,566
 Cost of sales 21,142 19,487 74,090 68,404
 Gross margin 16,365 19,900 65,084 68,162
 Operating expenses:
 Selling, general and
 administrative 10,310 9,620 37,572 34,323
 Research and
 development 6,232 4,693 21,959 17,939
 Total operating
 expenses 16,542 14,313 59,531 52,262
 Operating income (loss) (177) 5,587 5,553 15,900
 Interest and other income
 and expense, net 231 510 592 1,661
 Income before income taxes 54 6,097 6,145 17,561
 Provision for income taxes (13) (1,785) (1,474) (5,236)
 Net income $41 $4,312 $4,671 $12,325
 Net income per common
 share $0.00 $0.26 $0.29 $0.75
 Weighted average
 shares outstanding 15,842,161 16,663,129 16,212,287 16,471,099
 IOMEGA CORP.
 Condensed Consolidated Balance Sheets
 (In thousands)
 Dec. 31, Dec. 31,
 1992 1991
 Assets:
 Cash and cash equivalents $19,691 $31,611
 Trade receivables 15,482 19,168
 Inventories 18,546 12,019
 Other current assets 1,591 1,679
 Total current assets 55,310 64,477
 Fixed assets (net) 22,041 15,634
 Other assets 8,871 6,935
 Total $86,222 $87,046
 Liabilities and Stockholders' Equity:
 Current liabilities $20,272 $21,312
 Long-term liabilities 926 889
 Stockholders' equity 65,024 64,845
 Total $86,222 $87,046
 -0- 1/21/93
 /CONTACT: Paul D. Slack of Iomega, 801-778-1000/
 (IOMG)


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

BP-MS -- LA038 -- 7679 01/21/93 18:02 EST
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Date:Jan 21, 1993
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