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IOMEGA REPORTS THIRD QUARTER RESULTS

 ROY, Utah, Oct. 14 /PRNewswire/ -- IOMEGA Corporation (NASDAQ-NMS: IOMG) announced today the results for its third quarter ended Oct. 3.
 The company reported sales of $36.1 million and net income of $0.3 million, or $0.02 per share. For the corresponding quarter of 1992, sales were $36.9 million and net income was $2.0 million, or $0.13 per share.
 For the nine-month period ended Oct. 3, sales were $109.6 million and net income was $2.5 million, or $0.16 per share, compared to sales of $101.7 million and net income of $4.6 million, or $0.28 per share for the first nine months of 1992.
 Net income for the third quarter of 1993 includes a benefit for income taxes of $0.3 million primarily attributable to the recognition of research and development tax credits due to the recent passage of the Tax Act of 1993. Therefore, on a before-tax basis, the company essentially broke even in the third quarter of 1993.
 The company announced a price reduction of approximately 25 percent on certain Bernoulli products on Aug. 30. The company estimates that these price reductions, combined with price protection credits granted to customers, resulted in lower revenue of approximately $3.5 million in the third quarter of 1993. Lower Bernoulli margins, along with an increased percentage of sales of lower-margin Tape and Floptical products, contributed to a reduction in gross margins from 47.3 percent in the third quarter of 1992 to 38.3 percent in the third quarter of 1993.
 Operating expenses declined by 3 percent in the third quarter of 1993 compared to 1992 due to lower research and development expenses. Included in operating expenses in the third quarter of 1993 is approximately $0.6 million of restructuring expenses associated with changes in work force. Excluding those restructuring costs, operating expenses would have declined by 7 percent. For the year-to-date 1993, operating expenses include $1.6 million in restructuring costs.
 Included in the first nine months 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 has reported net income of $0.1 million, or $0.01 per share before the effect of the accounting change for the first nine months of 1993.
 The company's balance sheet remains strong with cash and temporary investments of $25.3 million, working capital of $43.0 million, and a ratio of current assets to current liabilities of 3.0 to 1. Cash and temporary investments have increased by $5.6 million during 1993 due to proceeds from the sale of a building of $4.5 million, a reduction in inventories of $5.6 million, offset by increased trade receivables of $4.9 million.
 IOMEGA Corporation 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 Nine Months Ended
 Oct. 3, Sept. 27, Oct. 3, Sept. 27,
 1993 1992 1993 1992
 Sales $36,086 $36,869 $109,576 $101,667
 Cost of sales 22,276 19,432 65,364 52,948
 Gross margin 13,810 17,437 44,212 48,719
 Gross margin percent 38.3 pct 47.3 pct 40.3 pct 47.9 pct
 Operating Expenses:
 Selling, general and
 administrative 9,008 9,229 29,512 27,262
 Research and
 development 4,753 5,600 14,415 15,727
 Restructuring costs 568 --- 1,550 ---
 Total operating
 expenses 14,329 14,829 45,477 42,989
 Operating income (loss) (519) 2,608 (1,265) 5,730
 Interest and other
 income and expense,
 net 531 81 982 361
 Income (loss) before
 income taxes and
 cumulative effect of
 accounting change 12 2,689 (283) 6,091
 (Provision) benefit for
 income taxes 317 (645) 429 (1,461)
 Net income before
 cumulative effect of
 accounting change 329 2,044 146 4,630
 Cumulative effect of
 accounting change --- --- 2,337 ---
 Net income $329 $2,044 $2,483 $4,630
 Net Income Per
 Common Share:
 Net income before
 cumulative effect
 of accounting
 change $0.02 $0.13 $0.01 $0.28
 Cumulative effect of
 accounting change --- --- $0.15 ---
 Net income $0.02 $0.13 $0.16 $0.28
 Weighted average
 shares outstanding 15,182 15,708 15,266 16,365
 Condensed Consolidated Balance Sheets
 (In thousands)
 Oct. 3, Dec. 31,
 1993 1992
 (Unaudited)
 Assets:
 Cash and temporary
 investments $25,268 $19,691
 Trade receivables 20,415 15,482
 Inventories 12,989 18,546
 Other current assets 5,742 2,324
 Total current assets 64,414 56,043
 Fixed assets (net) 20,588 22,041
 Other assets 5,873 8,871
 Total $90,875 $86,955
 Liabilities and
 stockholders' equity:
 Current liabilities $21,449 $21,005
 Long-term liabilities 963 926
 Stockholders' equity 68,463 65,024
 Total $90,875 $86,955
 -0- 10/14/93
 /CONTACT: Kristy Pregill, IOMEGA Corp., 801-778-1000/
 (IOMG)


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

EH -- LA016 -- 2122 10/14/93 10:40 EDT
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Date:Oct 14, 1993
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