STR Editor's Mail Call "...a place for the readers to be heard"

 Editor's MailBag

Messages * NOT EDITED *
for content

news.streport.com

STReport's Discussion Forum on Delphi
FREE! JOIN Click Here TODAY! FREE!
 

 

Iomega plans to cut jobs, expects loss

Iomega, maker of the Zip storage drive for personal computers, said it will cut 450 jobs as it closes two California plants and warned of a second- quarter loss. The company, which previously said it will close plants in San Jose and San Diego, California, said the job cuts will be in California and other U.S. locations. It expects a loss, excluding a $45 million restructuring charge, of 5 cents to 10 cents a share. Iomega was expected to break even in the second quarter, the average estimate of four analysts polled by First Call. Iomega blamed the expected loss on weakness in its Jaz drive and disk sales, and a delay in shipping its Clik PC Card drive. Roy, Utah-based Iomega rose 0.25 to 4.375 yesterday. About $27 million of the 11-cent a share charge is noncash and the remaining $18 million applies to severance-related expenses, lease buyouts, and other cash expenses, the company said.

 

 

left.gif (2263 bytes)

Back to Index