STR Editor's Mail Call "...a place for the readers to be heard" | ||
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STReport's Discussion Forum on Delphi |
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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. |