Fourth quarter 2007 net income included a pre-tax, cash benefit of
Total year 2007 net revenue was
Cash, cash equivalents and temporary investments, inclusive of long-term
cash investments, at
"I am pleased with our financial and operational execution for the fourth
quarter and the strong revenue performance in our Consumer Storage and Network
Storage product lines, both of which achieved substantial year-over-year
growth despite the HDD supply constraints the entire industry experienced this
quarter," said
2008 Financial Guidance
In December, we issued preliminary revenue guidance for 2008 of
Conference Call Information
As previously announced, Iomega will host a conference call with
simultaneous audio webcast beginning at
About Iomega
Iomega Corporation, headquartered in
Special Note Regarding Forward-Looking Statements
Statements contained in this release regarding our expectations concerning
the first quarter, regarding margin levels generally obtained, the forecast
presented in the section of this release entitled "2008 Financial Guidance"
and any other statements that are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. All such statements are based upon information available to us as of
Important Additional Information for Investors and Stockholders
This press release, to the extent that it discusses Iomega's acquisition
of ExcelStor, relates to the proposed acquisition of ExcelStor Great Wall
Technology Limited, a
The Company, EGWTL, SETL, the Selling Shareholders and each of their
respective executive officers and directors may be deemed to be participants
in the solicitation of proxies from the stockholders of the Company in favor
of the transaction. Information about the executive officers and directors of
the Company and their ownership of the Company's common stock is set forth in
the proxy statement for the Company's 2007 Annual Meeting of Stockholders
filed with the SEC on
Copyright(C) 2008 Iomega Corporation. All rights reserved. Iomega, Zip,
REV, and OfficeScreen are either registered trademarks or trademarks of Iomega
Corporation in the
Media, please contact: Chris Romoser, Iomega Corporation, (858) 314-7148, romoser@iomega.com Analysts/Investors, please contact: Preston Romm, Iomega Corporation, (858) 314-7188, romm@iomega.com IOMEGA CORPORATION CONDENSED STATEMENTS OF OPERATIONS - QTD (In thousands, except per share data) (Unaudited) For the Three Months Ended Dec. 31, % of Dec. 31, % of Sept. 30, % of 2007 Sales 2006 Sales 2007 Sales Sales $120,644 100.0% $76,226 100.0% $80,667 100.0% Cost of Sales 99,783 82.7% 60,824 79.8% 67,714 83.9% Gross margin 20,861 17.3% 15,402 20.2% 12,953 16.1% Operating Expenses: Selling, general and administrative (1) 14,610 12.1% 9,917 13.0% 10,120 12.5% Research and development 2,711 2.2% 1,959 2.6% 1,872 2.3% License and patent fee income (3,500) (2.9%) - 0.0% - 0.0% Goodwill impairment charge - 0.0% 793 1.0% - 0.0% Restructuring reversals (109) (0.1%) (829) (1.1%) (153) (0.2%) Total operating expenses 13,712 11.4% 11,840 15.5% 11,839 14.7% Operating Income 7,149 5.9% 3,562 4.7% 1,114 1.4% Interest and other income and expense, net 1,083 0.9% 752 1.0% 728 0.9% Income Before Income Taxes 8,232 6.8% 4,314 5.7% 1,842 2.3% Benefit (Provision) for Income Taxes (1,710) (1.4%) 286 0.4% (549) (0.7%) Net Income From Continuing Operations 6,522 5.4% 4,600 6.0% 1,293 1.6% Income From Discontinued ByteTaxi, Inc. Operations (net of taxes) (2) - 0.0% 272 0.4% - 0.0% Net Income $6,522 5.4% $4,872 6.4% $1,293 1.6% Net Income Per Share $0.12 $0.09 $0.02 Diluted Income Per Share $0.12 $0.09 $0.02 Weighted Average Common Shares Outstanding 54,764 54,730 54,754 Weighted Average Common Shares Outstanding - Assuming Dilution 55,305 55,191 55,518 (1) Q4 2007 and Q3 2007 includes $1.2 million and $0.3 million of professional fees paid to 3rd parties in connection with the anticipated ExcelStor Group acquisition, respectively. (2) Q4 2006 relates to the final payment from an escrow account associated with the ByteTaxi, Inc. sale. PRODUCT SALES AND OPERATING INCOME (LOSS) - QTD (In thousands) (Unaudited) For the Three Months Ended Dec. 31, % of Dec. 31, % of Sept. 30, % of 2007 Sales 2006 Sales 2007 Sales Sales: Consumer Products: Consumer Storage Solutions (1) $96,863 80.3% $52,150 68.4% $60,685 75.2% Zip 2,853 2.4% 5,472 7.2% 3,816 4.7% Business Products: REV 9,186 7.6% 11,929 15.6% 8,981 11.1% Network Storage Systems (2) 8,949 7.4% 5,093 6.7% 5,523 6.8% Services (3) 2,763 2.3% 1,536 2.0% 1,653 2.0% Other Products 30 0.0% 46 0.1% 9 0.0% Total Sales $120,644 $76,226 $80,667 Product Operating Income (Loss): Consumer Products: Consumer Storage Solutions (1) $2,641 $2,331 $(545) Zip (4) 1,056 1,510 1,224 Business Products: REV 252 (1,198) 204 Network Storage Systems (2) (206) 690 566 Services (3) (51) (464) (349) Other Products (5) 3,348 (136) (139) Restructuring reversals 109 829 153 Operating Income $7,149 $3,562 $1,114 (1) Consumer Storage Solutions is comprised of hard disk, optical, floppy and flash drives. (2) Includes Network HDD drives. (3) Includes the System Integration and Managed Services businesses of CSCI, Inc. Also includes miscellaneous Iomega services previously classified in Other Products. (4) Q4 2006 included a $0.8 million goodwill impairment charge. (5) Q4 2007 includes a pre-tax, cash benefit of $3.5 million related to a prior license of intellectual property. IOMEGA CORPORATION CONDENSED STATEMENTS OF OPERATIONS - YTD (In thousands, except per share data) (Unaudited) For the Twelve Months Ended Dec. 31, % of Dec. 31, % of 2007 Sales 2006 Sales Sales $336,614 100.0% $229,554 100.0% Cost of Sales 276,358 82.1% 183,342 79.9% Gross margin 60,256 17.9% 46,212 20.1% Operating Expenses: Selling, general and administrative (1) (3) 45,145 13.4% 41,391 18.0% Research and development 8,106 2.4% 8,905 3.9% License and patent fee income (3,952) (1.2%) (1,085) (0.5%) Goodwill impairment charges 2,963 0.9% 8,728 3.8% Restructuring charges (reversals) (344) (0.1%) 3,529 1.5% Total operating expenses 51,918 15.4% 61,468 26.8% Operating Income (Loss) 8,338 2.5% (15,256) (6.6%) Interest and other income and expense, net (2) 2,978 0.9% 3,865 1.7% Income (Loss) Before Income Taxes 11,316 3.4% (11,391) (5.0%) Benefit (Provision) for Income Taxes (1,261) -0.4% 2,276 1.0% Income (Loss) From Continuing Operations 10,055 3.0% (9,115) (4.0%) Income From Discontinued ByteTaxi, Inc. Operations (net of taxes) (4) - 0.0% 272 0.1% Net Income (Loss) $10,055 3.0% $(8,843) (3.9%) Income (Loss) Per Share $0.18 $(0.17) Diluted Earnings (Loss) Per Share $0.18 $(0.17) Weighted Average Common Shares Outstanding 54,747 52,855 Weighted Average Common Shares Outstanding - Assuming Dilution 55,204 52,855 (1) 2006 included $1.0 million of non-restructuring, severance related costs associated with prior CEO. (2) 2006 included a $1.1 million gain associated with the release of various liabilities for a European subsidiary for which operations ceased in 1999. The Company dissolved this entity in the third quarter of 2006. (3) 2007 includes $2.3 million of professional fees paid to 3rd parties in connection with the anticipated ExcelStor Group acquisition. (4) 2006 relates to the final payment from an escrow account associated with the ByteTaxi, Inc. sale. PRODUCT SALES AND OPERATING INCOME (LOSS) - YTD (In thousands) (Unaudited) For the Twelve Months Ended Dec. 31, % of Dec. 31, % of 2007 Sales 2006 Sales Sales: Consumer Products: Consumer Storage Solutions (1) $250,125 74.3% $134,149 58.4% Zip 15,950 4.7% 31,153 13.6% Business Products: REV 38,574 11.5% 42,798 18.6% Network Storage Systems (2) 24,026 7.1% 17,817 7.8% Services (3) 7,661 2.3% 3,051 1.3% Other Products 278 0.1% 586 0.3% Total Sales $336,614 $229,554 Product Operating Income (Loss): Consumer Products: Consumer Storage Solutions (1) $2,500 $(9,335) Zip (4) 2,860 3,384 Business Products: REV 486 (6,940) Network Storage Systems (2) 5 1,574 Services (3) (1,455) (290) Other Products (6) (7) 3,598 875 Non-Restructuring charges (5) - (995) Restructuring reversals (charges) 344 (3,529) Operating Income (Loss) $8,338 $(15,256) (1) Consumer Storage Solutions is comprised of hard disk, optical, floppy and flash drives. (2) Includes Network HDD drives beginning in Q2 2006 - previously classified in Consumer Storage Solutions. (3) Includes the System Integration and Managed Services businesses of CSCI, Inc. Also includes miscellaneous Iomega services previously classified in Other Products. (4) 2007 and 2006 includes $3.0 million and $8.7 million of goodwill impairment charges, respectively. (5) Non-restructuring, severance related costs associated with prior CEO and recorded in SG&A in above income statement. (6) 2007 and 2006 includes $0.5 million and $0.8 million of income associated with the sale of old patents, respectively. (7) 2007 also includes a pre-tax, cash benefit of $3.5 million related to a prior license of intellectual property. IOMEGA CORPORATION CONDENSED BALANCE SHEETS (In thousands) (Unaudited) Dec. 31, Sept. 30, Dec. 31, 2007 2007 2006 ASSETS: Cash and cash equivalents $53,559 $53,356 $56,617 Restricted cash 93 92 88 Temporary investments 9,961 15,919 11,443 Total cash 63,613 69,367 68,148 Trade receivables, net 41,101 48,016 30,418 Inventories 79,883 68,183 42,593 Deferred income taxes 2,175 1,997 2,747 Other current assets 2,902 2,729 3,401 Total Current Assets 189,674 190,292 147,307 Property and equipment, net 3,867 4,458 6,553 Long-term cash investments 1,000 - - Intangible and other assets 10,667 10,719 13,554 $205,208 $205,469 $167,414 LIABILITIES AND STOCKHOLDERS' EQUITY: Accounts payable $61,951 $72,145 $35,105 Income taxes payable 3,368 2,002 454 Other current liabilities 27,862 26,183 32,475 Total Current Liabilities 93,181 100,330 68,034 Deferred income taxes 8,220 7,829 9,573 Long-term liabilities 2,652 2,891 - Stockholders' equity 101,155 94,419 89,807 $205,208 $205,469 $167,414 CONDENSED STATEMENTS OF CASH FLOWS - YTD (In thousands) (Unaudited) For the Twelve Months Ended Dec. 31, Dec. 31, 2007 2006 Cash Flows from Operating Activities: Net Income (Loss) $10,055 $(8,843) Revenue and Expense Adjustments (1) 8,102 8,546 18,157 (297) Changes in Assets and Liabilities: Trade receivables (11,972) (279) Restricted cash (5) 168 Inventories (39,313) (14,980) Other current assets 499 1,604 Accounts payable 26,846 (593) Accrued restructuring (1,873) (2,533) Other current liabilities and income taxes 4,233 (6,042) Net cash used in operating activities (3,428) (22,952) Cash Flows from Investing Activities: Purchases of property and equipment (573) (1,906) Proceeds from sales of assets 144 191 Additional payments associated with CSCI, Inc. acquisition (120) - Purchase of CSCI, Inc. (net of $183,000 cash) - (4,339) Sales of temporary investments 24,419 30,856 Purchases of temporary investments (23,679) (17,080) Proceeds from ByteTaxi Inc. escrow fund - 446 Net change in other assets and other liabilities 51 7 Net cash provided by investing activities 242 8,175 Cash Flows from Financing Activities: Proceeds from sales of Common Stock 106 430 Tax benefit from dispositions of employee stock 22 21 Net cash provided by financing activities 128 451 Net Decrease in Cash and Cash Equivalents (3,058) (14,326) Cash and Cash Equivalents at Beginning of Period 56,617 70,943 Cash and Cash Equivalents at End of Period $53,559 $56,617 (1) 2007 and 2006 includes $3.0 million and $8.7 million of non-cash, goodwill impairment charges, respectively.
SOURCE Iomega Corporation