Iomega Reports First-Quarter 2001 Profit of $9.8 Million

Apr 19, 2001, 01:00 ET from Iomega Corporation

    ROY, Utah, April 19 /PRNewswire/ -- Iomega Corporation (NYSE:   IOM) today
 reported net income of $9.8 million, or $0.04 per diluted share, for the first
 quarter ended April 1, 2001.  This net income compares to first quarter 2000
 net income of $51.8 million, or $0.19 per diluted share, which included
 $20.1 million, or $.07 per diluted share, attributable to certain tax
 benefits.  First quarter 2001 revenue of $278.2 million decreased
 $66.7 million from $344.9 million in the first quarter 2000, due to lower
 Zip(R) and Jaz(R) revenue partially offset by higher CD-RW revenue.
     "I am pleased to report our sixth consecutive profitable quarter, although
 we have not met our goal of achieving profitable revenue growth," said
 Bruce Albertson, president and CEO.  "First quarter 2001 revenue was down
 considerably from the fourth quarter 2000; however, we were able to control
 costs and actually increased pre-tax income by 5 percent compared to the
 fourth quarter of 2000.  While there are challenges ahead, including the
 worldwide economic uncertainty, we see many growth opportunities.  These
 include leveraging and growing our established base of over 42 million Zip
 drives and 260 million Zip disks, revitalizing international markets, branding
 of sourced products, and upcoming new product releases.  We believe that our
 newest products, HipZip, FotoShow, Predator, QuikSync software, CompactFlash
 and SmartMedia, along with our planned future products, DataSafe network
 attached storage servers, the Peerless drive system and the 100MB PocketZip
 drive, demonstrate Iomega's commitment to develop growth opportunities in new
 and existing markets."
     First quarter 2001 Zip product profit margin (PPM) of $54.9 million
 decreased $33.1 million from the first quarter of 2000, as Zip revenue
 decreased $74.0 million.  The Zip PPM decrease primarily reflects lower prices
 and lower disk and aftermarket drive shipments.  Cumulative worldwide
 shipments (including licensee shipments) now exceed 42 million Zip drives and
 260 million Zip disks.
     First quarter 2001 Jaz PPM of $9.7 million decreased $2.8 million from the
 first quarter of 2000, as Jaz revenue decreased $25.3 million.  The Jaz PPM
 decrease primarily reflects lower shipments of both disks and drives.
     The first quarter 2001 CD-RW product loss of $5.9 million increased from
 near break-even in the first quarter of 2000, due primarily to higher
 manufacturing and operating expenses associated with adding additional drives
 and competitive pricing.  Revenue in the first quarter 2001 of $44.5 million
 increased $33.7 million from the first quarter of 2000 as Iomega introduced
 additional drives, including the Predator(TM) CD-RW drive, to its product line
 from the single drive offered in the first quarter of 2000.
     The first quarter 2001 PocketZip(TM) product loss of $8.1 million
 represented an improvement of $8.2 million over the first quarter of 2000,
 primarily due to $7.4 million in charges taken in the first quarter of 2000 to
 reflect estimates of the net realizable value of inventory and equipment.
 First quarter 2001 PocketZip revenue of $1.3 million decreased $0.8 million
 from the first quarter of 2000.
     The cash, cash equivalents, and temporary investments balance was
 $372.9 million with no long-term debt at April 1, 2001.  Iomega did not
 repurchase any common stock during the first quarter of 2001.
     Please refer to the attached supplemental information schedule for unit
 information by product line.
 
     AS PREVIOUSLY ANNOUNCED, THE COMPANY WILL HOLD A CONFERENCE CALL BEGINNING
 AT 4:30 EST TODAY TO DISCUSS IOMEGA'S FINANCIAL RESULTS.  A SIMULTANEOUS
 WEBCAST OF THE CONFERENCE CALL AND REPLAYS FOR TWO WEEKS WILL BE AVAILABLE AT
 http://www.iomega.com/about/investor.
 
     About Iomega
     Iomega Corporation (NYSE:   IOM) manufactures and markets the award-winning
 Zip(R), Jaz(R) and PocketZip(TM) drives and disks, the HipZip(TM) digital
 audio player, the FotoShow(TM) digital image center, LifeWorks(TM) software,
 and QuikSync(TM) software; Iomega also markets CD-RW drives, CompactFlash(TM)
 and SmartMedia(TM) memory cards, and the Iomega Microdrive(TM) miniature hard
 drive.  Iomega's products help people to save, share, manage and create
 important information such as Internet downloads, audio files, personal
 photographs, spreadsheets, and slides, while protecting that content from
 viruses and hackers.  Used in homes, businesses, government and educational
 facilities and by creative professionals everywhere, Iomega storage solutions
 are the enabling technologies preferred by millions.  The Company can be
 reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at
 http://www.iomega.com.
 
     NOTE: The statements contained in this release regarding continued
 profitability, leveraging the established Zip base, revitalization of
 international markets, branding of sourced products, upcoming new product
 release, planned future products, and all 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 forward-looking statements
 are based upon information available to Iomega as of the date hereof, and
 Iomega disclaims any intention or obligation to update any such
 forward-looking statements.  Actual results could differ materially from the
 current expectations.  Factors that could cause or contribute to such
 differences include the level of retail and OEM market acceptance of and
 demand for the Company's existing and new products, general market demand for
 PCs and consumer electronics products, the Company's success in timely
 producing and marketing its products, the Company's ability to maintain
 stringent quality assurance standards and enhanced customer service,
 availability of critical product components, manufacturing and inventory
 issues, intellectual property rights, competition, litigation, general
 economic and/or industry-specific conditions and the other risks and
 uncertainties identified in the reports filed from time to time by Iomega with
 the U.S. Securities and Exchange Commission, including Iomega's Annual Report
 on Form 10-K for the year ended December 31, 2000.
 
     Copyright(C) 2001 Iomega Corporation.  All rights reserved.  Iomega, Zip,
 Jaz, PocketZip, HipZip, FotoShow, Predator, QuikSync, LifeWorks, Club Iomega,
 Peerless and iomegadirect are either registered trademarks or trademarks of
 Iomega Corporation in the United States and/or other countries.  Microdrive is
 a trademark of IBM Corporation and is used under license by Iomega
 Corporation.  Certain other product names, brand names and company names may
 be trademarks or designations of their respective owners.
 
 
            The information provided below is also available at the
        following location: www.iomega.com/about/investor/q101_pres.pdf.
      Investors and others without Internet access may contact the company
        at 1-801-332-3585 or by e-mail to investorrelations@iomega.com.
 
 
                               IOMEGA CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - QTD
                     (In thousands, except per share data)
                                     (Unaudited)
 
                                            For the Three Months Ended
                                       April 1,     March 26,      Dec. 31,
                                         2001          2000          2000
 
     SALES                             $278,175      $344,897     $331,147
     COST OF SALES                      192,490       216,990      220,165
       Gross margin                      85,685       127,907      110,982
 
     OPERATING EXPENSES:
       Selling, general and
        administrative                   60,681        65,246       84,351
       Research and development          14,076        11,130       16,238
         Total operating expenses        74,757        76,376      100,589
     OPERATING INCOME                    10,928        51,531       10,393
       Interest and other
        income (expense), net             5,261         1,233        4,968
     INCOME BEFORE INCOME TAXES          16,189        52,764       15,361
 
     PROVISION FOR INCOME TAXES          (6,357)      (21,044)      (7,261)
     DECREASE IN TAX
      VALUATION ALLOWANCE                     0        20,106       13,914
     NET INCOME                          $9,832       $51,826      $22,014
 
     NET INCOME PER BASIC
      COMMON SHARE                        $0.04         $0.19        $0.08
     NET INCOME PER DILUTED
      COMMON SHARE                        $0.04         $0.19        $0.08
     COMMON SHARES OUTSTANDING          270,158       270,448      270,259
     COMMON SHARES ASSUMING
      DILUTION                          270,429       281,235      273,575
 
 
                      PRODUCT REVENUES & PROFIT MARGINS - QTD
                                   (In thousands)
                                    (Unaudited)
 
                                           For the Three Months Ended
                                       April 1,     March 26,      Dec. 31,
                                         2001          2000          2000
 
     Revenues:
       Zip                             $204,485      $278,517     $224,788
       Jaz                               26,561        51,847       37,204
       Iomega CD-RW                      44,484        10,778       53,962
       PocketZip                          1,286         2,054       12,010
       Other                              1,359         1,701        3,183
         Total Revenue                 $278,175      $344,897     $331,147
 
     Product Profit Margin (Loss):
       Zip                              $54,859       $87,941      $51,032
       Jaz                                9,663        12,463        9,998
       Iomega CD-RW                      (5,904)         (104)      (4,297)
       PocketZip                         (8,053)      (16,269)     (10,080)
       Other                             (6,345)       (2,363)      (1,930)
         Total Product
          Profit Margin                  44,220        81,668       44,723
 
     Common:
       General corporate expenses       (33,292)      (30,137)     (34,330)
       Interest and other
        income (expense), net             5,261         1,233        4,968
         Income Before Income Taxes     $16,189       $52,764      $15,361
 
 
                                 IOMEGA CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
                                    (Unaudited)
 
                                       April 1,     March 26,      Dec. 31,
                                         2001          2000          2000
 
     ASSETS:
       Cash and cash equivalents       $272,480      $190,927     $255,572
       Temporary investments            100,438        82,502      122,347
       Trade receivables (net)          163,440       160,340      139,461
       Inventories                       92,495        84,588      102,497
       Other current assets              59,551        45,974       62,530
         Total current assets           688,404       564,331      682,407
 
       Fixed assets (net)                97,846       120,665      101,589
       Intangible and other assets       30,184        32,468       31,443
                                       $816,434      $717,464     $815,439
 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
       Current lease obligations         $2,155        $4,784       $2,311
       Accounts payable                 120,128       111,020      108,168
       Convertible notes                      0        45,505            0
       Other current liabilities        157,405       180,498      181,735
         Total current liabilities      279,688       341,807      292,214
 
       Deferred taxes and other
        long-term liabilities            37,689         1,058       34,685
       Stockholders' equity             499,057       374,599      488,540
                                       $816,434      $717,464     $815,439
 
 
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - YTD
                                 (In thousands)
                                  (Unaudited)
 
                                                  For the Three Months Ended
                                                   April 1,         March 26,
                                                     2001             2000
 
     Cash Flows from Operating Activities:
       Net income                                   $9,832           $51,826
       Non-cash revenue and expense adjustments     20,272            24,137
                                                    30,104            75,963
 
       Changes in Assets and Liabilities:
         Trade receivables                         (24,255)           29,620
         Inventories                                10,002            10,038
         Other current assets                        1,261             4,812
         Accounts payable                           11,960           (24,595)
         Other current liabilities                 (24,292)          (27,786)
           Net cash provided by
            operating activities                     4,780            68,052
     Cash Flows from Investing Activities:
       Purchase of property, plant and equipment    (8,357)           (5,867)
       Sale of temporary investments                70,999            30,559
       Purchase of temporary investments           (49,090)          (74,852)
       Net change in other assets/liabilities       (1,717)              251
           Net cash provided by (used in)
            investing activities                    11,835           (49,909)
     Cash Flows from Financing Activities:
       Proceeds from sale of Common Stock              606             1,144
       Payments on capitalized lease obligations      (313)           (1,066)
           Net cash provided by
            financing activities                       293                78
     Net Increase in Cash and Cash Equivalents      16,908            18,221
     Cash and Cash Equivalents
      at Beginning of Period                       255,572           172,706
     Cash and Cash Equivalents
      at End of Period                            $272,480          $190,927
 
 
                               IOMEGA CORPORATION
                            Supplemental Information
                               First Quarter 2001
                                  (Unaudited)
 
     Revenue by
      Region
     ($Millions)        Q1        Q1   Year/Year    Q4     Qtr/Qtr
                       2001      2000  Change ($)  2000  Change ($)
 
     Americas          $191      $218    ($27)     $214    ($23)
     Europe             $68       $95    ($27)      $96    ($28)
     Asia               $19       $32    ($13)      $21     ($2)
     Total
      Revenue          $278      $345    ($67)     $331    ($53)
 
 
     Regional
      Revenue as
      a Percentage
      of Total          Q1        Q1                 Q4
      Revenue          2001      2000               2000
 
     Americas           69%       63%               65%
     Europe             24%       28%               29%
     Asia                7%        9%                6%
     Total
      Revenue          100%      100%              100%
 
 
     Product
      Platform                         (Thousands)
      Information     Q1       Q2       Q3      Q4        Q1      Cumulative
                     2000     2000     2000    2000      2001       Shipped
 
     Iomega Zip
      Drive Units
      (including
      FotoShow)      1,884    1,647   1,674    1,806    1,481
     Iomega Unit
      Change
      Yr/Yr          (21%)    (27%)   (30%)    (33%)    (21%)
     Iomega OEM        695      826     773      748      639
     OEM Unit
      Change
      Yr/Yr          (39%)    (30%)   (42%)    (42%)     (8%)
     Iomega OEM %      37%      50%     46%      41%      43%
     Licensee
      Units (OEM)      387      270     221     330*     160*
     Total Zip
      Drive Units    2,271    1,917   1,895   2,136*   1,641*    >42 million
     Zip Disk
      Units         15,291   14,302  14,804   10,389   11,732   >260 million
     Unit Change
      Yr/Yr           (5%)    (17%)      6%    (39%)    (23%)
 
     Jaz Drive
      Units             75       68      67       66       43   >2.8 million
     Unit Change
      Yr/Yr          (36%)    (44%)   (39%)    (38%)    (43%)
     Jaz Disk
      Units            443      294     272      359      231
     Unit Change
      Yr/Yr             5%    (40%)   (50%)    (30%)    (48%)  >10.7 million
 
     Iomega CD-RW
      Drive Units       52      120     193      346      270   >1.1 million
     Unit Growth
      Yr/Yr            N/A      N/A    264%     264%     419%
 
     PocketZip
      Drive Units       14       26      34       86       14  >260 thousand
     Unit Growth
      Yr/Yr           -42%     550%      3%     231%       0%
     OEM %             37%      28%     51%       0%       0%
     PocketZip
      Disk Units       154       72      85      144      101  >600 thousand
     Unit Growth
      Yr/Yr           130%     227%    (8%)      N/A    (34%)
 
     * Estimated for the period
 
 
     For further information, please contact:  Analysts/Investors, Jim Recob,
 801-332-4430, recob@iomega.com, or Media, Chris Romoser, 801-332-3678,
 romoser@iomega.com, both of Iomega Corporation.
 
 

SOURCE Iomega Corporation
    ROY, Utah, April 19 /PRNewswire/ -- Iomega Corporation (NYSE:   IOM) today
 reported net income of $9.8 million, or $0.04 per diluted share, for the first
 quarter ended April 1, 2001.  This net income compares to first quarter 2000
 net income of $51.8 million, or $0.19 per diluted share, which included
 $20.1 million, or $.07 per diluted share, attributable to certain tax
 benefits.  First quarter 2001 revenue of $278.2 million decreased
 $66.7 million from $344.9 million in the first quarter 2000, due to lower
 Zip(R) and Jaz(R) revenue partially offset by higher CD-RW revenue.
     "I am pleased to report our sixth consecutive profitable quarter, although
 we have not met our goal of achieving profitable revenue growth," said
 Bruce Albertson, president and CEO.  "First quarter 2001 revenue was down
 considerably from the fourth quarter 2000; however, we were able to control
 costs and actually increased pre-tax income by 5 percent compared to the
 fourth quarter of 2000.  While there are challenges ahead, including the
 worldwide economic uncertainty, we see many growth opportunities.  These
 include leveraging and growing our established base of over 42 million Zip
 drives and 260 million Zip disks, revitalizing international markets, branding
 of sourced products, and upcoming new product releases.  We believe that our
 newest products, HipZip, FotoShow, Predator, QuikSync software, CompactFlash
 and SmartMedia, along with our planned future products, DataSafe network
 attached storage servers, the Peerless drive system and the 100MB PocketZip
 drive, demonstrate Iomega's commitment to develop growth opportunities in new
 and existing markets."
     First quarter 2001 Zip product profit margin (PPM) of $54.9 million
 decreased $33.1 million from the first quarter of 2000, as Zip revenue
 decreased $74.0 million.  The Zip PPM decrease primarily reflects lower prices
 and lower disk and aftermarket drive shipments.  Cumulative worldwide
 shipments (including licensee shipments) now exceed 42 million Zip drives and
 260 million Zip disks.
     First quarter 2001 Jaz PPM of $9.7 million decreased $2.8 million from the
 first quarter of 2000, as Jaz revenue decreased $25.3 million.  The Jaz PPM
 decrease primarily reflects lower shipments of both disks and drives.
     The first quarter 2001 CD-RW product loss of $5.9 million increased from
 near break-even in the first quarter of 2000, due primarily to higher
 manufacturing and operating expenses associated with adding additional drives
 and competitive pricing.  Revenue in the first quarter 2001 of $44.5 million
 increased $33.7 million from the first quarter of 2000 as Iomega introduced
 additional drives, including the Predator(TM) CD-RW drive, to its product line
 from the single drive offered in the first quarter of 2000.
     The first quarter 2001 PocketZip(TM) product loss of $8.1 million
 represented an improvement of $8.2 million over the first quarter of 2000,
 primarily due to $7.4 million in charges taken in the first quarter of 2000 to
 reflect estimates of the net realizable value of inventory and equipment.
 First quarter 2001 PocketZip revenue of $1.3 million decreased $0.8 million
 from the first quarter of 2000.
     The cash, cash equivalents, and temporary investments balance was
 $372.9 million with no long-term debt at April 1, 2001.  Iomega did not
 repurchase any common stock during the first quarter of 2001.
     Please refer to the attached supplemental information schedule for unit
 information by product line.
 
     AS PREVIOUSLY ANNOUNCED, THE COMPANY WILL HOLD A CONFERENCE CALL BEGINNING
 AT 4:30 EST TODAY TO DISCUSS IOMEGA'S FINANCIAL RESULTS.  A SIMULTANEOUS
 WEBCAST OF THE CONFERENCE CALL AND REPLAYS FOR TWO WEEKS WILL BE AVAILABLE AT
 http://www.iomega.com/about/investor.
 
     About Iomega
     Iomega Corporation (NYSE:   IOM) manufactures and markets the award-winning
 Zip(R), Jaz(R) and PocketZip(TM) drives and disks, the HipZip(TM) digital
 audio player, the FotoShow(TM) digital image center, LifeWorks(TM) software,
 and QuikSync(TM) software; Iomega also markets CD-RW drives, CompactFlash(TM)
 and SmartMedia(TM) memory cards, and the Iomega Microdrive(TM) miniature hard
 drive.  Iomega's products help people to save, share, manage and create
 important information such as Internet downloads, audio files, personal
 photographs, spreadsheets, and slides, while protecting that content from
 viruses and hackers.  Used in homes, businesses, government and educational
 facilities and by creative professionals everywhere, Iomega storage solutions
 are the enabling technologies preferred by millions.  The Company can be
 reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at
 http://www.iomega.com.
 
     NOTE: The statements contained in this release regarding continued
 profitability, leveraging the established Zip base, revitalization of
 international markets, branding of sourced products, upcoming new product
 release, planned future products, and all 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 forward-looking statements
 are based upon information available to Iomega as of the date hereof, and
 Iomega disclaims any intention or obligation to update any such
 forward-looking statements.  Actual results could differ materially from the
 current expectations.  Factors that could cause or contribute to such
 differences include the level of retail and OEM market acceptance of and
 demand for the Company's existing and new products, general market demand for
 PCs and consumer electronics products, the Company's success in timely
 producing and marketing its products, the Company's ability to maintain
 stringent quality assurance standards and enhanced customer service,
 availability of critical product components, manufacturing and inventory
 issues, intellectual property rights, competition, litigation, general
 economic and/or industry-specific conditions and the other risks and
 uncertainties identified in the reports filed from time to time by Iomega with
 the U.S. Securities and Exchange Commission, including Iomega's Annual Report
 on Form 10-K for the year ended December 31, 2000.
 
     Copyright(C) 2001 Iomega Corporation.  All rights reserved.  Iomega, Zip,
 Jaz, PocketZip, HipZip, FotoShow, Predator, QuikSync, LifeWorks, Club Iomega,
 Peerless and iomegadirect are either registered trademarks or trademarks of
 Iomega Corporation in the United States and/or other countries.  Microdrive is
 a trademark of IBM Corporation and is used under license by Iomega
 Corporation.  Certain other product names, brand names and company names may
 be trademarks or designations of their respective owners.
 
 
            The information provided below is also available at the
        following location: www.iomega.com/about/investor/q101_pres.pdf.
      Investors and others without Internet access may contact the company
        at 1-801-332-3585 or by e-mail to investorrelations@iomega.com.
 
 
                               IOMEGA CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - QTD
                     (In thousands, except per share data)
                                     (Unaudited)
 
                                            For the Three Months Ended
                                       April 1,     March 26,      Dec. 31,
                                         2001          2000          2000
 
     SALES                             $278,175      $344,897     $331,147
     COST OF SALES                      192,490       216,990      220,165
       Gross margin                      85,685       127,907      110,982
 
     OPERATING EXPENSES:
       Selling, general and
        administrative                   60,681        65,246       84,351
       Research and development          14,076        11,130       16,238
         Total operating expenses        74,757        76,376      100,589
     OPERATING INCOME                    10,928        51,531       10,393
       Interest and other
        income (expense), net             5,261         1,233        4,968
     INCOME BEFORE INCOME TAXES          16,189        52,764       15,361
 
     PROVISION FOR INCOME TAXES          (6,357)      (21,044)      (7,261)
     DECREASE IN TAX
      VALUATION ALLOWANCE                     0        20,106       13,914
     NET INCOME                          $9,832       $51,826      $22,014
 
     NET INCOME PER BASIC
      COMMON SHARE                        $0.04         $0.19        $0.08
     NET INCOME PER DILUTED
      COMMON SHARE                        $0.04         $0.19        $0.08
     COMMON SHARES OUTSTANDING          270,158       270,448      270,259
     COMMON SHARES ASSUMING
      DILUTION                          270,429       281,235      273,575
 
 
                      PRODUCT REVENUES & PROFIT MARGINS - QTD
                                   (In thousands)
                                    (Unaudited)
 
                                           For the Three Months Ended
                                       April 1,     March 26,      Dec. 31,
                                         2001          2000          2000
 
     Revenues:
       Zip                             $204,485      $278,517     $224,788
       Jaz                               26,561        51,847       37,204
       Iomega CD-RW                      44,484        10,778       53,962
       PocketZip                          1,286         2,054       12,010
       Other                              1,359         1,701        3,183
         Total Revenue                 $278,175      $344,897     $331,147
 
     Product Profit Margin (Loss):
       Zip                              $54,859       $87,941      $51,032
       Jaz                                9,663        12,463        9,998
       Iomega CD-RW                      (5,904)         (104)      (4,297)
       PocketZip                         (8,053)      (16,269)     (10,080)
       Other                             (6,345)       (2,363)      (1,930)
         Total Product
          Profit Margin                  44,220        81,668       44,723
 
     Common:
       General corporate expenses       (33,292)      (30,137)     (34,330)
       Interest and other
        income (expense), net             5,261         1,233        4,968
         Income Before Income Taxes     $16,189       $52,764      $15,361
 
 
                                 IOMEGA CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
                                    (Unaudited)
 
                                       April 1,     March 26,      Dec. 31,
                                         2001          2000          2000
 
     ASSETS:
       Cash and cash equivalents       $272,480      $190,927     $255,572
       Temporary investments            100,438        82,502      122,347
       Trade receivables (net)          163,440       160,340      139,461
       Inventories                       92,495        84,588      102,497
       Other current assets              59,551        45,974       62,530
         Total current assets           688,404       564,331      682,407
 
       Fixed assets (net)                97,846       120,665      101,589
       Intangible and other assets       30,184        32,468       31,443
                                       $816,434      $717,464     $815,439
 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
       Current lease obligations         $2,155        $4,784       $2,311
       Accounts payable                 120,128       111,020      108,168
       Convertible notes                      0        45,505            0
       Other current liabilities        157,405       180,498      181,735
         Total current liabilities      279,688       341,807      292,214
 
       Deferred taxes and other
        long-term liabilities            37,689         1,058       34,685
       Stockholders' equity             499,057       374,599      488,540
                                       $816,434      $717,464     $815,439
 
 
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - YTD
                                 (In thousands)
                                  (Unaudited)
 
                                                  For the Three Months Ended
                                                   April 1,         March 26,
                                                     2001             2000
 
     Cash Flows from Operating Activities:
       Net income                                   $9,832           $51,826
       Non-cash revenue and expense adjustments     20,272            24,137
                                                    30,104            75,963
 
       Changes in Assets and Liabilities:
         Trade receivables                         (24,255)           29,620
         Inventories                                10,002            10,038
         Other current assets                        1,261             4,812
         Accounts payable                           11,960           (24,595)
         Other current liabilities                 (24,292)          (27,786)
           Net cash provided by
            operating activities                     4,780            68,052
     Cash Flows from Investing Activities:
       Purchase of property, plant and equipment    (8,357)           (5,867)
       Sale of temporary investments                70,999            30,559
       Purchase of temporary investments           (49,090)          (74,852)
       Net change in other assets/liabilities       (1,717)              251
           Net cash provided by (used in)
            investing activities                    11,835           (49,909)
     Cash Flows from Financing Activities:
       Proceeds from sale of Common Stock              606             1,144
       Payments on capitalized lease obligations      (313)           (1,066)
           Net cash provided by
            financing activities                       293                78
     Net Increase in Cash and Cash Equivalents      16,908            18,221
     Cash and Cash Equivalents
      at Beginning of Period                       255,572           172,706
     Cash and Cash Equivalents
      at End of Period                            $272,480          $190,927
 
 
                               IOMEGA CORPORATION
                            Supplemental Information
                               First Quarter 2001
                                  (Unaudited)
 
     Revenue by
      Region
     ($Millions)        Q1        Q1   Year/Year    Q4     Qtr/Qtr
                       2001      2000  Change ($)  2000  Change ($)
 
     Americas          $191      $218    ($27)     $214    ($23)
     Europe             $68       $95    ($27)      $96    ($28)
     Asia               $19       $32    ($13)      $21     ($2)
     Total
      Revenue          $278      $345    ($67)     $331    ($53)
 
 
     Regional
      Revenue as
      a Percentage
      of Total          Q1        Q1                 Q4
      Revenue          2001      2000               2000
 
     Americas           69%       63%               65%
     Europe             24%       28%               29%
     Asia                7%        9%                6%
     Total
      Revenue          100%      100%              100%
 
 
     Product
      Platform                         (Thousands)
      Information     Q1       Q2       Q3      Q4        Q1      Cumulative
                     2000     2000     2000    2000      2001       Shipped
 
     Iomega Zip
      Drive Units
      (including
      FotoShow)      1,884    1,647   1,674    1,806    1,481
     Iomega Unit
      Change
      Yr/Yr          (21%)    (27%)   (30%)    (33%)    (21%)
     Iomega OEM        695      826     773      748      639
     OEM Unit
      Change
      Yr/Yr          (39%)    (30%)   (42%)    (42%)     (8%)
     Iomega OEM %      37%      50%     46%      41%      43%
     Licensee
      Units (OEM)      387      270     221     330*     160*
     Total Zip
      Drive Units    2,271    1,917   1,895   2,136*   1,641*    >42 million
     Zip Disk
      Units         15,291   14,302  14,804   10,389   11,732   >260 million
     Unit Change
      Yr/Yr           (5%)    (17%)      6%    (39%)    (23%)
 
     Jaz Drive
      Units             75       68      67       66       43   >2.8 million
     Unit Change
      Yr/Yr          (36%)    (44%)   (39%)    (38%)    (43%)
     Jaz Disk
      Units            443      294     272      359      231
     Unit Change
      Yr/Yr             5%    (40%)   (50%)    (30%)    (48%)  >10.7 million
 
     Iomega CD-RW
      Drive Units       52      120     193      346      270   >1.1 million
     Unit Growth
      Yr/Yr            N/A      N/A    264%     264%     419%
 
     PocketZip
      Drive Units       14       26      34       86       14  >260 thousand
     Unit Growth
      Yr/Yr           -42%     550%      3%     231%       0%
     OEM %             37%      28%     51%       0%       0%
     PocketZip
      Disk Units       154       72      85      144      101  >600 thousand
     Unit Growth
      Yr/Yr           130%     227%    (8%)      N/A    (34%)
 
     * Estimated for the period
 
 
     For further information, please contact:  Analysts/Investors, Jim Recob,
 801-332-4430, recob@iomega.com, or Media, Chris Romoser, 801-332-3678,
 romoser@iomega.com, both of Iomega Corporation.
 
 SOURCE  Iomega Corporation