IOMEGA CORPORATION CONDENSED STATEMENTS of OPERATIONS - QTD (In Thousands, Except Per Share Data) (Unaudited) for the Three Months Ended Sept
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IOMEGA CORPORATION CONDENSED STATEMENTS OF OPERATIONS - QTD (In thousands, except per share data) (Unaudited) For the Three Months Ended Sept. 30, Sept. 24, July 1, 2001 % 2000 % 2001 % REVENUE $182,137 100.0% $320,501 100.0% $184,051 100.0% COST OF SALES (1) 149,859 82.3% 189,717 59.2% 176,733 96.0% Gross margin 32,278 17.7% 130,784 40.8% 7,318 4.0% OPERATING EXPENSES: Selling, general and administrative 60,043 33.0% 68,845 21.5% 55,233 30.0% Research and development 12,476 6.8% 15,891 5.0% 13,241 7.2% Restructuring charges (reversals) 33,266 18.3% (2,317) (0.7%) 1,086 0.6% Total operating expenses 105,785 58.1% 82,419 25.7% 69,560 37.8% OPERATING INCOME (LOSS) (73,507) (40.4%) 48,365 15.1% (62,242) (33.8%) Interest and other income and expense, net 3,203 1.8% 4,662 1.5% 4,068 2.2% INCOME (LOSS) BEFORE INCOME TAXES(70,304) (2) (3) (38.6%) 53,027 16.5% (58,174) (31.6%) BENEFIT (PROVISION) FOR INCOME TAXES27,859 15.3% (18,505) (5.8%) 22,319 12.1% (INCREASE) DECREASE IN TAX VALUATION ALLOWANCE (28,707) (15.8%) 20,898 6.5% 0 0.0% NET INCOME (LOSS) ($71,152) (39.1%) $55,420 17.3% ($35,855) (19.5%) BASIC EARNINGS (LOSS) PER SHARE ($1.32) $1.02 ($0.66) DILUTED EARNINGS (LOSS) PER SHARE ($1.32) $1.00 ($0.66) COMMON SHARES OUTSTANDING 53,848 54,170 54,042 COMMON SHARES ASSUMING DILUTION 53,848 56,013 54,042 (1) Includes $25.2 million in Q3 2001 and $44.9 million in Q2 2001 of non-restructuring charges reflecting writedowns of inventory and equipment and other assets and charges associated with various contractual arrangements and supplier commitments. (2) Q3 2001 includes $31.1 million of non-restructuring charges and $33.3 million of restructuring charges. (3) Q2 2001 includes $46.0 million of non-restructuring charges and $1.1 million of restructuring charges. PRODUCT REVENUES & PROFIT MARGINS - QTD (In thousands) (Unaudited) For the Three Months Ended Sept. 30, Sept. 24, July 1, 2001 % 2000 % 2001 % Revenue: Zip $142,845 78.4% $247,388 77.2% $143,618 78.0% Jaz 13,647 7.5% 34,885 10.9% 13,275 7.2% CD-RW 17,607 9.7% 34,383 10.7% 18,258 9.9% PocketZip 2,063 1.1% 3,029 0.9% 2,319 1.3% Other 5,975 3.3% 816 0.3% 6,581 3.6% Total Revenue $182,137 $320,501 $184,051 Product Profit Margin (Loss): Zip $27,936 $87,753 $31,358 Jaz 3,490 9,824 2,502 CD-RW (17,022) 2,079 (20,983) PocketZip (5,335) (4,913) (23,024) Other (20,320) (1,994) (21,246) Total Product Profit Margin (Loss) (1) (2)(11,251) 92,749 (31,393) Common: General corporate expenses (28,990) (46,701) (29,763) Restructuring (charges) reversals (33,266) 2,317 (1,086) Interest and other income and expense, net 3,203 4,662 4,068 Income (Loss) Before Income Taxes ($70,304) $53,027 ($58,174) (1) Q3 2001 includes $25.2 million of non-restructuring charges reflecting writedowns of inventory and equipment and other assets and charges associated with various contractual arrangements. These charges include $7.5 million for Zip, $7.5 million for CD-RW, $3.6 million for PocketZip and $6.6 million for Other. (2) Q2 2001 includes $44.9 million of non-restructuring charges reflecting writedowns of inventory and equipment and loss accruals for related supplier purchase commitments. These charges include $4.5 million for Zip, $10.0 million for CD-RW $17.9 million for PocketZip and $12.5 million for Other. IOMEGA CORPORATION CONDENSED STATEMENTS OF OPERATIONS - YTD (In thousands, except per share data) (Unaudited) For the Nine Months Ended Sept. 30, Sept. 24, 2001 % 2000 % REVENUE $644,363 100.0% $969,037 100.0% COST OF SALES (1) (2) 519,082 80.6% 590,335 60.9% Gross margin 125,281 19.4% 378,702 39.1% OPERATING EXPENSES: Selling, general and administrative 175,957 27.3% 203,345 21.0% Research and development 39,793 6.2% 42,339 4.4% Restructuring charges (reversals) 34,352 5.3% (4,814) (0.5%) Total operating expenses 250,102 38.8% 240,870 24.9% OPERATING INCOME (LOSS) (124,821) (19.4%) 137,832 14.2% Interest and other income and expense, net 12,532 1.9% 9,125 0.9% INCOME (LOSS) BEFORE INCOME TAXES(112,289) (2) (3) (17.4%) 146,957 15.2% BENEFIT (PROVISION) FOR INCOME TAXES44,243 6.9% (57,986) (6.0%) (INCREASE) DECREASE IN TAX VALUATION ALLOWANCE (29,129) (4.5%) 58,645 6.1% NET INCOME (LOSS) ($97,175) (15.1%) $147,616 15.2% BASIC EARNINGS (LOSS) PER SHARE ($1.80) $2.73 DILUTED EARNINGS (LOSS) PER SHARE ($1.80) $2.66 COMMON SHARES OUTSTANDING 53,974 54,129 COMMON SHARES ASSUMING DILUTION 53,974 56,296 (1) The nine months of 2001 includes $70.1 million of non-restructuring charges reflecting writedowns of inventory and equipment loss accruals for related supplier purchase commitments recorded in the second and third quarters. (2) The nine months of 2000 includes $7.4 million of non-restructuring charges associated with valuation of inventories and equipment and accruals for supplier purchase commitments recorded in the first quarter. (3) The nine months of 2001 includes $77.1 million of non-restructuring charges and $34.4 million of restructuring charges recorded in the second and third quarters. PRODUCT REVENUES & PROFIT MARGINS - YTD (In thousands) (Unaudited) For the Nine Months Ended Sept. 30, Sept. 24, 2001 % 2000 % Revenue: Zip $490,290 76.1% $763,195 78.8% Jaz 53,483 8.3% 124,615 12.9% CD-RW 80,349 12.5% 69,746 7.2% PocketZip 5,668 0.9% 8,292 0.9% Other 14,573 2.3% 3,189 0.3% Total Revenue $644,363 $969,037 Product Profit Margin (Loss): Zip $115,673 $246,104 Jaz 15,655 34,090 CD-RW (43,909) 2,631 PocketZip (36,412) (24,439) Other (49,431) (7,558) Total Product Profit Margin (1) (2) 1,576 250,828 Common: General corporate expenses (92,045) (117,810) Restructuring (charges) reversals (34,352) 4,814 Interest and other income and expense, net12,532 9,125 Income (Loss) Before Income Taxes ($112,289) $146,957 (1) The nine months of 2001 includes $70.1 million of non-restructuring charges reflecting writedowns of inventory and equipment and loss accruals for related supplier purchase commitments. These charges include $12.0 million for Zip, $17.5 million for CD-RW, $21.5 million for PocketZip and $19.1 million for Other. (2) The nine months of 2000 includes $7.4 million of non-restructuring charges associated with valuation of inventories and equipment and accruals for supplier purchase commitments associated with PocketZip. IOMEGA CORPORATION CONDENSED BALANCE SHEETS (In thousands) (Unaudited) Sept. 30, Sept. 24, July 1, 2001 2000 2001 ASSETS: Cash and cash equivalents $243,121 $293,035 $271,421 Temporary investments 92,925 113,884 88,482 Trade receivables 97,007 169,213 108,978 Inventories 70,044 84,169 86,882 Deferred taxes 42,279 33,587 53,621 Other current assets 15,580 17,160 16,268 Total current assets 560,956 711,048 625,652 Fixed assets (net) 61,898 105,014 84,405 Intangible and other assets 26,896 24,699 27,674 $649,750 $840,761 $737,731 LIABILITIES AND STOCKHOLDERS' EQUITY: Current lease obligations $1,578 $4,209 $1,918 Accounts payable 67,778 114,804 78,204 Convertible notes 0 45,495 0 Other current liabilities 179,768 174,091 167,106 Total current liabilities 249,124 338,599 247,228 Deferred taxes 13,322 31,207 24,664 Long-term liabilities 2,961 499 2,904 Stockholders' equity 384,343 470,456 462,935 $649,750 $840,761 $737,731 CONDENSED STATEMENTS OF CASH FLOWS - YTD (In thousands) (Unaudited) For the Nine Months Ended Sept. 30, Sept. 24, 2001 2000 Cash Flows from Operating Activities: Net Income (Loss) ($97,175) $147,616 Non-Cash Revenue and Expense Adjustments 82,735 53,641 (14,440) 201,257 Changes in Assets and Liabilities: Trade receiveables 36,352 8,851 Inventories 3,139 18,850 Other current assets 4,310 5,785 Accounts payable (40,390) (20,811) Other current liabilities/taxes (2,798) (1,774) Net cash provided by (used in) operating activities (13,827) 212,158 Cash Flows from Investing Activities: Purchase of property, plant and equipment (15,680) (18,432) Sale of temporary investments 156,320 106,581 Purchase of temporary investments (126,898) (182,256) Net (increase) decrease in other assets (4,199) 4,276 Net cash provided by (used in) investing activities 9,543 (89,831) Cash Flows from Financing Activities: Proceeds from sale of Common Stock 1,034 2,187 Net payments on capitalized lease obligations (943) (2,200) Purchase of Common Stock (8,258) (1,985) Net cash provided by (used in) financing activities (8,167) (1,998) Net Increase (Decrease) in Cash and Cash Equivalents (12,451) 120,329 Cash and Cash Equivalents at Beginning of Period 255,572 172,706 Cash and Cash Equivalents at End of Period $243,121 $293,035 IOMEGA CORPORATION Supplemental Information Third Quarter 2001 (Unaudited) Revenue by Region ($Millions) Q3 2001 Q3 2000 Yr/Yr Change Q2 2001 Qtr/Qtr Change Americas $133 $228 ($95) $124 $9 Europe $38 $66 ($28) $44 ($6) Asia $11 $27 ($16) $16 ($5) Total Revenue $182 $321 ($139) $184 ($2) Regional Revenue and a Percentage of Total Revenue Q3 2001 Q3 2000 Q2 2001 Americas 73% 71% 67% Europe 21% 21% 24% Asia 6% 8% 9% Total Revenue 100% 100% 100% Product Platform Data (Thousands) Q3 2000 Q4 2000 Q1 2001 Q2 2001 Q3 2001 Shipped Zip Drive Units 1,674 1,792 1,479 1,215 1,280 >44 millon Unit Change Yr/Yr (30%) (33%) (21%) (26%) (24%) Iomega OEM 773 748 639 668 719 OEM Unit Change Yr/Yr (42%) (42%) (8%) (19%) (7%) Iomega OEM % 46% 42% 43% 55% 56% Zip Disk Units 14,804 10,389 11,732 8,621 6,678 >275 million Unit Change Yr/Yr 6% (39%) (23%) (40%) (55%) Jaz Drive Units 67 66 43 26 24 >2.9 million Unit Change Yr/Yr (39%) (38%) (43%) (62%) (64%) Jaz Disk Units 272 359 231 132 104 >10.9 million Unit Change Yr/Yr (50%) (30%) (48%) (55%) (62%) Iomega CD-RW Drive Units 193 346 270 144 147 >1.4 million Unit Change Yr/Yr 264% 264% 419% 20% (24%) PocketZip Drive Units 34 86 14 33 41 >320 thousand Unit Change Yr/Yr 3% 231% 0% 27% 21% PocketZip Disk Units 85 144 101 55 57 >800 thousand Unit Change Yr/Yr (8%) N/A (34%) (24%) (33%) Peerless Drive Units N/A N/A N/A 11 19 Peerless Disk Units N/A N/A N/A 14 18 Iomega Corporation Page 1 of 1 Investor Relations.