ROY -- Iomega Corp. has announced Jodie Glore, its president and chief executive officer, will resign effective Aug. 31.
Glore took the helm of the financially troubled computer data storage maker 10 months ago, replacing interim president and CEO James E. Sierk. Sierk had been named to the post in March 1998 when president and CEO Kim Edwards resigned after the company announced it had lost $25 million in the first quarter.Glore said in a company statement that he made this decision for personal reasons and that he is not leaving for another job.
"I expect to take my first vacation in three years and spend time with my family," he said.
Glore said he believes Iomega has made considerable progress during his tenure and that the progress will continue after he leaves. He said that he would be available to the chairman and to the board for whatever advice and counsel they would seek from him.
Analyst Howard Rosencrans of the New York research firm H.D. Brous had a much harsher prognosis Friday.
"Basically he inherited a difficult situation," Rosencrans said. "This company is headed toward bankruptcy. There is very little chance this company is viable at this junction."
Iomega soared financially for several years after its flagship Zip drives and disks caught on in the market. But the company's financial successes were in full reverse by the end of 1997. Since then, "It has been readily apparent that the lights need to go out," Rosencrans said.
Glore's announcement follows the departure in June of five executives and senior management officials: the chief financial officer, the chief operations officer, the general counsel and the directors of corporate affairs and investor relations.
Glore had previously announced plans for 450 layoffs amid second-quarter losses of $47.1 million.
Iomega stock closed Thursday at 4 1/16 and was trading down at 3 3/4 Friday morning. Stock prices have varied widely over the past year, trading as high as 10 3/16 in January and as low as 2 15/16 in September.
It is expected that David J. Dunn, chairman of Iomega's board of directors, will serve as acting president and CEO until a new chief executive is hired. Dunn has been Iomega's chairman since 1980. He is the managing general partner of Idanta Partners Ltd., a venture capital firm, a position he has held since 1971.
Dunn released a letter to shareholders Thursday, saying Glore still had the confidence of the company's board of directors. "He is one of the finest people I've ever worked with," Dunn said.
Iomega is shipping several configurations of its new 40-megabyte Clik! disks and drives, as well as an industry-standard CD-RW drive under its brand.
Dunn said he is confident Iomega can return to profitable growth.
"We have a strong customer franchise," he said. "The basic Zip business is and should be profitable. I believe that profitability can be enhanced by closer contact with end users. We have to understand how and why they use Zip drives and educate them on additional uses.