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Profits from popular Zip drive give Iomega an earnings boost

SHARE Profits from popular Zip drive give Iomega an earnings boost

ROY — Iomega Corp. earned $40.4 million in the second quarter, due in part to higher profits from its popular Zip drive, the company reported Thursday.

The company lost $47 million in 1999's second quarter.

Iomega earned 15 cents a share, compared to a 17-cent loss per share for the same period last year.

The just-completed quarter's figures include a $15.3 million one-time boost, worth 5 cents a share, as the company decreased funds set aside for taxes, plus $2.5 million, or a penny a share, from a reversal of previous tax restructuring charges.

With last year's second-quarter loss, Iomega announced plans to close facilities and eliminate jobs. Since then, the company has announced the development of new products, including an MP3 player with a built-in Clik! drive and storage devices for gaming machines.

"I am very pleased with our third consecutive quarter of profitability," Bruce Albertson, Iomega's president and chief executive officer, said in a release Thursday. "The new Iomega is an energized team dedicated to growing our business profitably."

Iomega shipped 1.6 million Zip drives in the second quarter of this year, 27 percent fewer than the same period last year. But manufacturing prices and operating costs fell sharply, which meant Zip profits more than doubled, from $32.8 million to $69.6 million.

At the same time, profits also boomed for the similar Jaz drive, which lost the company $2.1 million in the second quarter of 1999 but brought in $11.8 million for the same period this year. Losses also declined on the Clik! line.