IOMEGA CORPORATION
TABLE OF CONTENTS
Page
PART I - FINANCIAL INFORMATION
Condensed consolidated balance sheets at
July 2, 1995 and December 31, 1994. . . . 2
Condensed consolidated statements of operations
for the three months ended July 2, 1995
and July 3, 1994. . . . . . . . . . . . . 4
Condensed consolidated statements of operations
for the six months ended July 2, 1995
and July 3, 1994. . . . . . . . . . . . . 5
Condensed consolidated statements of cash flows
for the six months ended July 2, 1995
and July 3, 1994. . . . . . . . . . . . . 6
Notes to condensed consolidated financial statements . . . . 7
Management's discussion and analysis of financial
condition and results of operations . . . 10
PART II - OTHER INFORMATION. . . . . . . . . . . . . . . 13
SIGNATURES . . . . . . . . . . . . . . . . . . 14
EXHIBIT INDEX. . . . . . . . . . . . . . . . . 15
<PAGE>
IOMEGA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
July 2, December 31,
1995 1994
-------- -----------
(unaudited)
(In thousands)
<C> <S> <S>
CURRENT ASSETS:
Cash and cash equivalents $ 9,496 $ 16,861
Temporary investments - 2,932
Trade receivables (net) 29,336 18,892
Inventories 29,307 17,318
Income taxes receivable 917 1,682
Deferred income taxes (net) 724 477
Other current assets 2,972 2,395
------- --------
Total current assets 72,752 60,557
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, at cost 69,622 59,193
Less - accumulated depreciation
and amortization (45,428) (43,917)
-------- ---------
Net equipment and leasehold improvements 24,194 15,276
DEFERRED INCOME TAXES (NET) 445 -
-------- ---------
$ 97,391 $ 75,833
======== =========
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these balance sheets.
IOMEGA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
July 2, December 31,
1995 1994
--------- ------------
(unaudited)
(In thousands)
<C> <S> <S>
CURRENT LIABILITIES:
Accounts payable $ 29,306 $ 7,228
Other accrued liabilities 18,900 18,511
-------- --------
Total current liabilities 48,206 25,739
SERIES A CONVERTIBLE PREFERRED STOCK,
Authorized 1,200,000 shares, 258,816
outstanding shares at December 31,
1994, none outstanding at July 2, 1995
(See Note 6) - 1,031
SHAREHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized
3,300,000 shares, none issued - -
Series C junior participating preferred
stock, authorized 250,000 shares,
none issued - -
Common stock, $.03 1/3 par value; authorized
30,000,000 shares, 19,255,065 and 18,519,749
shares outstanding at July 2, 1995 and
December 31, 1994, respectively 643 617
Additional paid-in capital 51,237 48,258
Note receivable from shareholder - (597)
Retained earnings (deficit) (2,695) 785
-------- -------
Total shareholders' equity 49,185 49,063
--------- ---------
$ 97,391 $ 75,833
========= =========
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these balance sheets.
IOMEGA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
For the Three Months Ended
July 2, July 3,
1995 1994
--------- ---------
(In thousands except
per share data)
<C> <S> <S>
SALES $ 52,594 $ 32,867
COST OF SALES 40,907 20,851
-------- -------
Gross Margin 11,687 12,016
OPERATING EXPENSES:
Selling, general and administrative 10,162 8,898
Research and development 3,976 3,613
--------- -------
Total operating expenses 14,138 12,511
--------- -------
OPERATING LOSS (2,451) (495)
Interest and other income and expense (55) 257
---------- -------
LOSS BEFORE INCOME TAXES (2,506) (238)
Benefit for income taxes 559 -
--------- ---------
NET LOSS $ (1,947) $ (238)
========= =========
NET LOSS PER COMMON SHARE $ (0.10) $ (0.01)
========= =========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
(1994 includes effects of 5-for-4
stock split (see Note 2)) 19,006 18,516
========= ========
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these statements.
IOMEGA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
For the Six Months Ended
July 2, July 3,
1995 1994
--------- --------
(In thousands except
per share data)
<C> <S> <S>
SALES $ 92,706 $ 67,373
COST OF SALES 69,302 44,757
-------- --------
Gross Margin 23,404 22,616
OPERATING EXPENSES:
Selling, general and administrative 19,511 18,624
Research and development 8,102 7,307
-------- --------
Total operating expenses 27,613 25,931
-------- --------
OPERATING LOSS (4,209) (3,315)
Foreign currency (loss) gain (1,233) 135
Interest and other income and expense 1,158 251
-------- ---------
LOSS BEFORE INCOME TAXES (4,284) (2,929)
Benefit (provision) for income taxes 839 (2,700)
--------- ----------
NET LOSS $ (3,445) $ (5,629)
========= ==========
NET LOSS PER COMMON SHARE $ (0.18) $ (0.30)
========= ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
(1994 includes effects of 5-for-4
stock split (see Note 2)) 18,886 18,500
========= ==========
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these statements.
IOMEGA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
For the Six Months Ended
July 2, July 3,
1995 1994
--------- ---------
(In thousands)
<C> <S> <S>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (3,445) $ (5,629)
Non-cash Revenue and Expense Adjustments:
Depreciation and amortization expense 3,804 3,523
Deferred income tax (benefit) provision (692) 2,700
Other 490 (169)
Changes in Assets and Liabilities:
Trade receivables (net) (10,444) 4,974
Inventories (11,988) 777
Income taxes receivable 768 448
Other current assets (858) 295
Accounts payable 22,078 (2,057)
Accrued liabilities 540 (237)
--------- --------
Net cash provided from operating
activities 253 4,625
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment and leasehold
improvements (13,105) (2,254)
Purchase of temporary investments (2,090) -
Sale of temporary investments 5,022 -
Net increase in other assets (2) (5)
Proceeds from sale of research and
development assets - 2,000
-------- ---------
Net cash used in investing activities (10,175) (259)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sales of Common Stock 1,497 71
Tax benefit from early dispositions of
employee stock 210 -
Purchase of Common Stock - (305)
Conversion of Series A Convertible Stock (30) -
Proceeds from notes receivable from
shareholders 880 -
--------- --------
Net cash provided from (used in)
financing activities 2,557 (234)
--------- --------
NET INCREASE (DECREASE)IN CASH AND CASH
EQUIVALENTS (7,365) 4,132
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 16,861 18,804
--------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 9,496 $ 22,936
========== =========
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Net payable associated with revaluation of
forward exchange contracts $ (1,151) $ (48)
========= =========
Sale of common stock for a note $ 283 $ -
======== =========
Conversion of Series A Preferred Stock to
Common Stock $ 1,205 $ -
======== =========
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these statements.
IOMEGA CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
In the opinion of management, the accompanying condensed consolidated
financial statements reflect all adjustments (consisting only of normal
recurring adjustments) which are necessary to present fairly the financial
position of Iomega Corporation and subsidiaries (the "Company") as of July
2, 1995 and December 31, 1994, the results of operations for the three-and
six-month periods ended July 2, 1995 and July 3, 1994, and cash flows for
the six-month periods ended July 2, 1995 and July 3, 1994.
The results of operations for the six-month period ended July 2, 1995 are
not necessarily indicative of the results for the entire year.
These unaudited condensed consolidated financial statements should be read
in conjunction with the consolidated financial statements and notes
included in or incorporated into Iomega Corporation's latest Annual Report
on Form 10-K.
Principles of Consolidation -- The condensed consolidated financial
statements include the accounts of the Company and its wholly owned
subsidiaries after elimination of all material intercompany accounts and
transactions.
Revenue Recognition -- Revenue is recognized when units are shipped to
customers. However, revenue recognition is deferred on shipments to
distributors whose inventory is in excess of normal distributor inventory
requirements. The Company's general policy is not to accept returns of
product except for those products under warranty or for which the customer
has a right of return agreement. The deferral of sales in excess of
normal distributor inventory requirements associated with right of return
agreements totaled $1,523,000 and $1,947,000 at July 2, 1995 and December
31, 1994, respectively, and is recorded in deferred revenue as a component
of other accrued liabilities.
Foreign Currency Translation -- For purposes of consolidating foreign
operations, the Company has determined the functional currency for its
foreign operations is the U.S. dollar. Therefore, translation gains and
losses are included in the determination of income as a component of
interest and other income and expense.
Cash Equivalents and Temporary Investments -- The Company considers all
highly liquid debt instruments purchased with maturities of three or fewer
months to be cash equivalents. Instruments with maturities in excess of
three months are classified as temporary investments. At December 31,
1994, all temporary investments had maturities less than six months.
Accordingly, the Company classifies all cash equivalents and temporary
investments as held to maturity. Cash equivalents and temporary
investments consist primarily of commercial paper, banker's acceptances,
investments in money market mutual funds and certificates of deposit and
are recorded at cost which approximates market value.
The Company's policy is to invest in high quality commercial paper of
reputable companies rated at A2P2 or above. The diversification of risk
is consistent with Company policy to maintain liquidity and ensure the
safety of principal.
Inventories -- Inventories include direct materials, direct labor and
manufacturing overhead costs and are recorded at the lower of cost (first-
in, first-out) or market and consist of the following:
July 2, December 31,
1995 1994
-------- ------------
(In thousands)
Raw materials $ 18,402 $ 7,524
Work-in-process 6,443 4,839
Finished goods 4,462 4,955
--------- ----------
$ 29,307 $ 17,318
========= ==========
Reclassifications -- Certain reclassifications were made to the 1994
condensed consolidated financial statements to conform with the 1995
presentation.
Net Income (Loss) Per Common Share -- Net income (loss) per common share
is based on the weighted average number of shares of common stock and
dilutive common stock equivalent shares outstanding during the respective
periods. Common stock equivalent shares consist primarily of stock
options and convertible preferred stock that have a dilutive effect when
applying the treasury stock method. In periods where losses are recorded,
common stock equivalents would decrease the loss per share and are
therefore not added to weighted average shares outstanding. The
outstanding shares and earnings per share have been restated for all 1994
periods presented to reflect the impact of the Stock Split described in
Note 2.
(2) STOCK SPLIT
On October 27, 1994 the Company's Board of Directors declared a 5-for-4
stock split which was effected in the form of a 25% common stock dividend
paid on November 23, 1994 to stockholders of record at the close of
business on November 9, 1994 ("Stock Split"). The Company paid cash in
lieu of issuing fractional shares.
The transaction was accounted for as a stock split. Of the shares of
Common Stock distributed by the Company in connection with the Stock
Split, approximately 3,017,000 were treasury shares and the remainder were
authorized but unissued shares. The cost of the treasury shares and
authorized but unissued shares was recorded as a reduction in paid-in
capital. All earnings per share and outstanding shares have been
retroactively restated in the 1994 financial statements.
(3) INCOME TAXES
The components of and the changes in the net deferred tax assets and
liabilities for the six month period ended July 2, 1995 are as follows (in
thousands):
Deferred
December 31, (Expense) July 2,
1994 Benefit 1995
----------- ---------- ----------
Deferred tax assets:
Bad debt reserves $ 482 $ (36) $ 446
Inventory reserves 940 (286) 654
Fixed asset reserves 36 (10) 26
Accrued expense reserves 4,596 451 5,047
Unrealized foreign currency - 293 293
Inventory unicap adjustment 160 (12) 148
Accelerated depreciation - 145 145
Foreign net operating loss
carryover 1,493 (341) 1,152
Research credit carryover 5,365 (176) 5,189
Intercompany profit in
inventory 95 (32) 63
Other (216) 2 (214)
--------- -------- ---------
Total deferred tax assets 12,951 (2) 12,949
Valuation allowance (12,333) 553 (11,780)
-------- ------- ---------
Deferred tax asset net of
valuation allowance 618 551 1,169
Deferred tax liabilities:
Accelerated depreciation (141) 141 -
--------- --------- --------
Net deferred tax asset $ 477 $ 692 $ 1,169
========= ========= ========
Cash paid for income taxes was $41,000 for the first six months of 1995
and $63,000 for the corresponding period in 1994. A tax refund of
$1,332,000 was received during the first half of 1995.
(4) OTHER MATTERS
Significant Customers -- During the fiscal quarter and six-month periods
ended July 2, 1995, a single customer accounted for 14% and 10%,
respectively, of consolidated sales. During the fiscal quarter and six-
month periods ended July 3, 1994, sales to another single customer
accounted for 10% and 11%, respectively, of the Company's sales. No
other single customer accounted for more than 10% of the Company's
sales for these periods.
Notes Receivable from Related Parties -- In September 1993, the Company
loaned an executive officer approximately $679,000 on a full recourse
basis as part of the officer's severance package; a portion of the loan
was used by the executive to exercise stock options. This loan is
included in note receivable from shareholder in the accompanying
consolidated financial statements. The loan was paid in full with accrued
interest during the first quarter of 1995.
In January 1995, the Company loaned an executive officer approximately
$283,000 as part of the officer's severance package. A portion of the
loan was used by the executive to exercise stock options. The loan was
paid in full with accrued interest during the second quarter of 1995.
Forward Exchange Contracts -- The Company's foreign subsidiaries sell
products in several foreign currencies. In order to hedge the estimated
cash flow (revenues less expenses) which is remitted to the parent
company, the Company has entered into forward exchange contracts to sell
foreign currencies. The contracts mature at February 1996.
The outstanding forward exchange sales contracts at July 2, 1995 are as
follows:
Deutsche Marks 14,220,000 DM
Great Britain Pound 1,660,000 GBP
French Franc 20,300,000 FRF
Spanish Pesta 272,500,000 ESB
Italian Lira 3,150,000,000 ITL
The forward contracts are marked to market by obtaining forward rates from
financial institutions. Gains and losses on foreign currency contracts
intended to be used to hedge operating requirements are reported currently
in income. The Company's risk in these transactions includes the cost of
replacing, at current market rates, these contracts in the event of
default by the counterparty.
(6) CONVERSION OF SERIES A CONVERTIBLE PREFERRED STOCK
Effective June 16, 1995, the Company exercised its right to require the
conversion of all outstanding Series A Convertible Preferred Stock
("Series A") into the Company's Common Stock pursuant to the original
conversion terms. Upon conversion, 106,200 shares of Common Stock were
issued to the Series A shareholders. Any fractional shares were paid cash
in lieu of stock.
Common shares issued on conversion of the Series A shares were recorded at
the net carrying value of Series A shares, plus accrued dividends.
(7) SUBSEQUENT EVENT
On July 5, 1995, the Company entered into a loan agreement with the
Commercial Finance Division of Wells Fargo Bank, N.A. permitting revolving
loans, term loans and letters of credit up to an aggregate of $60 million.
The agreement is effective through June 30, 1996. The total of revolving
loans and letters of credit will be limited to 80 percent of eligible
accounts receivable with an aggregate sub-limit of $10 million for letters
of credit. Equipment-based term loans will also be limited to $10 million
in the aggregate. Although the maximum amount available at any given time
will vary, the Company estimates that approximately $18 to $22 million is
presently available to the Company under the facility.
<PAGE>
IOMEGA CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
On October 27, 1994, the Company's Board of Directors declared a 5-for-4 stock
split effected in the form of a 25% common stock dividend paid on November 23,
1994 to stockholders of record at the close of business on November 9, 1994 (the
"Stock Split"). The following discussion gives retroactive effect to the Stock
Split for all 1994 periods presented.
As was anticipated, the Company recorded operating losses in the three- and six-
month periods ended July 2, 1995 due primarily to manufacturing start-up costs
associated with the Zip drive, a higher mix of lower margin products and
increased spending to launch and develop new Ditto tape products and the new Jaz
drive. The Company recorded a net loss of $1.9 million, or $0.10 per share, for
the second quarter of 1995 compared to a net loss of $.2 million, or $0.01 per
share, for the second quarter of 1994. For the six months ended July 2, 1995,
the Company recorded a net loss of $3.4 million, or $0.18 per share, compared to
a net loss of $5.6 million, or $0.30 per share, for the same period in 1994.
Included in the 1994 first half results was a $2.7 million tax provision related
to a reduction in net deferred tax assets.
RESULTS OF OPERATIONS
Sales for the three- and six-months ended July 2, 1995 increased by $19.7
million, or 60%, and $25.3 million, or 38%, respectively, when compared to the
corresponding periods of 1994. The increases were primarily a result of higher
Ditto tape product revenues both domestically and internationally, and the
introduction of the new Zip product line which began shipping at the end of the
first quarter. These increases were partially offset by the anticipated decline
in Bernoulli sales revenue. International sales, primarily to European
customers, accounted for 26.6% and 33.6% of sales for the first
quarter and first six months of 1995 compared to 35.2% and 36.5% for the
corresponding periods in 1994. For the remainder of the year, management
expects increases in sales of Ditto and Zip products, as well as planned new
products, compared to the first half of 1995 and expects sales of Bernoulli
products to decline throughout the year compared to the prior year and first
half of 1995. The demand for the new Zip product continues to exceed
production. The Company has added manufacturing personnel in addition to
entering into subcontracting arrangements with several companies skilled at
high-volume manufacturing in an effort to resolve the capacity shortage
issues. However, the Company is experiencing component shortages which may
continue to limit production. There can be no assurance that future sales
will materialize as expected.
The Company's gross margin percentages for the second quarter and first six
months of 1995 were 22.2% and 25.2% compared to 36.6% and 33.6%, respectively
for the same period in 1994. The lower margins were a result of
manufacturing start-up costs associated with Zip products, as well as a
higher mix of lower margin Ditto products and the anticipated decline in
higher margin Bernoulli sales. Management expects gross margin percentage of
its Zip product line to improve as volumes increase and manufacturing
processes are improved. Management expects gross margins to continue under
pressure as the Company enters the second half of 1995, but should bottom out
and start to increase prior to the fourth quarter. Management also expects
some additional manufacturing start-up costs in the third quarter of 1995 in
conjunction with the new products planned for later in 1995.
Selling, general and administrative expenses represented 19.3% and 21.0% of
sales for the three- and six-month periods ended July 2, 1995 respectively,
compared to 27.1% and 27.6% for the corresponding periods in 1994. Overall,
spending in this area increased by 14.2% and 4.8% in the three- and six-month
periods ended July 2, 1995, respectively, when compared to the same periods
in 1994. The increases were primarily a result of advertising to launch new
products and variable selling expenses. Management expects expenditures in
sales and marketing to increase in future quarters as advertising expenses
are incurred to enhance the awareness of current products and to launch
future products. It is currently anticipated that increased spending
associated with product introductions will continue throughout the current
year. General and administrative expenses are also expected to increase
during the remainder of the year as compared to the first half of 1995.
Research and development expenses represented 7.6% and 8.7% of sales for the
second quarter and first half of 1995, respectively, compared to 11.0% and 10.8%
in the corresponding periods of 1994. Research and development expenses in
total increased by 10.0% and 10.9% in the second quarter and first half of 1995,
respectively, compared to the same periods of 1994. These increases were
primarily a result of expenditures related to the development of the Zip, Ditto
and Jaz products. Management expects research and development expenditures in
absolute dollars to increase through the remainder of 1995 as a result of adding
technical resources for future product development.
During the first six months of 1995, the Company recorded a net foreign currency
loss of $1.2 million as a result of the U.S. dollar weakening against European
currencies. The majority of this decline took place in March. The foreign
currency loss was offset by interest income, royalties and other income.
With regard to the foreign currency loss, since the dollar was at a postwar low
against the deutsche mark, the Company bought more than its customary three
months of forward exchange contracts with the intent of hedging the Company's
cash position in Europe through the end of the year. However, the dollar
continued to decline resulting in a $1.4 million negative impact on earnings
relating to these contracts. This was partially offset by a translation gain on
the European working capital of $.2 million, which resulted in a net foreign
currency loss of $1.2 million in the first six months of 1995. It is difficult
to predict the future of exchange rate movements or whether the volatility in
the foreign exchange markets experienced in the first half will continue
throughout 1995. The impact on operations of a volatile foreign exchange
market will diminish as cash from Europe is used to pay down the foreign
exchange contracts entered into by the Company during the remainder of 1995.
In the first six months of 1994, the Company recorded a $2.7 million tax
provision relating to an increase in valuation allowance against deferred tax
assets due to uncertainties and changing business conditions. For the first six
months of 1995, the Company had a tax benefit of $839,000, which represents an
effective rate of 24%.
LIQUIDITY AND CAPITAL RESOURCES
At July 2, 1995, the Company had cash and temporary investments of $9.5 million,
working capital of $24.5 million, and a ratio of current assets to current
liabilities of 1.5 to 1. When compared to December 31, 1994, cash and temporary
investments decreased by $10.3 million. This decrease was primarily a result of
capital expenditures to support new products partially offset by an increase in
accounts payable.
Accounts receivable increased by $10.4 million at July 2, 1995 compared to
December 31, 1994 primarily as a result of higher sales during the second
quarter. Inventories increased by $12.0 million at July 2, 1995 compared to
December 31, 1994 due to the inventory buildup for the introduction of new
products. The increases in receivables and inventories were offset by increases
in payables and other accrued liabilities of $22.6 million and proceeds from
sales of common stock of $1.5 million.
The Company expects to use significant amounts of cash over the next several
months to fund working capital and purchase tooling and manufacturing equipment
for Zip and other new products. On July 5, 1995, the Company signed a $60
million revolving line of credit with Wells Fargo Bank, N.A. to be utilized in
funding its working capital needs over the next 12 months. The Company's
borrowings are limited to 80 percent of eligible accounts receivables. Although
the maximum amount will vary at any given time, the Company currently estimates
between $18 and $22 million is available. In addition, the Company is working
with other financial institutions to arrange financing of certain planned major
manufacturing purchases. However, there can be no assurance that additional
financing will be secured or that the funds available under the revolving line
of credit will be sufficient to provide all of the desired capacity expansion.
PART II - OTHER INFORMATION
IOMEGA CORPORATION
Item 4. Submission of Matters to a Vote of Security Holders
At the Company's Annual Meeting of Stockholders held on April 25,
1995, the following proposals were adopted by the vote specified
below:
<TABLE>
Against Broker
or Non-
Proposal For Withheld Abstain Votes
<C> <S> <S> <S> <S>
1. Election of Directors:
Willem H.J. Andersen: 17,309,268 157,872 - -
Robert P. Berkowitz: 17,309,249 157,891 - -
Anthony L. Craig: 17,309,773 157,367 - -
David J. Dunn: 17,309,442 157,698 - -
Kim B. Edwards: 17,309,977 157,163 - -
Michael J. Kucha: 17,309,537 157,603 - -
John R. Myers: 17,308,424 158,716 - -
John E. Nolan, Jr.: 17,310,692 156,448 - -
The Honorable
John E. Sheehan: 17,311,192 155,948 - -
2. Ratification of
Arthur Andersen LLP
as independent
auditors: 17,374,688 30,468 60,071 1,913
3. Approval of 1995
Director Stock
Option Plan: 15,752,795 1,130,864 156,323 427,158
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits. The exhibits listed on the Exhibit Index filed as
a part of this Quarterly Report on Form 10-Q are incorporated
herein by reference.
(b) Reports on Form 8-K. No reports on Form 8-K were filed by the
Company during the quarter for which this report is filed.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
IOMEGA CORPORATION
(Registrant)
/s/ Kim B. Edwards
Dated: August 16, 1995 Kim B. Edwards
President and Chief Executive
Officer
/s/ Leonard C. Purkis
Dated: August 16, 1995 Leonard C. Purkis
Senior Vice President, Finance,
Chief Financial Officer and
Treasurer
<PAGE>
EXHIBIT INDEX
The following exhibits are filed as part of this Quarterly Report on Form 10-Q:
Exhibit No. Description
10.31(a) Iomega Incentive Plan Awards for Named Executive Officers.
Exhibit 10.31a
IOMEGA INCENTIVE PLAN AWARDS FOR NAMED EXECUTIVE OFFICERS
The Compensation Committee has approved the 1995 bonus plan and payout
structure under the Iomega Incentive Plan for the Corporation's named
executive officers (other than Mr. Kim B. Edwards, the Corporation's
President and Chief Executive Officer, who is not a participant in the Plan)
(the "Named Officers"). Targeted bonuses for 1995 for the Named Officers
range from 30% to 35% of salary. Actual bonuses can range from 0% to 400% of
such person's targeted bonus. The program metric for each of the Named
Officers is the "corporate sales and profitability plan" (except in the case
of Mr. Nageshwar whose program metrics are the "European sales and operating
profit plan" (75%) and the "corporate sales and profitability plan" (25%)).
In addition, for each of the Named Officers, a separate bonus of 20% of
salary (or 40% if such person's targeted bonus under the Iomega Incentive Plan
was 30%) will be paid if the corporation achieves certain levels of sales
and pretax income.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUL-02-1995
<CASH> 9496
<SECURITIES> 0
<RECEIVABLES> 31505
<ALLOWANCES> (2124)
<INVENTORY> 29307
<CURRENT-ASSETS> 72752
<PP&E> 69622
<DEPRECIATION> (45428)
<TOTAL-ASSETS> 97391
<CURRENT-LIABILITIES> 48206
<BONDS> 0
<COMMON> 643
0
0
<OTHER-SE> 51237
<TOTAL-LIABILITY-AND-EQUITY> 97391
<SALES> 52594
<TOTAL-REVENUES> 52594
<CGS> 40907
<TOTAL-COSTS> 14138
<OTHER-EXPENSES> (55)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2506)
<INCOME-TAX> (559)
<INCOME-CONTINUING> (1947)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1947)
<EPS-PRIMARY> (0.10)
<EPS-DILUTED> (0.10)
</TABLE>
