UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 19, 1999
COMMISSION FILE NUMBER 1-12333
Iomega Corporation
(Exact name of registrant as specified in its charter)
Delaware 86-0385884
(State or other jurisdiction (IRS employer
of incorporation or organization) identification number)
1821 West Iomega Way, Roy, UT 84067
(Address of principal executive offices)
(801) 332-1000
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events
Iomega Corporation (the "Company") announced on August 19, 1999 that Jodie
K. Glore had resigned as its president and chief executive officer, effective
August 31, 1999. A copy of the Company's press release dated August 19, 1999 is
filed herewith as Exhibit 99 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits. See Exhibit Index attached hereto.
<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 hereunto duly authorized.
Date: August 19, 1999 IOMEGA CORPORATION
(Registrant)
By: /s/ Philip G. Husby
-------------------------
Philip G. Husby
Senior Vice President, and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit Description
99 Press release dated August 19, 1999 entitled "IOMEGA CHIEF
EXECUTIVE RESIGNS"
Janet Kacskos, Iomega Corporation (801) 332-4736 / [email protected]
Analyst/Investors, please contact:
Wade Olsen, Iomega Corporation (801) 332-4430 / [email protected]
FOR IMMEDIATE RELEASE
IOMEGA CHIEF EXECUTIVE RESIGNS
ROY, Utah, August 19, 1999 - Iomega Corporation (NYSE:IOM) announced today that
effective August 31, 1999, Jodie Glore will resign as president and chief
executive officer of Iomega Corporation. In resigning, Mr. Glore said 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," said Glore.
Glore added that Iomega has made considerable progress in the 10 months he was
president and believes 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. Glore concluded by saying that Iomega has many
great employees, customers and suppliers and that they provide a solid
foundation for Iomega's future growth.
It is expected that David J. Dunn, chairman of Iomega's board of directors will
serve as acting president and CEO until a new CEO 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.
About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(R),
Jaz(R) and Clik!(TM) drives and disks that help people to organize, manage,
create, exchange and share their important information. Used in homes,
businesses, government, education and by creative professionals everywhere,
Iomega storage solutions are the enabling technologies preferred by millions.
The Company can be reached at 1-800-MY-STUFF (800-697-8833), or on the Web at
http://www.iomega.com.
EDITOR'S NOTE:
A letter to shareholders from David J. Dunn is attached to this press release.
It is also available at www.iomega.com/letter.html.
Special note: Statements contained in this release and in the letter to
shareholders from Mr. Dunn related to returning to profitable growth, increasing
development of software, continuing improvement in quality and customer service,
reducing expense levels and successfully filling key open positions are forward
looking statements. There are a number of important factors that could cause
actual events to differ materially from those indicated by such forward-looking
statements, including market acceptance of, and demand for, Iomega's products,
manufacturing, development and distribution issues, product pricing,
competition, intellectual property rights and other risks identified in Iomega's
Annual Report to Stockholders for 1998 on Form 10-K, filed March 26, 1999 and
its most recent quarterly reports filed with the SEC.
Iomega, Zip, Jaz and the stylized "i" logo are registered trademarks and Clik!
and NZR are trademarks of Iomega Corporation. All other products and brand names
are the property of their respective owners. For maximum reliability, use only
genuine Zip disks featuring the genuine Zip 100 or Zip 250 symbols in your Zip
drive.
<PAGE>
Letter to Shareholders
Jodie Glore has informed Iomega's board of directors that he is resigning
as president and CEO, effective August 31st. I and every other member of
Iomega's board deeply regret Jodie's decision. We believe that he has gotten off
to a good start and has the potential to do an outstanding job for Iomega. On a
personal basis, working with Jodie has been a pleasure - he is one of the finest
people I've worked with. I and everyone else at Iomega will miss him.
Jodie will have to speak for himself as to his reason for leaving. I can
only say that it was not because of a lack of confidence in him or support of
him by the board of directors. He informs me that he is not leaving for another
position and intends to take a vacation and spend time with his family.
Where do we go from here? First, let me say that I am confident that
Iomega can return to profitable growth. We have a strong customer franchise -
2.5 million Zip drives and 17.2 million Zip disks were shipped in the second
quarter of 1999. Total Zip drives shipped to date were more than 26 million and
total Zip disks shipped more than 150 million.
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.
We are increasing our development of software to enhance the value of our
products. We have improved significantly in quality and customer service and
will recommit ourselves to continued improvement in these areas. We have cut
manpower and expenses significantly and will continue to challenge expense
levels.
We have many good people in Iomega and with them we will create an
environment which encourages individual contribution to problem solving,
strategy development, cost reduction and profitability.
There is no reason that I know of why Iomega can't be profitable. We have
been investing the profits made on Zip into the development and introduction of
new products. We have to make the new products stand on their own financially.
We must become profitable overall again.
Jodie recently recruited a new CFO, Philip G. Husby, and a new treasurer,
Tracy M. Welch. They are strong and welcome additions to our management team. We
will redouble our efforts to fill open key positions most importantly a new
president and CEO. We expect to choose a recruiting firm within a short time to
assist us in this search.
It is anticipated that I will serve as chairman and CEO until we hire the
new president and CEO, and I will do everything I can to move Iomega ahead in
the interim. I do not envision a holding action. I will be very disappointed if
we can't make real progress toward achieving our goals.
As shareholders may sense from the tone of this letter, I have
undiminished enthusiasm for the value and prospects of Iomega. I can't guarantee
success, but I will do all in my power to make it happen.
I hope that you, our shareholders, will bear with us as we recruit a new
CEO. We will do everything we can to find the right person and to create the
atmosphere within Iomega, which will ensure his or her success.
Respectfully,
/s/ DAVID J. DUNN
-----------------------------
DAVID J. DUNN
Chairman
