Iomega To Exit Small-Form-Factor StorageBy Mark Hachman | Posted 2004-07-23 Email Print
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Iomega Corp. this week said it plans to wind down its DCT small-form-factor storage operation, failing to find enough customers to keep the operation afloat.Iomega Corp. this week said it plans to wind down its DCT small-form-factor storage operation, failing to find enough customers to keep the operation afloat.
On Thursday, Iomega reported a net loss of $19.8 million for its second quarter on revenue of $77.6 million. Revenue dipped by 23 percent from a year ago, largely from declining sales of its Zip and optical-drive business.
With the Zip drive being slowly overtaken by optical storage, Iomega bet its future on the REV drive, which
Instead, Iomega plans to license the device to other interested parties, Heid said.
Rev revenues totaled $7.5 million with a "product loss" of $6.7 million, which the company attributed to startup costs. Second-quarter 2004 Zip product sales of $32.3 million decreased $34.1 million, or 51.4 percent, from the second quarter of 2003.