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Tech Industry

Earnings Roundup: Iomega, RSA Security surprise

    Iomega managed to top Street estimates in its first quarter Thursday but total sales fell 11 percent from the year-ago quarter.

    The disk-drive manufacturer posted a profit of $51.8 million, or 19 cents a share, on sales of $344.9 million.

    Excluding a $20.1 million gain attributable to a decrease in the valuation allowance for net deferred tax assets, Iomega (NYSE: IOM) earned $31.7 million, or 12 cents a share in the quarter.

    First Call consensus expected it to earn 4 cents a share in the quarter.

    Ahead of the earnings report, Iomega shares closed unchanged at 4.

    The $344.9 million in sales marks an 11 percent decline from the year-ago quarter when it posted a profit of around $600,000 on sales of $386.2 million.

    While profit margins for its popular Zip drives helped bolster the bottom line, company officials weren't pleased with the top-line descent.

    "While I am pleased with our bottom-line results and resolve to maintain our profit focus, I am disappointed with our revenue decline,'' said CEO Bruce Albertson in a prepared release. "I think that while there are still challenges ahead, there are significant opportunities for growth."

    First Call consensus expects Iomega to earn 24 cents a share in the fiscal year.

    Its shares have bounced between $3 and $7 a share for the past year.

    One of the two analysts still following the stock rates it a "buy" while the other calls it a "hold."

    Among other technology companies reporting earnings Thursday:

  • PairGain Technologies Inc. (Nasdaq: PAIR) met analysts' estimates in its first quarter, posting a loss of 3 cents a share on sales of $60.7 million.

    Including a $329 million gain from the sale of its microelectronics group, it earned $189.4 million, or $2.46 a share.

    Analysts expected it to lose 3 cents a share, excluding those gains, in the quarter.

    The $60.7 million in sales was slightly less than the year-ago quarter when it earned $4.2 million, or 6 cents a share, on sales of $60.9 million.

    PairGain shares closed up 2 5/8, or 14 percent, to 20 3/4 ahead of the quarterly report.

    In February, PairGain announced that it would be acquired by ADC Telecommunications (Nasdaq: ADCT). The merger is expected to close during ADC's third fiscal quarter ending July 31.

    First Call consensus expects PairGain to earn 4 cents a share in the fiscal year.

  • RSA Security Inc. (Nasdaq: RSAS) beat analysts' estimates by a penny a share in its first quarter Thursday, earning $8.6 million, or 20 cents a share, on sales of $63.3 million.

    Its shares closed off 1 1/8 to 48 1/16 ahead of the earnings report.

    First Call consensus pegged RSA for a profit of 19 cents a share.

    The $63.3 million in sales marks a 30 percent jump from the year-ago quarter when it made $5.1 million, or 12 cents a share, on sales of $48.7 million.

    Including the operations of RSA Capital, the company raked in $24.6 million, or 56 cents a share, compared to $41 million, or 97 cents a share, in the year earlier period.

    "We continued the positive momentum we built throughout 1999 and we're off to a strong start in 2000," said CEO Art Coviello in a prepared release.>