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European sales boost Iomega

Data-storage company Iomega beat analysts' third-quarter earnings estimates, in part due to strong sales in Europe.

Data-storage company
Iomega today beat analysts' third-quarter earnings estimates, in part due to strong sales in Europe.

Net income reached $30 million, or 22 cents per share, compared with earnings of $13 million, or 9 cents per share, for the corresponding quarter last year.

Iomega recorded revenues of $432 million, a 39 percent increase over last year?s third-quarter revenues of $310 million.

Iomega beat First Call?s consensus of analysts' expectations by 2 cents.

Howard Rosencrans, a market analyst with HD Brous, said that the company?s results were exactly what he expected, attributing the earnings to "continued strong demand for the product."

The company announced last week that it expected booming European sales to boost its third-quarter results. Today, the company disclosed that its European sales grew 114 percent in the third quarter, to $108 million.

Iomega?s Zip and Jaz drives led product sales, growing 51 percent over the third quarter last year. Together, the two products brought in $406 million.

Iomega?s earnings apparently were unaffected by a complaint the drive-maker filed in late September in Paris against competitor Nomai, accusing the company of unfair competition and trademark violations.

Iomega sued to stop Nomai from selling 100MB diskettes compatible with its high-capacity storage products. The case has not been settled yet, but Rosencrans called it, "a non-issue," and said that Nomai is clearly "playing fast and loose with the rules."

Iomega reported after the market closed. Its stock closed today unchanged at 24 9/16.