Iomega Cutting Workforce by 25 Percent

Iomega Cutting Workforce by 25 Percent

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SALT LAKE CITY (AP) -- Iomega Corp. has announced it will cut 25 percent of its work force, about 200 jobs.

Spokesman Chris Romoser said Thursday that the company has not decided how many of the layoffs will be made at its operations in Roy, Utah, which account for 500 of the removable data storage device-maker's 800 workers worldwide.

For the quarter ended June 29, Iomega reported a net income of $4.4 million or 9 cents per share, less than half the $11.5 million and 22 cents per share it recorded the same time a year ago.

Further, the 2003 second quarter was buoyed considerably by $4.6 million in research tax credits.

Second quarter sales were down 30 percent from the year-ago quarter to $100.8 million.

Iomega recorded an operating loss of $1.4 million for the quarter.

Iomega President and CEO Werner Heid predicted a turnaround in the company's bottom line following its latest restructuring move, but said it will take some time.

"The expected lower operating expenses will not be fully implemented until first quarter 2004, which makes it very unlikely that the company will be able to achieve an operating profit before restructuring charges in third quarter 2003," he said.

Iomega shares closed Thursday at $11.40, down 69 cents from Wednesday.

(Copyright 2003 by The Associated Press. All Rights Reserved.)

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