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Tuesday, October 01, 1996 Iomega was up $1 Monday, closing at $24 1/4 (+4.30%). TODAY'S RECAP: Monday Iomega announced a broad alliance with several major players in the computer hardware arena, including Intel, Motorola, Adaptec, and Texas Instruments. These firms will unite in producing a "Zip Chip" that will streamline production and help Iomega in its efforts to bring the price of the Zip drive below $100. The implications of this development loom large, because as retail prices come down, Iomega's high-capacity drives should be able to seize a greater share of the removable storage market. The alliance also gives Iomega an impressive list of component suppliers to wave under the noses of prospective OEMs. Hmmm...every day those old 1.4MB floppy gizmos look just a little bit more useless, don't they? Since space permits today, we are providing the Iomega news release in full below. Related stories are available to America Online members at Keyword: Market News. We also invite readers to sample Monday's Fool Portfolio report, where David Gardner offers his thoughts on the new announcement. INDEX: (Use the Search or Find feature of your word processor to locate the article number [Find: 1++, 3++, etc.]--or use AOL's Edit>>Find in Top Window Feature. If Find in Top Window is dimmed, just click on some text, anything, in the IOMG Today window and try again.)
1++MF Jeanie posts the Iomega news release. And now, the Best of the Board... Started 3 a.m. 9/30/96.
1+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: INTEL NEWS! Date: 96-09-30 08:40:11 EDT From: MF Jeanie
ROY, Utah--(BUSINESS WIRE)--Sept. 30, 1996--Iomega Corporation (NASDAQ:IOMG) today announced that Intel, Motorola, Texas Instruments and Symbios Logic plan to commit design teams and utilize their wafer fabrication capacity for the development and manufacture of the various IC (integrated circuits) technologies used in Iomega's personal storage products.
These companies are also considering several plans which include the sharing of intellectual property necessary to provide key second sourcing of components for Iomega's Zip, Jaz and Ditto drives.
Starting in the first quarter of 1997, these companies will join Adaptec and Atmel as suppliers who plan to provide silicon solutions to assist Iomega in meeting the demand for Zip, Jaz and Ditto drives. Establishing relationships with top integrated circuit suppliers will help secure high-volume manufacturing capabilities for Iomega, ultimately helping to drive down the overall cost of current and future models of Iomega's products.
"Demand for our Zip, Jaz and Ditto drives matches that of some of the most popular consumer electronics products. By securing manufacturing relationships with these companies, we are poised to meet this demand while ultimately driving down the cost of our products," said Kim B. Edwards, president and CEO of Iomega. "Gaining the support of this 'dream team' of suppliers signifies a major milestone for Iomega as a leader in defining the future of personal storage solutions."
Silicon Solution Alliances
Texas Instruments will provide advanced read channels, DRAMs, pre-amplifier and motion control technologies for Iomega's personal storage product lines. These integrated silicon solutions provide Iomega with the necessary cost effective Mixed-Signal technology, which is important in achieving Iomega's price performance goals. Texas Instruments will also provide ASIC solutions for Iomega's Ditto tape family.
"Meeting the demand for limitless storage by working with Iomega to define the next standard for removable storage is a strategic initiative that Texas Instruments is pleased to be a part of," said Rich Templeton, president, Texas Instruments Semiconductor Group. "We believe Iomega is a clear leader and a pacesetter in this market."
Motorola will integrate their microcontroller technologies with Iomega custom logic and additional memory functionality on single chip products. In addition, Motorola will provide design support, manufacturing capacity, and additional silicon solutions that further enable Iomega to produce cost effective personal storage systems.
"Iomega is ushering in a new era of personal storage, and we want to be a part of that," said Tommy George, president, semiconductor products sector, Motorola. "By lending significant expertise in design and manufacturing, we can help Iomega become successful as the recognized leader in providing personal storage solutions."
Intel will supply Iomega with a highly integrated silicon solution that combines microcontroller, disk controller, interface logic and memory technology on a single chip. Their efforts to provide high-volume production resources and drive electronics, intellectual property and technical expertise will result in improved cost and performance of Zip drives.
"Combining Intel's feature integration capabilities with our advanced, high volume manufacturing capability offers optimum performance and affordability to new types of personal storage products like Iomega's Zip drives," said Peter Green, general manager of Intel's Computing Enhancement Division.
Symbios Logic will supply highly integrated SCSI and ATAPI controllers which combine microcontroller, disk controller, interface logic and memory on a single integrated circuit. Symbios Logic's intellectual property and architectural expertise are key components to Iomega's Zip drive.
"Given our long history of strategic partnerships with industry leaders, Iomega is the clear choice to partner with in the personal storage market," said Gene Patterson, president and CEO of Symbios Logic, Inc. "By working to co-develop Iomega's personal storage products with our integrated silicon solution design and manufacturing resources, we can help Iomega further position itself as the market leader in personal storage solutions."
Adaptec will continue to use its I/O expertise to develop data path management/host interface silicon for Iomega. This silicon manages the movement of data between the host and media and ensures data integrity for Iomega's Jaz drive. Additionally, Adaptec will play a key role in supplying Iomega production capacity.
Atmel will provide leading edge non-volatile memory, programmable logic and application specific products for Iomega's personal storage solutions. 2+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Way to go, KE! Date: 96-09-30 09:02:52 EDT From: Bigfootmm
Well, the news does seem to make the point that it isn't the standard that is in question, nor is it production anymore. Must be marketing. No one is going to catch this company if it gets a move on with its marketing. KE must have been waiting for just these deals to nail down his production. Look out Q4!
By the end of the year there will be close to six million Zip drives out there and by the end of the first Q next year, maybe close to eight million, provided the marketing does what most of us think it will do. There are millions of people who do not back up their files and have never heard of Zip. Won't be long now until all that is remedied. Go Marketing!
Great Job Iomega! Wouldn't want to be Syquest's CEO this morning.
Bigfoot 3+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Supply Issues Date: 96-09-30 09:33:24 EDT From: MF ETurkey
Well, I guess when Edwards spoke at PC Expo of all supply issues being resolved with coming announcements, he wasn't kidding. Intel, Motorola, and TI added to Seagate.
The man can be a master of understatement.
Eric 4+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Comments Date: 96-09-30 09:54:22 EDT From: Kevinfurr
From the news:
>>Additionally, Adaptec will play a key role in supplying Iomega production capacity.<<
Huh? What's that mean?
>>Symbios Logic will supply highly integrated SCSI and ATAPI controllers which combine microcontroller, disk controller, interface logic and memory on a single integrated circuit.<<
Consolidating all those functions onto one chip. Can't you just hear the Zip getting cheaper?
Texas Instruments: "Meeting the demand for limitless storage by working with Iomega to define the next standard for removable storage is a strategic initiative that Texas Instruments is pleased to be a part of"
Intel: Son of Iomega
I wish I knew what Kim Edwards knows, but he must have had some interesting things to say to bring these players on board. 5+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Zip on a Chip! Date: 96-09-30 12:26:56 EDT From: Cynicalguy
Top selling products from MacWharehouse mail order catalog-they are the biggest! (http://www.warehouse.com/)
Top Selling Products 1 Zip Drive Mega Kit 2 Iomega 1GB Jaz Drive 3 PowerBook duo 2300c/100 4 QuarkXPress 3.32/Freehand 5.5 Bundle 5 Global Village Teleport
What is this stuff about Intel, Motorola, & Texas Instruments. A deal with Iomega. Nah, never happen. More hype from you internet guys. Why would some of the biggest companies in the world get in bed with Iomega? Keep dreaming.
Now some of you may believe.
GO IO!!!!!!!!! Cynicalguy Bill Bronsteen the plan coming together the NEW beginning of the beginning 6+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Motorola Date: 96-09-30 13:17:31 EDT From: MF ETurkey
The Motorola deal apparently has to do with Jaz, not Zip, in case anyone was confused...from the MOT press release...
AUSTIN, Texas--Sept. 30, 1996--Motorola's (NYSE:MOT) Advanced Microcontroller Division today announced its commitment to support Iomega Corporation with microcontroller (MCU) and manufacturing resources for Iomega's industry-leading removable hard disk drives.
Motorola's leadership in highly integrated microcontrollers and volume manufacturing capacity will help ensure a supply of chips for Iomega's popular removable drives.
"Iomega is a clear leader in the removable storage market and Motorola will help enable Iomega's continued success by providing silicon system solutions and high-volume manufacturing capacity to support demand for Iomega's products," said Brian Wilkie, corporate vice president and general manager of Motorola's Advanced Microcontroller Division. "Motorola's leadership in the microcontroller market makes us the logical supplier to drive silicon standards in the storage market segment."
The Jaz removable drive is a one-gigabyte, removable disk drive that allows users to expand their capacity one gigabyte at a time. It is ideal for storing data-intensive files, such as audio/visual, video and multimedia. Motorola's 68HC16Z1 (Z1) 16-bit microcontroller powers Iomega's popular Jaz drives.
It serves as a general controller for the Jaz drive, controlling the servo sequencer and SCSI interface to coordinate reads and writes of data to and from the disk. The Z1 also controls the spindle motor speed, head positioning, insertion and ejection of the removable cartridge and controls the status LEDs.
In a related announcement from Iomega today, Motorola was named as a key semiconductor manufacturer that has agreed to provide silicon solutions for Iomega's removable drives, in conjunction with Iomega's other technology partners.
The Advanced Microcontroller Division is a business unit within Motorola's Microcontroller Technologies Group (Austin, Texas) that designs, manufactures and markets the 68HC11, 68HC12, 68HC16, 68300 and PowerPC(tm) MPC500 families of microcontrollers. Motorola's microcontroller families, from 8-bit to 32-bit CISC and RISC, have over 250 products that cover the broad spectrum of performance, feature and price requirements for a wide range of customers and applications. 7+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Zip on a chip? Date: 96-09-30 13:44:39 EDT From: RB61
<<ROY, Utah--(BUSINESS WIRE)--Sept. 30, 1996--Iomega Corporation (NASDAQ:IOMG) today announced that Intel, Motorola, Texas Instruments and Symbios Logic plan to commit design teams and utilize their wafer fabrication capacity for the development and manufacture of the various IC (integrated circuits) technologies used in Iomega's personal storage products.
These companies are also considering several plans which include the sharing of intellectual property necessary to provide key second sourcing of components for Iomega's Zip, Jaz and Ditto drives. >>
About two months ago, someone posted here that IOMG was meeting with the above named companies for the purposes of designing a "Zip Chip" that would enable IOMG to greatly reduce the cost of the Zip drive and help provide the forward migration path needed to keep Zip in the forefront of it's industry. This *Zip Chip* looks like it will be a reality in as soon as the 1st qtr 1997. This is very much in keeping with KE's plan to make a cheap ($99) Zip drive that is profitable that will replace the floppy drive. This technology advancement which I am assuming Intel, Motorola, Texas Instruments, Symbios Logic and IOMG will be working on, will be the first major step needed to bring about a low cost drive. It is imperative that the drive be costed down to where it can economically replace the floppy (in the minds of the OEM's).
To have an announcement that these manufacturer's will be suppliers to IOMG in the 1st qtr of 1997 makes me wonder if the design for the *Zip Chip* is nearing completion, if not already there. To say the least, I am very happy with this announcement.
Fool On,
Robert 8+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Comments Date: 96-09-30 19:03:48 EDT From: PKeeler
>>> From: Kevinfurr
From the news:
>>Additionally, Adaptec will play a key role in supplying Iomega production capacity.<<
Huh? What's that mean? <<<
Several of the announced players said production capacity was available. I think that goes along with the statement that they will all share technology with each other. For instance, if Intel can't make enough Zip chips (what a fantastic problem!) then Adaptec capacity could be used to make that part.
Adaptec also makes the Zip Zoom and Jaz Jet ISA cards along with the new Zip PC Card. They also make an I/O controller on the Jaz drive.
Last three trading days have seen all the following companies mentioned with Iomega: Eastman-Kodak, Newsweek, Intel, Motorola, Texas Instruments, Hyundai (Symbios logic), Adaptec, AMI, and Phoenix. This goes along with already announced strategic partners/suppliers: Seagate, Seiko-Epson, Fujitsu, Sony, Matsushita, Roland and Sentinel.
Very impressive list...
PKeeler Patrick Keeler 9+++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Zip on a Chip II Date: 96-09-30 19:44:55 EDT From: Hey Chet
This deal was very difficult to put together. Intellectual property being the sticking point, everyone had to sit down and agree that even if they had something in the pipeline that may have overlapped one of the other suppliers the would have to choke on it. A perfect example is Symbios and Adaptec. Symbios would have to very concerned that they might put a spiffy idea on the table, then Adaptec would say "hey, we've been working on that already" then seeing a product hit the shelves nine months later with their "spiffy idea" in it. It would take several swat teams of lawyers from each partner to iron this out, and the six months that this has been in the works is probably just enough time to reach an agreement. The Zip Chip is not likely to be silicon for a little while, but it will be in 97. This is the biggest news I've seen in the 1 1/2 years I've owned this stock. Go Io! (;-)
Chet 10++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: War Story - the MIA's Date: 96-10-01 01:04:00 EDT From: Belflower
<<<<<<Subj: Another MIA returns Date: 96-09-30 20:24:56 EDT From: MF Jeanie
Welcome back, Belflower. Thought perhaps you got captured on the Isle of Iomega during that last bloody battle. Well perhaps you did and, like some of us, are just emerging from the POW camp of summer :)
Have missed your reports from the battlefront. Good to see you again. >>>>
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Thanks, Jeanie . . . I guess a lot of us have been missing in action . . . I just couldn't bear to write a "War Story" chronicling what could only have been the "IOMG Death March" of captured Foolish Marines.
All I could imagine was a long line of captured Foolish believers, driven fearfully before the gleeful soldiers of the Clan of the Bears who had routed the Foolish in a surprise attack that turned the battle. I could see the Bearish captors sadistically sticking bayonets into starving Foolish prisoners who marched through the unending heat of the summer, stumbling and clutching their margin calls.
Now, as the summer passes, a new group of powerful allies offer a credible hope of salvation to the Foolish marines. And, there is only one more day of quarterly accounting before momentum seems assured and liberation for Iomega will certainly be at hand in the coming year.
Only the strongest of the MIA captured Foolish marines have survived the long summer death march to possibly take part in the victories ahead if the Foolish can again progress in their crusade to liberate Iomega from the Clan of the Bears. Many of the Foolish have fallen by the wayside, mortally wounded, never to again advance their positions.
But, even now, more Foolish warriors stream to the battle to join with the armies of allies that have partnered with the Foolish. They are grimly determined not to repeat the mistakes of the Foolish who have fallen before them. And those who did survive are stronger and wiser (more foolish) for their ordeal.
Several battles have already been won and lost as the fortunes of this war ebb and flow. The outcome of the war, however, is still far from decided. 11++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Too Much Good News Queue Up? Date: 96-10-01 02:48:45 EDT From: NOVWOO
I am suffering from good news indigestion lately.
The implication of today's (9/30/96) Iomega drives' electronic/semiconductor parts manufacturers news is huge. My question and regret is why were announcements not made by manufacturers one manufacturer at a time in every two or three days as they *naturally* occurred to spread out this one piece of gigantic news? Iomega could then finally tie in with all these best-in-the-world manufacturers to announce the formation of this powerful electronic pact assisting Iomega in meeting demands for Iomega drives. Would there be too much news and not enough time for all the good news then?
Well, maybe indeed there are other pieces of good news on the heels, such as OEMs? I am refraining myself from making any predictions, although we all know some new Christmas product lines are coming to be unveiled around early to mid October. We don't want to steal the thunder from those news by predicting now, do we?
Back to back news releases of drastically upgraded manufacturers/suppliers sources and significantly increased OEMs/customers base may give Iomega the most powerful lift for its already successfully marketed products at the retail level. Iomega first successfully marketed their products onto some consumers' desks while planting the need of the branded products in lots of consumers' minds, then made the moves to swiftly expand both suppliers and OEM customers capacities, what a plan. The masterful art of tuning up the supply and demand together will ensure both Iomega suppliers' and OEM customers' successes, while they synergically enhance Iomega's own.
I don't even want to or need to read too much into today's news (9/30/96) for the time being.
End Report. Posts covered through 3 a.m. 10/1/96 _______________________________
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