Iomega To Exit Small-Form-Factor Storage
Iomega Corp. 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. 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, July 22, 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
"As planned and disclosed at the end of first quarter 2004, during the second quarter we conducted and finalized market research and analysis on our other new technology, DCT," said Werner Heid, president and chief executive of Iomega, in a statement. "As we have consistently disclosed, our DCT business plan was dependent upon significant consumer electronics OEM adoption. Unfortunately, we were not successful in securing such OEM commitments. Therefore, we investigated the possibility of bringing DCT to market as a stand-alone computer peripheral storage device.