SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C.  20549
                                



                           FORM 10-Q
                                
           QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
             OF THE SECURITIES EXCHANGE ACT OF 1934
                                
         FOR THE QUARTERLY PERIOD ENDED OCTOBER 1, 1995
                                
                 COMMISSION FILE NUMBER 0-11963
                                
                                
                            iomega 
                          Corporation
     (Exact name of registrant as specified in its charter)

        Delaware                                 86-0385884
 (State or other jurisdiction         (IRS employer identification number)
 of incorporation or organization)  


   1821 West Iomega Way, Roy, UT                           84067
 (Address of principal executive offices)               (ZIP Code)

Registrant's telephone number, including area code (801) 778-1000

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

                 Yes     X        No           

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of October 1, 1995.

   Common Stock, par value $.03 1/3                 19,431,676
      (Title of each class)                    (Number of shares)


<PAGE>

                         IOMEGA CORPORATION
                                  
                         TABLE OF CONTENTS



                                                            Page


PART I -  FINANCIAL INFORMATION 

     Condensed consolidated balance sheets at
       October 1, 1995 and December 31, 1994. . . . .          2

     Condensed consolidated statements of operations
       for the three months ended October 1, 1995
       and October 2, 1994. . . . . . . . . . . . . .          4

     Condensed consolidated statements of operations
       for the nine months ended October 1, 1995
       and October 2, 1994. . . . . . . . . . . . . .          5

     Condensed consolidated statements of cash flows
       for the nine months ended October 1, 1995
       and October 2, 1994. . . . . . . . . . . . . .          6

     Notes to condensed consolidated financial statements . .  7

     Management's discussion and analysis of financial
       condition and results of operations. . . . . .         12

PART II - OTHER INFORMATION. . . . . . . . . . . . . . .      15

  SIGNATURES. . .                                             16

  EXHIBIT INDEX .                                             17

<PAGE>

                         IOMEGA CORPORATION
                                  
                CONDENSED CONSOLIDATED BALANCE SHEETS
                                  
                               ASSETS

<TABLE>

                                              October 1,      December 31,
                                                1995            1994    
                                                    (In thousands)

<C>                                           <S>              <S>             
CURRENT ASSETS:
   Cash and cash equivalents                  $      -         $ 16,861 
   Temporary investments                             -            2,932 
   Trade receivables (net)                      53,519           18,892 
   Inventories                                  52,681           17,318 
   Income taxes receivable                           -            1,682 
   Deferred income taxes (net)                   2,037              477 
   Other current assets                          4,092            2,395 
                                               --------         -------
     Total current assets                      112,329           60,557 

EQUIPMENT AND LEASEHOLD IMPROVEMENTS, at cost   81,642           59,193 
   Less - accumulated depreciation and 
   amortization                                (47,740)         (43,917)
                                              ----------        ---------
   Net equipment and leasehold improvements     33,902           15,276 

DEFERRED INCOME TAXES (NET)                      1,408                - 
                                              ----------        ---------
                                              $147,639         $ 75,833 
                                              ==========       ==========
</TABLE>

           The accompanying notes to condensed consolidated
  financial statements are an integral part of these balance sheets.



                         IOMEGA CORPORATION
                                  
                CONDENSED CONSOLIDATED BALANCE SHEETS
                                  
                LIABILITIES AND SHAREHOLDERS' EQUITY


<TABLE>
                                           October 1,      December 31,
                                             1995           1994     
                                                (In thousands)

<C>                                        <S>             <S>
CURRENT LIABILITIES:
   Accounts payable                         $ 47,366       $  7,228  
   Other accrued liabilities                  23,414         18,511  
   Notes payable                              21,791              -  
   Income taxes payable                        2,014              -  
   Current portion of capitalized lease 
      obligations                                462              -  
                                            ---------        -------- 
     Total current liabilities                95,047         25,739  

CAPITALIZED LEASE OBLIGATIONS, net of 
    current portion                              924              -  

SERIES A CONVERTIBLE PREFERRED STOCK, Authorized
   1,200,000 shares, 258,816 outstanding 
   shares at December 31, 1994, none outstanding
   at October 1, 1995                              -          1,031  

SHAREHOLDERS' EQUITY:
   Preferred stock, $.01 par value; authorized
     3,300,000 shares, none issued                 -              -  
   Series C junior participating preferred
     stock, authorized 250,000 shares, 
     none issued                                   -              -  
   Common stock, $.03 1/3 par value; authorized
     30,000,000 shares, 19,431,676 and 18,519,749 
     shares outstanding at October 1, 1995 and
     December 31, 1994, respectively             648            617  
   Additional paid-in capital                 51,690         48,258  
   Notes receivable from shareholders              -           (597) 
   Retained earnings (deficit)                  (670)           785  
                                               -------       --------   
       Total shareholders' equity             51,668         49,063  
                                            ---------       ---------
                                            $147,639       $ 75,833  
                                            =========      ==========
</TABLE>

           The accompanying notes to condensed consolidated
  financial statements are an integral part of these balance sheets.


                         IOMEGA CORPORATION
                                  
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  
                             (Unaudited)

<TABLE>
                                          For the Three Months Ended  
                                          October 1,   October 2,
                                             1995            1994    
                                           (In thousands except
                                               per share data)

<C>                                        <S>            <S>
SALES                                       $ 84,721      $ 35,534   
   
COST OF SALES                                 63,225        23,039 
                                            ---------     --------
   Gross Margin                               21,496        12,495 


OPERATING EXPENSES:
   Selling, general and administrative        13,878         8,437 
   Research and development                    4,691         3,889 
                                           ----------      --------
     Total operating expenses                 18,569        12,326 
                                           ----------      --------

OPERATING INCOME                               2,927           169 
 
   Interest and other income and expense        (230)          873 
                                           -----------     ---------
INCOME BEFORE INCOME TAXES                     2,697         1,042 
 
   Benefit (provision) for income taxes         (672)        1,426 
                                           ------------     ---------
NET INCOME                                   $ 2,025      $  2,468 
                                           ============   =========
NET INCOME PER COMMON SHARE                 $   0.10      $   0.13 
                                           ===========    ========
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
  (1994 includes effects of 5-for-4 
  stock split)                                21,206       18,950 
                                           ===========    =========
</TABLE>

           The accompanying notes to condensed consolidated
    financial statements are an integral part of these statements.


                         IOMEGA CORPORATION
                                  
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  
                             (Unaudited)

<TABLE>
                                           For the Nine Months Ended  
                                           October 1,        October 2,
                                             1995            1994    
                                           (In thousands except
                                               per share data)

<C>                                         <S>              <S>
SALES                                       $177,427         $102,907   
   
COST OF SALES                                132,527           67,796 
                                             -------         ---------
   Gross Margin                               44,900           35,111 


OPERATING EXPENSES:
   Selling, general and administrative        33,389           27,061 
   Research and development                   12,793           11,196 
                                           ----------        ---------
     Total operating expenses                 46,182           38,257 
                                           ----------        ---------

OPERATING LOSS                                (1,282)          (3,146)
 
   Foreign currency (loss) gain               (1,232)             119 
   Interest and other income and expense         927            1,140 
                                           ----------        ---------
LOSS BEFORE INCOME TAXES                      (1,587)          (1,887)
 
   Benefit (provision) for income taxes          167           (1,274)
                                            ----------       ---------
NET LOSS                                    $ (1,420)        $ (3,161)
                                            ==========       =========
NET LOSS PER COMMON SHARE                   $  (0.07)        $  (0.17)
                                            ==========       =========
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
  (1994 includes effects of 5-for-4 
  stock split)                                19,044           18,460 
                                            ==========       =========
</TABLE>

           The accompanying notes to condensed consolidated
    financial statements are an integral part of these statements.


                        IOMEGA CORPORATION
                                  
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)

<TABLE>
                                               For the Nine Months Ended   
                                               October 1,        October 2,
                                                 1995            1994     
                                                   (In thousands)
<C>                                            <S>              <S>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:  
   Net Loss                                     $ (1,420)       $ (3,161)
   Non-cash Revenue and Expense Adjustments:
     Depreciation and amortization expense         6,198           5,138 
     Deferred income tax (benefit) provision      (2,968)          2,700 
     Change in restructuring reserve                   -           1,015 
     Other                                          (489)            128 
   Changes in Assets and Liabilities:
     Trade receivables (net)                     (34,627)          2,215 
     Inventories                                 (35,363)         (2,066)
     Income taxes receivable/payable               3,696            (831)
     Other current assets                         (1,980)           (464)
     Accounts payable                             40,138             490 
     Accrued liabilities                           5,058            (722)
     Net cash provided from (used in)            --------         --------
       operating activities                      (21,757)          4,442 

 CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of equipment and leasehold 
      improvements                               (24,221)         (3,697)
   Purchase of temporary investments              (2,090)              - 
   Sale of temporary investments                   5,022               - 
   Net increase in other assets                        -              (5)
   Proceeds from sale of research and development 
     assets                                            -           2,792 
                                                ----------       --------
     Net cash used in investing activities       (21,289)           (910)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from sales of Common Stock             1,914             201 
   Proceeds from notes payable and capital leases 79,222               - 
   Payments on notes payable and capital leases  (56,045)              - 
   Tax benefit from early dispositions of
     employee stock                                  244               - 
   Purchase of Common Stock                            -            (305)
   Conversion of Series A Convertible Stock          (30)              - 
   Proceeds from notes receivable from sharehold     880               - 
     Net cash provided from (used in)            ---------        ---------
       financing activities                       26,185            (104)
                                                 ---------        ---------
NET INCREASE (DECREASE)IN CASH AND 
    CASH EQUIVALENTS                             (16,861)          3,428 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD  16,861          18,804
                                                ----------       --------- 
CASH AND CASH EQUIVALENTS AT END OF PERIOD      $      -        $ 22,232 
                                                ==========      =========
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
   Net (payable) receivable associated with 
     revaluation of forward exchange contracts  $   (892)       $    109 
                                               ===========     =========

   Sale of common stock for a note              $    283       $      -
                                               ===========     ========= 
   Conversion of Series A Preferred Stock to
     Common Stock                               $  1,205       $      - 
                                               ===========    ==========

</TABLE>
           The accompanying notes to condensed consolidated
    financial statements are an integral part of these statements. 
        
                     IOMEGA CORPORATION
                                
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(1)  SIGNIFICANT ACCOUNTING POLICIES

     In the opinion of management, the accompanying condensed consolidated
     financial statements reflect all adjustments (consisting only of normal
     recurring adjustments) which are necessary to present fairly the financial
     position of Iomega Corporation and subsidiaries (the "Company") as of
     October 1, 1995 and December 31, 1994, the results of operations for the
     three-and nine-month periods ended October 1, 1995 and October 2, 1994,
     and cash flows for the nine-month periods ended October 1, 1995 and
     October 2, 1994.

     The results of operations for the nine-month period ended October 1, 1995
     are not necessarily indicative of the results for the entire year.

     These unaudited condensed consolidated financial statements should be read
     in conjunction with the consolidated financial statements and notes
     included in or incorporated into Iomega Corporation's latest Annual Report
     on Form 10-K.

     Principles of Consolidation -- The condensed consolidated financial
     statements include the accounts of the Company and its wholly owned
     subsidiaries after elimination of all material intercompany accounts and
     transactions.

     Revenue Recognition -- Revenue is recognized when units are shipped to
     customers.  However, revenue recognition is deferred on shipments to
     distributors whose inventory is in excess of normal distributor inventory
     requirements.  The Company's general policy is not to accept returns of
     product except for those products under warranty or for which the customer
     has a right of return agreement.  The gross margin associated with the
     deferral of sales in excess of normal distributor inventory requirements
     due to right of return agreements totaled $1,610,000 and $1,947,000 at
     October 1, 1995 and December 31, 1994, respectively, and is recorded in
     deferred revenue as a component of other accrued liabilities.

     Foreign Currency Translation -- For purposes of consolidating foreign
     operations, the Company has determined the functional currency for its
     foreign operations is the U.S. dollar.  Therefore, translation gains and
     losses are included in the determination of income as a component of
     interest and other income and expense.

     Cash Equivalents and Temporary Investments -- The Company considers all
     highly liquid debt instruments purchased with maturities of three or fewer
     months to be cash equivalents.  Instruments with maturities in excess of
     three months are classified as temporary investments.  At December 31,
     1994, all temporary investments had maturities less than six months. 
     Accordingly, the Company classifies all cash equivalents and temporary
     investments as held to maturity.  Cash equivalents and temporary
     investments  consist primarily of commercial paper, banker's acceptances,
     investments in money market mutual funds and certificates of deposit and
     are recorded at cost which approximates market value.  

     The Company's policy is to invest in high quality commercial paper of
     reputable companies rated at A2P2 or above.  The diversification of risk
     is consistent with Company policy to maintain liquidity and ensure the
     safety of principal.

                        IOMEGA CORPORATION

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


(1)  SIGNIFICANT ACCOUNTING POLICIES (CONCLUDED)

     Inventories -- Inventories include direct materials, direct labor and
     manufacturing overhead costs and are recorded at the lower of cost 
     (first-in, first-out) or market and consist of the following:

                                October 1,   December 31,
                                  1995           1994    

                                   (In thousands)

          Raw materials          $ 32,810     $  7,524
          Work-in-process          17,645        4,839
          Finished goods            2,226        4,955
                                ---------     ---------
                                 $ 52,681     $ 17,318
                                =========     =========
     
     Reclassifications -- Certain reclassifications were made to the 1994
     condensed consolidated financial statements to conform with the 1995
     presentation.

     Net Income (Loss) Per Common Share -- Net income (loss) per common share
     is based on the weighted average number of shares of common stock and
     dilutive common stock equivalent shares outstanding during the respective
     periods.  Common stock equivalent shares consist primarily of stock
     options and convertible preferred stock that have a dilutive effect when
     applying the treasury stock method.  In periods where losses are recorded,
     common stock equivalents would decrease the loss per share and are
     therefore not added to weighted average shares outstanding.  The
     outstanding shares and earnings per share have been restated for all 1994
     periods presented to reflect the impact of the Stock Split described in
     Note 2.

(2)  STOCK SPLIT

     On October 27, 1994 the Company's Board of Directors declared a 5-for-4
     stock split which was effected in the form of a 25% common stock dividend
     paid on November 23, 1994 to stockholders of record at the close of
     business on November 9, 1994 ("Stock Split").  The Company paid cash in
     lieu of issuing fractional shares. 

     The transaction was accounted for as a stock split. Of the shares of
     Common Stock distributed by the Company in connection with the Stock
     Split, approximately 3,017,000 were treasury shares and the remainder were
     authorized but unissued shares.  The cost of the treasury shares and
     authorized but unissued shares was recorded as a reduction in paid-in
     capital.  All earnings per share and outstanding shares have been
     retroactively restated in the 1994 financial statements.



                        IOMEGA CORPORATION

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


(3)  INCOME TAXES

     The components of and the changes in the net deferred tax assets and
     liabilities for the nine month period ended October 1, 1995 are as follows
     (in thousands):


                                             Deferred
                                December 31,   (Expense)    October 1,
                                    1994     Benefit      1995   
     Deferred tax assets:
       Bad debt reserves           $   482   $   557   $ 1,039
       Inventory reserves              940       700     1,640
       Fixed asset reserves             36        29        65    
       Accrued expense reserves      4,596       787     5,383
       Unrealized foreign currency       -       304       304
       Inventory unicap adjustment     160       121       281
       Accelerated depreciation          -       292       292
       Foreign net operating loss  
         carryover                   1,493     1,976     3,469
       Research credit carryover     5,365    (2,323)    3,042
       Intercompany profit in 
         inventory                      95       (14)       81
       Other                          (216)        2      (214)
                                   --------   -------   -------
     Total deferred tax assets      12,951     2,431    15,382

     Valuation allowance           (12,333)      396   (11,937)
                                  ---------   -------  --------     
     Deferred tax asset net of 
       valuation allowance             618     2,827     3,445

     Deferred tax liabilities:
       Accelerated depreciation       (141)      141         -
                                 ----------   --------  -------
     Net deferred tax asset        $   477   $ 2,968   $ 3,445
                                 ==========  =========  =======
     
     Cash paid for income taxes was $50,000 for the first nine months of 1995
     and $84,000 for the corresponding period in 1994.  A tax refund of
     $1,332,000 was received during the first nine months of 1995.


                        IOMEGA CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(4)  OTHER MATTERS

     Significant Customers -- During the fiscal quarter and nine-month periods
     ended October 1, 1995, a single customer accounted for 11% and 10%,
     respectively, of consolidated sales.  During the fiscal quarter and 
     nine-month periods ended October 2, 1994, sales to another single customer
     accounted for 12% and 11%, respectively, of the Company's sales.  No other
     single customer accounted for more than 10% of the Company's sales for
     these periods.

     Notes Receivable from Related Parties -- In September 1993, the Company
     loaned an executive officer approximately $679,000 on a full recourse
     basis as part of the officer's severance package; a portion of the loan
     was used by the executive to exercise stock options.  This loan is
     included in note receivable from shareholder in the accompanying
     consolidated financial statements.  The loan was paid in full with accrued
     interest during the first quarter of 1995.

     In January 1995, the Company loaned an executive officer approximately
     $283,000 as part of the officer's severance package.  A portion of the
     loan was used by the executive to exercise stock options.  The loan was
     paid in full with accrued interest during the second quarter of 1995.

     Forward Exchange Contracts -- The Company's foreign subsidiaries sell
     products in several foreign currencies.  In order to hedge the estimated
     cash flow (revenues less expenses) which is remitted to the parent
     company, the Company has entered into forward exchange contracts to sell
     foreign currencies.  The contracts mature at February 1996.

     The outstanding forward exchange sales contracts at October 1, 1995 are as
     follows:

               Deutsche Marks         12,170,000 DM
               Great Britain Pound     1,095,000 GBP
               French Franc           14,950,000 FRF
               Spanish Pesta         222,000,000 ESB
               Italian Lira        2,490,000,000 ITL

     The forward contracts are marked to market by obtaining forward rates from
     financial institutions.  Gains and losses on foreign currency contracts
     intended to be used to hedge operating requirements are reported currently
     in income.  The Company's risk in these transactions includes the cost of
     replacing, at current market rates, these contracts in the event of
     default by the counterparty.


                        IOMEGA CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONCLUDED)



(6)  CONVERSION OF SERIES A CONVERTIBLE PREFERRED STOCK

     Effective June 16, 1995, the Company exercised its right to require the
     conversion of all outstanding Series A Convertible Preferred Stock
     ("Series A") into the Company's Common Stock pursuant to the original
     conversion terms.  Upon conversion, 106,200 shares of Common Stock were
     issued to the Series A shareholders.  Any fractional shares were paid cash
     in lieu of stock.

     Common shares issued on conversion of the Series A shares were recorded at
     the net carrying value of Series A shares, plus accrued dividends.

(7)  COMMITMENTS

     Loan Agreement -On July 5, 1995, the Company entered into a loan agreement
     with the Commercial Finance Division of Wells Fargo Bank, N.A.  The
     agreement permits revolving loans, term loans and letters of credit up to
     an aggregate outstanding principal amount equal to the lesser of $60
     million or 80% of eligible accounts receivable.  The revolving credit line
     bears interest at the bank's prime rate plus 1%, and the Wells Fargo term
     loans bear interest at the bank's prime rate plus 1.25%.  At October 1,
     1995, borrowings under the revolving credit line were $21.8 million,
     consisting of $17.9 million under the revolving credit facility and $3.9
     million under the term loan facility.  Total availability under the Wells
     Fargo agreement at October 1, 1995 was $28.8 million.  The agreement
     expires June 30, 1996.  Certain covenants within the agreement require the
     Company maintain minimum levels of working capital and net worth.

     Capital Leases - Under the above agreement with Wells Fargo, the Company
     may also secure financing of equipment purchases from third parties up to
     a maximum of $20 million, less term loans outstanding to Wells Fargo.  In
     August of 1995, the Company entered into an agreement to provide capital
     lease financing for the purchase of certain manufacturing equipment.  The
     total amount of capital lease commitments at October 1, 1995 is $1.4
     million, of which $462,000 is classified as a current liability in the
     accompanying balance sheet.


                       IOMEGA CORPORATION
                                
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS


On October 27, 1994, the Company's Board of Directors declared a 5-for-4 stock
split effected in the form of a 25% common stock dividend paid on November 23,
1994 (the "Stock Split").  The following discussion gives retroactive effect to
the Stock Split for all 1994 periods presented.

RESULTS OF OPERATIONS

The Company reported record quarterly sales of $84.7 million in the third 
quarter ended October 1, 1995, and returned to profitability after posting 
losses in the first two quarters of 1995.  The Company recorded net income of
$2.0 million, or $0.10 per share, for the third quarter ended October 1, 
1995, compared to net income of $2.5 million, or $0.13 per share, for the 
third quarter ended October 2, 1994.  Net income for the third quarter of 
1994 included a one-time tax benefit of $1.4 million, or $0.08 per share.  
For the nine months ended October 1, 1995, sales were $177.4 million, 
resulting in a net loss of $1.4 million, or $0.07 per share.  These results 
are compared to sales of $102.9 million, and a net loss of $3.2 million, or 
$0.17 per share, for the same period in 1994.

Sales for the three and nine months ended October 1, 1995 increased by $49.2
million, or 138%, and $74.5 million, or 72%, respectively, when compared to the
corresponding periods of 1994.  The positive sales results were due to the
introduction of the new Zip product line which began shipping at the end of the
first quarter of 1995 and increased sales of Ditto tape products.  These
increased sales have been partially offset by the expected decline in the sales
of Bernoulli products.  Ditto sales in the third quarter of 1995 increased by
117% in North America and 57% in Europe over the third quarter of 1994. 
International sales, primarily to customers located in Europe, represented 18.2%
and 25.2% of sales for the three- and nine-month periods ended October 1, 1995,
respectively, compared to 26.6% and 32.9% for the corresponding periods of 
1994.  Management expects increased sales of Zip and Ditto products in the 
fourth quarter of 1995.  Management also expects fourth quarter sales to be 
enhanced by the previously announced Jaz product line which is expected to 
begin shipping by the end of the fourth quarter.  These increases are 
expected to be partially offset by declines in Bernoulli product sales.  
However, the Company is experiencing component shortages which may continue 
to limit production.  There can be no assurance that future sales will 
materialize as expected.

The Company's gross margin percentages for the three- and nine-month periods
ended October 1, 1995 were 25.4% and 25.3%, respectively, compared to 35.2% and
34.1% reported for the comparable periods of 1994.  The decline in gross margin
percentages is due to a shift in product mix from higher margin Bernoulli
products to lower margin Ditto and Zip products.  Gross margins thus far in 1995
have also been negatively impacted by start-up costs related to the Zip and Jaz
products.  The third quarter gross margin percentage of 25.4% represented an
improvement over the second quarter gross margin percentage of 22.2%.  This
improvement is primarily due to the impact of increased sales of Zip disks, 
which more than offset the decline in higher margin Bernoulli sales.



                       IOMEGA CORPORATION
                                
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Selling, general and administrative expenses represented 16.4% and 18.8% of 
sales for the third quarter and first nine months of 1995, compared to 23.7% 
and 26.3% for the same periods of 1994.  The decline in percentages is due to 
the increased sales volumes in 1995.  The actual selling, general and 
administrative expenses increased by $5.4 million for the three-month and 
$6.3 million for the nine-month periods ended October 1, 1995 as compared to 
the prior year periods.  The increased expenses are primarily the result of 
advertising expenses incurred to launch new products, variable selling 
expenses, and increased salaries and wages resulting from increased headcount 
in all areas of sales, marketing and administration.  Management expects 
selling, general and administrative expenses to increase further in the 
fourth quarter of 1995 due to additional advertising expenses, trade show 
expenses, and payroll-related costs.

Research and development expenses were 5.5% and 7.2% of sales for the three - 
and nine-month periods ended October 1, 1995, respectively, compared to 10.9% 
for both the three- and nine-month periods ended October 2, 1994. The decline in
percentages is due to the increased sales volumes in 1995.  The actual research
and development expenses have increased by $0.8 million and $1.6 million for the
third quarter and first nine months of 1995 compared to the same periods of 
1994.  These increases were primarily the result of expenditures related to the
development of the Zip, Ditto and Jaz products.  Management expects continued
increases in research and development expenses in the fourth quarter of 1995 as
the result of the resources needed for future product development and
enhancement.

During the first quarter of 1995, the Company recorded a net foreign currency
loss of $1.0 million as a result of the U.S. dollar weakening against European
currencies.  The majority of this decline took place in March.  The Company also
recorded interest expense of approximately $.3 million, primarily in the third
quarter of 1995.  These expenses have been partially offset by interest income,
royalties and other income.

For the third quarter of 1995, the Company recorded a tax provision of $0.7
million representing an effective tax rate of 24.9%.  For the first nine months
of 1995, the Company recorded a tax benefit of $0.2 million representing 10.5%
of the pre-tax loss for the period.  The Company expects the effective income 
tax rate to increase in the future to the statutory rate of 34% for federal 
income tax and approximately 5% for state income taxes.  The timing of the 
rate increase will depend on future taxable income and the utilization of 
available tax credits.

LIQUIDITY AND CAPITAL RESOURCES

At October 1, 1995, the Company had cash and cash equivalents of $0, working
capital of $17.3 million, and a ratio of current assets to current liabilities
of 1.2 to 1.  For the first nine months of 1995, the Company has used $16.8
million in cash and cash equivalents consisting of $21.7 million used in
operating activities, and $21.3 million in investing activities, offset by $26.2
million provided by financing activities.


                        IOMEGA CORPORATION

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONCLUDED)


On July 5, 1995, the Company entered into a loan agreement with the Commercial
Finance Division of Wells Fargo Bank, N.A.  The agreement permits revolving
loans, term loans and letters of credit up to an aggregate outstanding principal
amount equal to the lesser of $60 million or 80% of eligible accounts 
receivable.  The revolving credit line bears interest at the bank's prime 
rate plus 1%, and the Wells Fargo term loans bear interest at the bank's 
prime rate plus 1.25%.  At October 1, 1995, borrowings under the revolving 
credit line were $21.8 million, consisting of $17.9 million under the 
revolving credit facility and $3.9 million under the term loan facility.   
Total availability under the Wells Fargo agreement was $28.8 million.  The 
agreement expires June 30, 1996.  Certain covenants within the agreement 
require the Company maintain minimum levels of working capital and net worth.
Under the agreement with Wells Fargo, the Company may also secure financing 
of equipment purchases from third parties up to a maximum of $20 million, 
less term loans outstanding to Wells Fargo.  In August of 1995, the Company 
entered into an agreement to provide capital lease financing
for the purchase of certain manufacturing equipment.  The total of capital lease
commitments at October 1, 1995 is $1.4 million, of which $462,000 is classified
as a current liability in the accompanying balance sheet.

The Company's balance sheet at October 1, 1995 reflected short-term borrowings
of $22.3 million, representing utilization of the revolving credit line with
Wells Fargo of $17.9 million, term loans with Wells Fargo of $3.9 million, and
the short-term portion of capital lease obligations of $.5 million.  In 
addition, the long-term portion of capital lease obligations totaled $.9 
million at October 1, 1995.  The borrowings have been used to finance working 
capital needs, including increases in inventory and accounts receivable and 
capital expenditures related to production volume increases.

Accounts receivable have increased by $34.6 million at October 1, 1995 compared
to December 31, 1994, due to increased sales, particularly in the last portion
of the third quarter.  Inventory increased by $35.4 million during the first 
nine months of 1995 due to build-ups in manufacturing capacity.  The 
increases in receivables and inventory were partially offset by increases in 
accounts payable and accrued liabilities of $45.2 million and proceeds from 
the sale of common stock of $1.9 million.

Fixed asset additions for the first nine months of 1995 totaled $24.2 million. 
These additions are primarily related to increased manufacturing capacity for
Zip, Ditto and Jaz products.  The Company expects capital expenditures in future
quarters to continue to be significant as production capacity is added at the
Company's current manufacturing facility, as well as tooling at vendor 
facilities and third-party manufacturing facilities.

In addition to the credit facility with Wells Fargo discussed above, the Company
is continuing to investigate other sources of financing.  However, there can be
no assurance that additional financing will be secured or that funds available
under the existing finance arrangements will be sufficient.


PART II - OTHER INFORMATION

                        IOMEGA CORPORATION


Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits.  The exhibits listed on the Exhibit Index filed as
               a part of this Quarterly Report on Form 10-Q are incorporated
               herein by reference.

          (b)  Reports on Form 8-K.  No reports on Form 8-K were filed by the
               Company during the quarter for which this report is filed.
                                
                                
                                
                                
                                
                                
                            SIGNATURE


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.






                                               IOMEGA CORPORATION       
                                                   (Registrant)





                                        /s/ Kim B. Edwards             
Dated: November 15, 1995                Kim B. Edwards
                                        President and Chief Executive
                                        Officer





                                        /s/ Leonard C. Purkis          
Dated: November 15, 1995                Leonard C. Purkis
                                        Senior Vice President, Finance,
                                        Chief Financial Officer and
                                        Treasurer







                          EXHIBIT INDEX


The following exhibit is filed as part of this Quarterly Report on Form 10-Q:

Exhibit No.     Description                             

10.32           Iomega Incentive Plan for Kim B. Edwards

10.33(a)        Loan Agreement dated July 5, 1995 between Iomega Corporation
                and Wells Fargo Bank, N.A., Commercial Finance Division

10.33(b)        Security Agreement dated July 5, 1995 between Iomega
                Corporation and Wells Fargo Bank, N.A., Commercial Finance
                Division

10.33(c)        Wells Fargo Bank Continuing Commercial Letter of Credit
                Agreement