----

----

| (Mark      One)                                                                                                                                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES                                                                                                                                                                                                                                                                               |
|                                                             EXCHANGE ACT OF 1934 |

| Delaware                                                                | 86-0385884                               |
|-------------------------------------------------------------------------|------------------------------------------|
| (State      or other jurisdictionof      incorporation or organization) | (IRS      employer identificationnumber) |

| Common      Stock, par value $0.03 1/3 | 54,783,070 |
|----------------------------------------|------------|

| (Title      of each class) | (Number      of shares) |
|----------------------------|-------------------------|

----

IOMEGA CORPORATION 

TABLE OF CONTENTS

|                                                 |   | Page  |
|------------------------------------------------------|--------|------------|
|  Note Regarding Forward-Looking      Statements |   | 2          |

Condensed Consolidated Balance Sheets at March 30,2008

|                            and December 31,      2007          |   | 3 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---|

|   |   Condensed Consolidated Statements of Operations for the Three      Months |
|--------|---------------------------------------------------------------------------------------|

|                       Ended March 30, 2008 and April 1, 2007 |   | 4 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---|

|   |   Condensed Consolidated Statements of Cash Flows for the      Three Months |
|--------|---------------------------------------------------------------------------------------|

|                            Ended March 30, 2008 and April 1,    2007 |   | 5 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---|

|   |   Notes to Condensed Consolidated Financial      Statements |   | 6 |
|--------|-----------------------------------------------------------------------|--------|---|

|   | Item      2.  Management’s Discussion and Analysis of      Financial |
|--------|--------------------------------------------------------------------------------------|

|                           Condition and Results of Operations |   | 20 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----|

|  Item      3.    Quantitative and      Qualitative Disclosures About Market Risk |   | 31 |
|-----------------------------------------------------------------------------------------------------------|--------|----|

|  Item      4.    Controls and      Procedures |   | 31 |
|------------------------------------------------------------------------|--------|----|

|  Item      1.  Legal Proceedings |   | 32 |
|-------------------------------------------------|--------|----|

|  Item      1A. Risk Factors |   | 32 |
|----------------------------------|--------|----|

|  Item      2.  Unregistered Sales of Equity      Securities and Use of Proceeds |   | 39 |
|------------------------------------------------------------------------------------------------|--------|----|

|  Item      6.  Exhibits |   | 39 |
|----------------------------------------|--------|----|

|  Signatures |   | 40 |
|------------------|--------|----|

|  Exhibit Index |   | 41 |
|---------------------|--------|----|

----

Table of Contents

NOTE 

| ·   | Our      goals for 2008, which are: (1) to continue to grow and deliver sustained      profitability; (2) to further increase the size of our hard disk drive      (“HDD”) business and excel in the high-growth network attached storage      (“NAS”) market; (3) to ramp the next generation of REV®      products and (4) to work with EMC to complete the acquisition of Iomega      which will allow us greater resources and opportunities to accomplish our      other goals; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      goal to maintain profitability in 2008 and to improve cash flow from      operations through containing operating expense spending, growing HDD and      REV product sales and maintaining or improving the gross margins of      HDD; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      fourth quarter being seasonally strong, or our summer months being      seasonally slow in Europe due toholidays; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Expected      future taxes including taxes on repatriation of foreign cash to the      U.S.; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Expected      volatility, expected term and value of stock  options; |
|--------------------|----------------------------------------------------------------------|

| ·   | Risk      factors we face, including all discussions in the section below entitled      “Risk Factors”, concerning things that could happen to Iomega, its      products, employees, profits or other aspects of the business in the      future; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      focus or intended focus for our sales efforts  and |
|--------------------|-------------------------------------------------------------|

| ·   | Our      belief that our balance of cash, cash equivalents and temporary      investments, together with cash flows from future operations, will be      sufficient to fund anticipated working capital requirements, capital      expenditures and cash required for other activities for at least one      year. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

BALANCE SHEETS

|                                                                                                                                                                  |   | Mar.      30,  2008 |    |   | Dec.      31, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|-------------------------|--------|
|                                                                                                                                                                  |   | (Unaudited)                   |    |   |                    |   |
| Current      Assets:                                                                                                                                                  |   |                          |    |   |                    |   |
| Cash and cash      equivalents                                                                                                                                        |   | $                             | 39,699  |   |                    | $      | 53,559 |   |
| Restrictedcash                                                                                                                                                        |   |                          | 107     |   |                    |   | 93 |   |
| Temporary      investments                                                                                                                                            |   |                          | 7,909   |   |                    |   | 9,961 |   |
| Trade receivables, less      allowance for doubtful accounts of$2,233 at Mar. 30, 2008 and      $2,507 at Dec. 31, 2007                                               |   |                          | 41,000  |   |                    |   | 41,101 |   |
| Inventories                                                                                                                                                           |   |                          | 59,078  |   |                    |   | 79,883 |   |
| Deferred income      taxes                                                                                                                                            |   |                          | 2,175   |   |                    |   | 2,175 |   |
| Other current      assets                                                                                                                                             |   |                          | 3,323   |   |                    |   | 2,902 |   |
| Total Current      Assets                                                                                                                                             |   |                          | 153,291 |   |                    |   | 189,674 |   |
|                                                                                                                                                                  |   |                          |    |   |                    |   |   |   |
| Property      and Equipment, at Cost                                                                                                                                  |   |                          | 63,407  |   |                    |   | 63,869 |   |
| Accumulated      Depreciation                                                                                                                                         |   |                          | (59,955 | )      |                    |   | (60,002 | ) |
| Net Property and      Equipment                                                                                                                                       |   |                          | 3,452   |   |                    |   | 3,867 |   |
|                                                                                                                                                                  |   |                          |    |   |                    |   |   |   |
| Goodwill                                                                                                                                                              |   |                          | 9,818   |   |                    |   | 9,818 |   |
| Other      Intangibles, Net                                                                                                                                           |   |                          | 790     |   |                    |   | 840 |   |
| Long      Term Cash Investments                                                                                                                                       |   |                          | -       |   |                    |   | 1,000 |   |
| Other      Assets                                                                                                                                                     |   |                          | 9       |   |                    |   | 9 |   |
| Total Assets                                                                                                                                                          |   | $                             | 167,360 |   |                    | $      | 205,208 |   |
|                                                                                                                                                                  |   |
| Current      Liabilities:                                                                                                                                             |   |                          |    |   |                    |   |   |   |
| Accounts    payable                                                                                                                                                   |   | $                             | 26,148  |   |                    | $      | 61,951 |   |
| Other current      liabilities                                                                                                                                        |   |                          | 23,196  |   |                    |   | 27,862 |   |
| Income taxes      payable                                                                                                                                             |   |                          | 4,145   |   |                    |   | 3,368 |   |
| Total Current      Liabilities                                                                                                                                        |   |                          | 53,489  |   |                    |   | 93,181 |   |
|                                                                                                                                                                  |   |                          |    |   |                    |   |   |   |
| Deferred      Income Taxes                                                                                                                                            |   |                          | 7,644   |   |                    |   | 8,220 |   |
| Long      Term Contingency Reserves                                                                                                                                   |   |                          | 2,677   |   |                    |   | 2,652 |   |
|                                                                                                                                                                  |   |                          |    |   |                    |   |   |   |
| Commitments      and Contingencies (Note 4)                                                                                                                           |   |                          |    |   |                    |   |   |   |
|                                                                                                                                                                  |   |                          |    |   |                    |   |   |   |
| Stockholders’      Equity:                                                                                                                                      |   |                          |    |   |                    |   |   |   |
| Common Stock, $0.03 1/3 par      value - authorized 400,000,000shares, issued 55,342,020      shares at March 30, 2008 and55,340,020 shares at December      31, 2007 |   |                          | 1,848   |   |                    |   | 1,848 |   |
| Additional paid-in      capital                                                                                                                                       |   |                          | 61,376  |   |                    |   | 60,926 |   |
| Less: 575,200 Common Stock      treasury shares, at cost, atMarch 30, 2008 and December 31,      2007                                                                 |   |                          | (5,662  | )      |                    |   | (5,662 | ) |
| Retained    earnings                                                                                                                                                  |   |                          | 45,988  |   |                    |   | 44,043 |   |
| Total Stockholders’      Equity                                                                                                                                 |   |                          | 103,550 |   |                    |   | 101,155 |   |
| Total      Liabilities and Stockholders’ Equity                                                                                                                 |   | $                             | 167,360 |   |                    | $      | 205,208 |   |

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 STATEMENTS OF OPERATIONS

|                                                                |   | For the Three Months Ended     |   |
|---------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                |   | March      30,  2008 |   |   | April      1, 2007 |   |
|                                                                |   | (Unaudited)                    |   |
| Sales                                                               |   | $                              | 95,900 |   |   | $ | 75,984 |   |
| Cost      of sales                                                  |   |                           | 81,927 |   |   |   | 61,681 |   |
| Gross Margin                                                        |   |                           | 13,973 |   |   |   | 14,303 |   |
|                                                                |   |                           |   |   |   |   |   |   |
| Operating      Expenses:                                            |   |                           |   |   |   |   |   |   |
| Selling, general and      administrative                            |   |                           | 10,851 |   |   |   | 10,384 |   |
| Research and      development                                       |   |                           | 1,929  |   |   |   | 1,739 |   |
| Restructuring      reversals                                        |   |                           | -      |   |   |   | (38 | ) |
| Goodwill impairment      charge                                     |   |                           | -      |   |   |   | 1,710 |   |
| License fee and patent      income                                  |   |                           | (1,278 | ) |   |   | (350 | ) |
| Bad debtcredit                                                      |   |                           | (236   | ) |   |   | (264 | ) |
| Total Operating      Expenses                                       |   |                           | 11,266 |   |   |   | 13,181 |   |
| Operating      income                                               |   |                           | 2,707  |   |   |   | 1,122 |   |
|                                                                |   |                           |   |   |   |   |   |   |
| Interest      income                                                |   |                           | 361    |   |   |   | 670 |   |
| Interest      expense and other income (expense), net               |   |                           | (132   | ) |   |   | (415 | ) |
| Income before income      taxes                                     |   |                           | 2,936  |   |   |   | 1,377 |   |
|                                                                |   |                           |   |   |   |   |   |   |
| Provision      for income taxes                                     |   |                           | (991   | ) |   |   | (228 | ) |
| Net      Income                                                     |   | $                              | 1,945  |   |   | $ | 1,149 |   |
|                                                                |   |                           |   |   |   |   |   |   |
| Net      Income Per Basic Share                                     |   | $                              | 0.04   |   |   | $ | 0.02 |   |
| Net      Income Per Diluted Common Share                            |   | $                              | 0.04   |   |   | $ | 0.02 |   |
|                                                                |   |                           |   |   |   |   |   |   |
| Weighted      Average Common Shares Outstanding                     |   |                           | 54,765 |   |   |   | 54,733 |   |
| Weighted      Average Common Shares Outstanding - Assuming Dilution |   |                           | 55,384 |   |   |   | 54,979 |   |

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CASH FLOWS

|                                                                    |   | For the Three Months Ended     |    |
|-------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                    |   | March      30,  2008 |    |   | April      1,  2007 |   |
|                                                                    |   | (Unaudited)                    |    |
| Cash      Flows from Operating Activities:                              |   |                           |    |   |   |   |
| Net income                                                              |   | $                              | 1,945   |   |   | $ | 1,149 |   |
| Adjustments to Reconcile Net      Income to Cash Flows from Operations: |   |                           |    |   |   |   |   |   |
| Depreciation and      amortization                                      |   |                           | 719     |   |   |   | 863 |   |
| Deferred income tax      benefit                                        |   |                           | (576    | ) |   |   | (598 | ) |
| Tax contingency      reserve                                            |   |                           | 25      |   |   |   | 4,414 |   |
| Stock-related compensation      expense                                 |   |                           | 445     |   |   |   | 297 |   |
| Goodwill impairment      charge                                         |   |                           | -       |   |   |   | 1,710 |   |
| Non-cash inventory      write-offs                                      |   |                           | 453     |   |   |   | 210 |   |
| Bad debt expense      (credit)                                          |   |                           | (236    | ) |   |   | (264 | ) |
| Other                                                                   |   |                           | (32     | ) |   |   | (63 | ) |
| Changes in Assets and      Liabilities:                                 |   |                           |    |   |   |   |   |   |
| Restricted cash                                                         |   |                           | (14     | ) |   |   | - |   |
| Trade    receivables                                                    |   |                           | 337     |   |   |   | 7,325 |   |
| Inventories                                                             |   |                           | 20,352  |   |   |   | 901 |   |
| Other current      assets                                               |   |                           | (421    | ) |   |   | 444 |   |
| Accountspayable                                                         |   |                           | (35,803 | ) |   |   | 225 |   |
| Other current      liabilities                                          |   |                           | (4,666  | ) |   |   | (7,005 | ) |
| Accrued      restructuring                                              |   |                           | -       |   |   |   | (1,501 | ) |
| Income taxes                                                            |   |                           | 777     |   |   |   | 504 |   |
| Net cash provided by (used in)      operating activities                |   |                           | (16,695 | ) |   |   | 8,611 |   |
|                                                                    |   |                           |    |   |   |   |   |   |
| Cash      Flows from Investing Activities:                              |   |                           |    |   |   |   |   |   |
| Purchases of property and      equipment                                |   |                           | (263    | ) |   |   | (117 | ) |
| Proceeds from sales of      assets                                      |   |                           | 2       |   |   |   | 49 |   |
| Purchases of temporary      investments                                 |   |                           | (4,984  | ) |   |   | (2,054 | ) |
| Sales of temporary      investments                                     |   |                           | 8,075   |   |   |   | 3,704 |   |
| Net change in other assets and      other liabilities                   |   |                           | -       |   |   |   | 44 |   |
| Net cash provided by investing      activities                          |   |                           | 2,830   |   |   |   | 1,626 |   |
|                                                                    |   |                           |    |   |   |   |   |   |
| Cash      Flows from Financing Activities:                              |   |                           |    |   |   |   |   |   |
| Proceeds from sales of Common      Stock                                |   |                           | 5       |   |   |   | 2 |   |
| Net cash provided by financing      activities                          |   |                           | 5       |   |   |   | 2 |   |
| Net      Increase (Decrease) in Total Cash and Cash Equivalents         |   |                           | (13,860 | ) |   |   | 10,239 |   |
| Total      Cash and Cash Equivalents at Beginning of Period             |   |                           | 53,559  |   |   |   | 56,617 |   |
| Total      Cash and Cash Equivalents at End of Period                   |   | $                              | 39,699  |   |   | $ | 66,856 |   |
|                                                                    |   |                           |    |   |   |   |   |   |
| Non-Cash      Investing and Financing Activities:                       |   |                           |    |   |   |   |   |   |
| Adjustment of CSCI, Inc.      acquisition                               |   | $                              | -       |   |   | $ | 210 |   |
|                                                                    |   |                           |    |   |   |   |   |   |

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NOTES TO CONDENSED

|                |   | Mar.      30,       |   |   | Dec.      31, |   |
|---------------------|--------|---------------------|--------|--------|---------------|--------|
|                |   | 2008                |   |   | 2007          |   |
|                |   | (In      thousands) |   |
|                |   |                |   |   |          |   |
| Raw      materials  |   | $                   | 19,003 |   |          | $      | 29,202 |   |
| Finished      goods |   |                | 40,075 |   |          |   | 50,681 |   |
|                |   | $                   | 59,078 |   |          | $      | 79,883 |   |

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|                             |   | Net      Income (Numerator)                |    |   | Shares(Denominator) |   |      | Per      Share Amount |   |
|----------------------------------|--------|--------------------------------------------|---------|--------|---------------------|--------|-----------|-----------------------|--------|
|                             |   | (In      thousands, except per share data) |    |
|                             |   |                                       |    |   |                |   |      |                  |   |
| For      the Three Months Ended: |   |                                       |    |   |                |   |      |                  |   |
| March      30, 2008:             |   |                                       |    |   |                |   |      |                  |   |
| Basic EPS                        |   | $                                          | 1,945   |   |                |   | 54,765    |                  |   | $ | 0.04 |   |
| Effect of    options             |   |                                       |  - |   |                |   |  619 |                  |   |   |  - |   |
| Diluted EPS                      |   | $                                          | 1,945   |   |                |   | 55,384    |                  |   | $ | 0.04 |   |
|                             |   |                                       |    |   |                |   |      |                  |   |   |   |   |
| April 1,      2007:              |   |                                       |    |   |                |   |      |                  |   |   |   |   |
| Basic EPS                        |   | $                                          | 1,149   |   |                |   | 54,733    |                  |   | $ | 0.02 |   |
| Effect of    options             |   |                                       |  - |   |                |   |  246 |                  |   |   |  - |   |
| Diluted EPS                      |   | $                                          | 1,149   |   |                |   | 54,979    |                  |   | $ | 0.02 |   |
|                             |   |                                       |    |   |                |   |      |                  |   |   |   |   |

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|                          |   | For the Three Months      Ended  |    |
|-------------------------------|--------|---------------------------------------|---------|
|                          |   | March      30,                        |    |   | April      1, |   |
|                          |   | 2008                                  |    |   | 2007 |   |
|                          |   |                                  |    |   |   |   |
| Out      of the money options |   |                                  | 866,312 |   |   |   | 713,092 |   |

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|                                                                                                                                                                                           |  For the Three Months      Ended                                                          |                                                              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                Assumption                | March      30,    2008                                                | April      1,    2007     |   |
|                                                                                                                                                                                           |                (In      thousands) |
|                                                                                                                                                                                           |                                                                                                          |                                                              |   |
| Average      expected term (in years)                                                                                                                                                          | 5.3                                                                                                           | 3.9                                                               |   |
| Expected      stock price volatility                                                                                                                                                           | 42%                                                                                                           | 39%                                                               |   |
| Risk-free      interest rate (range)                                                                                                                                                           | 2.9      – 4.1%                                                                                         | 4.5      – 4.9%                                             |   |
| Expected      dividends                                                                                                                                                                        | Zero                                                                                                          | Zero                                                              |   |

|                                |   | For the Three Months Ended |   |
|-------------------------------------|--------|----------------------------|--------|
|                                |   | March      30 ,            |   |   | April      1, |   |
|                                |   | 2008                       |   |   | 2007 |   |
|                                |   | (In      thousands)        |   |
|                                |   |                       |   |   |   |   |
| Balance      at beginning of period |   | $                          | 6,202  |   |   | $ | 4,576 |   |
| Accruals/additions                  |   |                       | 1,987  |   |   |   | 1,996 |   |
| Claims                              |   |                       | (2,330 | ) |   |   | (1,473 | ) |
| Balance      at end of period       |   | $                          | 5,859  |   |   | $ | 5,099 |   |

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| ·   | Level      1 – Quoted prices in active markets for identical assets and      liabilities. |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | Level      2 – Observable inputs other than quoted prices included in Level 1, such      as quoted priced for similar assets and liabilities in active markets;      quoted prices for identical or similar assets and liabilities in markets      that are not active; or other inputs that are observable or can be      corroborated by observable marketdata. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      3 – Unobservable inputs that are supported by little or no market activity      and that are significant to the fair value of the assets or      liabilities.  This includes certain pricing models, discounted      cash flow methodologies and similar techniques that use significant      unobservable inputs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   |  March 30, 2008 |   |
|----------------------------|--------|----------------------|--------|
|                       |   | Level 1              |   |   | Level 2 |   |   | Level 3 |   |   | Fair      Value Measurements |   |
|                       |   | (In      thousands)  |   |
|                       |   |                 |   |   |   |   |   |   |   |   |   |   |
| Assets                     |   |                 |   |   |   |   |   |   |   |   |   |   |
| Temporary      investments |   | $                    | 7,909  |   |   | $ | - |   |   | $ | - |   |   | $ | 7,909 |   |
| Total Assets               |   | $                    | 7,909  |   |   | $ | - |   |   | $ | - |   |   | $ | 7,909 |   |
| Liabilities                |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward    contracts       |   | $                    | 1,895  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,895 |   |
| Total    Liabilities       |   | $                    | 1,895  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,895 |   |
|                       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|               Business      Categories               |                     Reportable      Segments                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                             |                                                                                                                                                                                                                                                               |
| Consumer      Products                                                                                                                                                                           | 1.  Consumer      Storage Solutions                                                                                                                                                                                                                      |
|                                                                                                                                                                                             | 2.  Zip®      Products                                                                                                                                                                                                                              |
|                                                                                                                                                                                             |                                                                                                                                                                                                                                                               |
| Business      Products                                                                                                                                                                           | 3.  REV®      Products                                                                                                                                                                                                                              |
|                                                                                                                                                                                             | 4.  Network      Storage Systems                                                                                                                                                                                                                         |
|                                                                                                                                                                                             | 5.  Services                                                                                                                                                                                                                                             |
|                                                                                                                                                                                             |                                                                                                                                                                                                                                                               |
| Other      Products                                                                                                                                                                              | 6.  Other      Products                                                                                                                                                                                                                                  |

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|                                  |   | For the Quarter Ended                 |   |
|---------------------------------------|--------|---------------------------------------|--------|
|                                  |   | March      30,  2008   |   |   | April      1,  2007   |   |
|                                  |   | (In      thousands)                   |   |
| Sales:                                |   |                                  |   |   |   |   |
| Consumer      Products:               |   |                                  |   |   |   |   |
| Consumer Storage      Solutions       |   | $                                     | 74,989 |   |   | $ | 52,489 |   |
| Zip Products                          |   |                                  | 2,803  |   |   |   | 5,518 |   |
| Total Consumer      Products          |   |                                  | 77,792 |   |   |   | 58,007 |   |
| Business      Products:               |   |                                  |   |   |   |   |   |   |
| REV Products                          |   |                                  | 6,835  |   |   |   | 11,204 |   |
| Network Storage      Systems          |   |                                  | 9,078  |   |   |   | 4,738 |   |
| Services                              |   |                                  | 1,984  |   |   |   | 1,892 |   |
| Total Business      Products          |   |                                  | 17,897 |   |   |   | 17,834 |   |
| Other      Products                   |   |                                  | 211    |   |   |   | 143 |   |
| Total Sales                           |   | $                                     | 95,900 |   |   | $ | 75,984 |   |
|                                  |   |                                  |   |   |   |   |   |   |
| Product      Operating Income (Loss): |   |                                  |   |   |   |   |   |   |
| Consumer      Products:               |   |                                  |   |   |   |   |   |   |
| Consumer Storage      Solutions       |   | $                                     | (999   | ) |   | $ | 354 |   |
| Zip Products                          |   |                                  | 1,543  |   |   |   | 355 |   |
| Total Consumer      Products          |   |                                  | 544    |   |   |   | 709 |   |
| Business      Products:               |   |                                  |   |   |   |   |   |   |
| REV Products                          |   |                                  | 272    |   |   |   | 304 |   |
| Network Storage      Systems          |   |                                  | 700    |   |   |   | 409 |   |
| Services                              |   |                                  | (99    | ) |   |   | (520 | ) |
| Total Business      Products          |   |                                  | 873    |   |   |   | 193 |   |
| Other      Products                   |   |                                  | 1,290  |   |   |   | 182 |   |
| Restructuring      reversals          |   |                                  | -      |   |   |   | 38 |   |
| Total Operating      Income           |   | $                                     | 2,707  |   |   | $ | 1,122 |   |

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|                                       |   |   |         |   | Weighted |           |
|--------------------------------------------|--------|--------|--------------|--------|----------|----------------|
|                                       |   | Shares |         |   | Average  |           |
|                                       |   |   | (000’s | )      |     | Exercise Price |   |
|                                       |   |   |         |   |     |           |   |
| Outstanding      at beginning of year      |   |   | 3,059        |   |     | $              | 3.89 |   |
| Granted      (1)                           |   |   | 1,470        |   |     |           | 2.81 |   |
| Exercised                                  |   |   | (2           | )      |     |           | 2.66 |   |
| Forfeited      / Cancelled / Expired       |   |   | (16          | )      |     |           | 8.38 |   |
| Outstanding      at March 30, 2008         |   |   | 4,511        |   |     |           | 3.52 |   |
| Options      exercisable at March 30, 2008 |   |   | 1,632        |   |     | $              | 4.48 |   |

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|                          |   | Mar.      30, 2008 |   |   | Dec.      31, 2007 |   |
|-------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                          |   | (In      thousands)     |   |
| Other      Intangible Assets: |   |                    |   |   |                    |   |
| Gross value                   |   | $                       | 1,127  |   |                    | $      | 1,127 |   |
| Accumulated      amortization |   |                    | (337   | )      |                    |   | (287 | ) |
| Net intangible      assets    |   | $                       | 790    |   |                    | $      | 840 |   |

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| ITEM      2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND RESULTS OF OPERATIONS: |
|--------------|---------------------------------------------------------------------------------------------------|

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|                            |   |  For the Three Months      Ended |   |
|---------------------------------|--------|---------------------------------------|--------|
|                            |   | March 30,                        |   |   | April      1, |   |   |   |   |   |   |   |
|                            |   | 2008                                  |   |   | 2007 |   |   | $ Change |   |   | % Change |   |
|                            |   | (In      thousands, except %)         |   |
| Sales:                          |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Consumer      Products:         |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Consumer Storage      Solutions |   | $                                     | 74,989 |   |   | $ | 52,489 |   |   | $ | 22,500 |   |   |   | 43 | % |
| Zip Products                    |   |                                  | 2,803  |   |   |   | 5,518 |   |   |   | (2,715 | ) |   |   | (49 | ) |
| Total Consumer      Products    |   |                                  | 77,792 |   |   |   | 58,007 |   |   |   | 19,785 |   |   |   | 34 |   |
| Business      Products:         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REV Products                    |   |                                  | 6,835  |   |   |   | 11,204 |   |   |   | (4,369 | ) |   |   | (39 | ) |
| Network Storage      Systems    |   |                                  | 9,078  |   |   |   | 4,738 |   |   |   | 4,340 |   |   |   | 92 |   |
| Services                        |   |                                  | 1,984  |   |   |   | 1,892 |   |   |   | 92 |   |   |   | 5 |   |
| Total Business      Products    |   |                                  | 17,897 |   |   |   | 17,834 |   |   |   | 63 |   |   |   | 1 |   |
| Other      Products             |   |                                  | 211    |   |   |   | 143 |   |   |   | 68 |   |   |   | 48 |   |
| Total Sales                     |   | $                                     | 95,900 |   |   | $ | 75,984 |   |   | $ | 19,916 |   |   |   | 26 | % |

|                                   |   |  For the Three Months      Ended |   |
|----------------------------------------|--------|---------------------------------------|--------|
|                                   |   | March      30,                        |   |   | April      1, |   |   |   |   |   |   |   |
|                                   |   | 2008                                  |   |   | 2007 |   |   | $ Change |   |   | % Change |   |
|                                   |   | (In      thousands, except %)         |   |
| Sales      Dollars:                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Europe                                 |   | $                                     | 67,987 |   |   | $ | 51,413 |   |   | $ | 16,574 |   |   |   | 32 | % |
| Americas      (includes Latin America) |   |                                  | 24,999 |   |   |   | 21,999 |   |   |   | 3,000 |   |   |   | 14 |   |
| Asia      Pacific                      |   |                                  | 2,914  |   |   |   | 2,572 |   |   |   | 342 |   |   |   | 13 |   |
| Total                                  |   | $                                     | 95,900 |   |   | $ | 75,984 |   |   | $ | 19,916 |   |   |   | 26 | % |
|                                   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percent      of Total Sales:           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Europe                                 |   |                                  | 71     | % |   |   | 68 | % |   |   |   |   |   |   |   |   |
| Americas      (includes Latin America) |   |                                  | 26     |   |   |   | 29 |   |   |   |   |   |   |   |   |   |
| Asia      Pacific                      |   |                                  | 3      |   |   |   | 3 |   |   |   |   |   |   |   |   |   |
| Total                                  |   |                                  | 100    | % |   |   | 100 | % |   |   |   |   |   |   |   |   |

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|                              |   | For the Three Months Ended    |   |
|-----------------------------------|--------|-------------------------------|--------|
|                              |   | March      30,                |   |   | April      1, |   |   |   |   |   |   |   |
|                              |   | 2008                          |   |   | 2007 |   |   | $ Change |   |   | % Change |   |
|                              |   | (In      thousands, except %) |   |
|                              |   |                          |   |   |   |   |   |   |   |   |   |   |
| Total      Gross Margin (dollars) |   | $                             | 13,973 |   |   | $ | 14,303 |   |   | $ | (330 | ) |   |   | (2 | )% |
| Total      Gross Margin (%)       |   |                          | 14.6   | % |   |   | 18.8 | % |   |   |   |   |   |   |   |   |

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|                                  |   |  For the Three Months      Ended |   |
|---------------------------------------|--------|---------------------------------------|--------|
|                                  |   | March      30,                        |   |   | April      1, |   |   |   |   |   |   |   |
|                                  |   | 2008                                  |   |   | 2007 |   |   | $ Change |   |   | % Change |   |
|                                  |   | (In      thousands, except %)         |   |
| Product      Operating Income (Loss): |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Consumer      Products:               |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Consumer Storage      Solutions       |   | $                                     | (999   | ) |   | $ | 354 |   |   | $ | (1,353 | ) |   |   | (382 | )% |
| Zip Products                          |   |                                  | 1,543  |   |   |   | 355 |   |   |   | 1,188 |   |   |   | 335 |   |
| Total Consumer      Products          |   |                                  | 544    |   |   |   | 709 |   |   |   | (165 | ) |   |   | (23 | ) |
| Business      Products:               |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REV Products                          |   |                                  | 272    |   |   |   | 304 |   |   |   | (32 | ) |   |   | (11 | ) |
| Network Storage      Systems          |   |                                  | 700    |   |   |   | 409 |   |   |   | 291 |   |   |   | 71 |   |
| Services                              |   |                                  | (99    | ) |   |   | (520 | ) |   |   | 421 |   |   |   | 81 |   |
| Total Business      Products          |   |                                  | 873    |   |   |   | 193 |   |   |   | 680 |   |   |   | 352 |   |
| Other      Products                   |   |                                  | 1,290  |   |   |   | 182 |   |   |   | 1,108 |   |   |   | 609 |   |
| Restructuring      reversals          |   |                                  | -      |   |   |   | 38 |   |   |   | (38 | ) |   |   | (100 | ) |
| Total Operating Income      (Loss)    |   | $                                     | 2,707  |   |   | $ | 1,122 |   |   | $ | 1,585 |   |   |   | 141 | % |
|                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                     |   |  For the Three Months      Ended |   |
|------------------------------------------|--------|---------------------------------------|--------|
|                                     |   | Mar.      30,                         |   |   | Apr.      1, |   |   |   |   |   |   |   |
|                                     |   | 2008                                  |   |   | 2007 |   |   | $ Change |   |   | % Change |   |
|                                     |   | (In      thousands, except %)         |   |
| Operating      Expenses:                 |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Selling, general and      administrative |   | $                                     | 10,851 |   |   | $ | 10,384 |   |   | $ | 467 |   |   |   | 5 | % |
| Research and      development            |   |                                  | 1,929  |   |   |   | 1,739 |   |   |   | 190 |   |   |   | 11 |   |
| Restructuring      reversals             |   |                                  | -      |   |   |   | (38 | ) |   |   | 38 |   |   |   | 100 |   |
| Goodwill impairment      charge          |   |                                  | -      |   |   |   | 1,710 |   |   |   | (1,710 | ) |   |   | (100 | ) |
| License and patent fee      income       |   |                                  | (1,278 | ) |   |   | (350 | ) |   |   | (928 | ) |   |   | (265 | ) |
| Bad debtcredit                           |   |                                  | (236   | ) |   |   | (264 | ) |   |   | 28 |   |   |   | 11 |   |
| Total Operating      Expenses            |   | $                                     | 11,266 |   |   | $ | 13,181 |   |   | $ | (1,915 | ) |   |   | (15 | )% |

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|                                                                                      |   | Mar.      30,                 |    |   | Dec.      31, |   |   |     |   |   |     |   |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|---------------|--------|--------|----------|--------|--------|----------|--------|
|                                                                                      |   | 2008                          |    |   | 2007          |   |   | $ Change |   |   | % Change |   |
|                                                                                      |   | (In      thousands, except %) |    |
|                                                                                      |   |                          |    |   |          |   |   |     |   |   |     |   |
| Total      cash, cash equivalents and temporaryinvestments for the U.S.      entity       |   | $                             | 4,345   |   |          | $      | 7,285  |     |   | $      | (2,940   | )      |   |   | (40 | )% |
| Total      cash, cash equivalents and temporaryinvestments for non-U.S. entities      (1) |   |                          | 43,370  |   |          |   | 56,328 |     |   |   | (12,958  | )      |   |   | (23 | ) |
| Total      consolidated cash, cash equivalentsand temporary    investments                |   | $                             | 47,715  |   |          | $      | 63,613 |     |   | $      | (15,898  | )      |   |   | (25 | ) |
|                                                                                      |   |                          |    |   |          |   |   |     |   |   |     |   |   |   |   |   |
| Working      capital                                                                      |   | $                             | 100,108 |   |          | $      | 96,493 |     |   | $      | 3,615    |   |   |   | 4 | % |

| (1)   | Of      the $43.4 million in total cash, cash equivalents and temporary      investments for non-U.S. entities, $0.1 million was restricted at March      30, 2008.  At December 31, 2007, $0.1 million of the non-U.S.      entity cash was restricted. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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QUANTITATIVE 

CONTROLS

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LEGAL 

RISK

| ·   | Our      ability to avoid business distraction and disruption while in the midst of      closing the acquisition of Iomega byEMC; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to improve and/or sustain satisfactory HDD gross      margins; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Our      ability to generate significant sales and profit margins from REV®      and NAS products; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to replace declining Zip®      revenues and profits with revenues and profits from other      products; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | Worldwide      market conditions and demand for digital storage products and other      products we continue to add as we moveforward; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      success in meeting targeted availability dates for new and enhanced      products; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Our      ability to develop and commercialize new intellectual property and to      protect existing intellectualproperty; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to maintain profitable relationships with our distributors,      retailers and other resellers; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to maintain an appropriate cost  structure; |
|--------------------|--------------------------------------------------------------|

| ·   | Our      ability to attract and retain competent, motivated    employees; |
|--------------------|---------------------------------------------------------------------------|

| ·   | Our      ability to comply with applicable legal requirements throughout the      world; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | Our      ability to utilize reliable outsource partners for certain critical      functions at prices that keep uscompetitive; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to successfully manage litigation, including enforcing our rights,      protecting our interests and defending claims made against    us. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Any      lack of market acceptance of our third generation of REV products, the REV      120GB products; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Failure      to maintain acceptable arrangements with product component suppliers,      particularly in light of lower than anticipated  volumes; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Manufacturing,      technical, supplier, or quality-related delays, issues or concerns,      including the loss of any key supplier or failure of any key supplier to      deliver high quality products ontime; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Intense      competition; |
|--------------------|---------------------------|

| ·   | The      inability of our OEM partner in the broadcast industry, Thomson      N.A.,  to  achieve significant volumes of its recently      launched products utilizing REV drives and  disks; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Potential      declines in demand for REV 35GB and REV 70GB products because of the      launch of REV 120GB products and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | Risks      that third parties may assert intellectual property claims against REV      products. |
|--------------------|--------------------------------------------------------------------------------------------------|

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UNREGISTERED

EXHIBITS:

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SIGNATURES

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|   | Vice      President of Finance and |
|--------|------------------------------------|

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EXHIBIT INDEX

| Exhibit      No. |  Description                                                                                                                                                                                                               |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                            |
| 10.26            | Lease      agreement with Boyer Iomega II, a Utah Limited Liability Company, by its      managing partner, The Boyer Company, L.C., (the “Landlord”), and Iomega      Corporation (the “Tenant”).  |
| 31.1             | Section      302 certification letter from Jonathan S. Huberman, Vice Chairman and      Chief Executive Officer.                                                                                                           |
| 31.2             | Section      302 certification letter from Preston Romm, Vice President of Finance and      Chief Financial Officer.                                                                                                       |
| 32.3             | Section      906 certification letter from Jonathan S. Huberman, Vice Chairman and      Chief Executive Officer.                                                                                                           |
| 32.4             | Section      906 certification letter from Preston Romm, Vice President of Finance and      Chief Financial Officer.                                                                                                       |