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 JUNE 30, 1996
                               
                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 June 30, 1996.

Common Stock, par value $.03 1/3                            126,257,126
   (Title of each class)                                (Number of shares)


<PAGE>

                              IOMEGA CORPORATION

                              TABLE OF CONTENTS


     
                                                            Page

PART I -  FINANCIAL INFORMATION
   Condensed consolidated balance sheets at
   June 30, 1996 and December 31, 1995 ..................... 2

   Condensed consolidated statements of operations
   for the three months ended June 30, 1996
   and July 2, 1995 ........................................ 4

   Condensed consolidated statements of operations
   for the six months ended June 30, 1996
   and July 2, 1995 ........................................ 5

   Condensed consolidated statements of cash flows
   for the six months ended June 30, 1996
   and July 2, 1995 ........................................ 6

   Notes to condensed consolidated financial statements .... 8

   Management's discussion and analysis of financial
   condition and results of operations ..................... 14

PART II -  OTHER INFORMATION ............................... 21

SIGNATURES ................................................. 22

EXHIBIT INDEX .............................................. 23


                               
This Quarterly Report on Form 10-Q contains forward-looking
statements, including information with respect to the Company's
plans and strategy for its business.  For this purpose, any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements.  Without
limiting the foregoing, the words "believes", "anticipates",
"plans", "expects" and similar expressions are intended to identify
forward-looking statements.  There are a number of important
factors that could cause actual events or the Company's actual
results to differ materially from those indicated by such
forwarding-looking statements.  These factors include, without
limitation, those set forth below under the caption "Factors
Affecting Future Operating Results" included under "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in Part I of this Quarterly Report on Form 10-Q and
those identified in the Company's other filings with the Securities
and Exchange Commission.

<PAGE>
                      IOMEGA CORPORATION
                               
             CONDENSED CONSOLIDATED BALANCE SHEETS
                               
                            ASSETS
                               
                          (Unaudited)

<TABLE>
                                            June 30,      December 31,
                                              1996             1995            
                                                 (In thousands)
<C>                                         <S>           <S>
CURRENT ASSETS:
Cash and cash equivalents                   $ 160,678     $     1,023
Trade receivables (net)                       180,094         105,955
Inventories                                   146,173          98,703
Deferred income taxes                          20,124           2,778
Other current assets                           17,968           3,673
                                            ---------     -----------
Total current assets                          525,037         212,132

PROPERTY AND EQUIPMENT, at cost               143,071         103,149
Less - accumulated depreciation 
   and amortization                           (57,888)        (49,779)
                                            ---------     -----------
Net property and equipment                     85,183          53,370

OTHER ASSETS                                    4,288             725
                                            ---------     -----------
                                            $ 614,508       $ 266,227
                                            =========     ===========
</TABLE>

       The accompanying notes to condensed consolidated
  financial statements are an integral part of these balance sheets.
                               
<PAGE>
                               
                         IOMEGA CORPORATION
                                 
                CONDENSED CONSOLIDATED BALANCE SHEETS
                               
                LIABILITIES AND STOCKHOLDERS' EQUITY
                               
                             (Unaudited)
                    
<TABLE>
           
                                     June 30,         December 31,
                                       1996              1995
                                          (In thousands)
<S>                                  <C>              <C>
CURRENT LIABILITIES:
Current portion of notes payable    $   30,989         $    47,640
Accounts payable                       159,341              94,782
Other accrued liabilities               72,201              51,164
Income taxes payable                    15,162               5,141
Current portion of capitalized 
   lease obligations                     2,721                 782
                                    ----------         -----------
Total current liabilities              280,414             199,509

CAPITALIZED LEASE OBLIGATIONS, 
   net of current portion                4,734               1,481

NOTES PAYABLE, net of 
   current portion                       2,006               2,551

CONVERTIBLE SUBORDINATED NOTES, 
   6.75%, due 2001                      45,735                   -

STOCKHOLDER'S EQUITY:
Preferred stock, $.01 par 
   value; authorized 4,750,000 shares        -                   -
Series C junior participating 
   preferred stock, authorized 
   250,000 shares, none issued               -                   -
Common stock, $.03 1/3 par value; 
   authorized 150,000,000 shares, 
   126,257,126 and 117,638,670
   shares outstanding at June 30, 
   1996 and December 31, 1995, 
   respectively                         4,206               3,921
Additional paid-in capital            244,795              49,512
Deferred compensation                    (838)                  -
Retained earnings                      33,456               9,253
                                    ---------           ---------
Total stockholders' equity            281,619              62,686
                                    ---------           ---------
                                   $  614,508         $   266,227
                                   ==========           =========
</TABLE>


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

                         IOMEGA CORPORATION
                               
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               
                             (Unaudited)

<TABLE>
                                         For the Three Months Ended
                                           June 30,       July 2,
                                             1996          1995
                                   (In thousands, except per share data)
<S>                                      <C>            <C>
SALES                                    $   283,638     $    52,594

COST OF SALES                                207,443          40,907
                                         -----------     -----------
Gross Margin                                  76,195          11,687

OPERATING EXPENSES:
Selling, general and administrative           39,126          10,162
Research and development                      11,542           3,976
                                         -----------     -----------
Total operating expenses                      50,668          14,138
                                         -----------     -----------
OPERATING INCOME (LOSS)                       25,527          (2,451)

Interest expense                              (2,373)             (4)
Other income (expense)                           134             (51)
                                         -----------     -----------
INCOME (LOSS) BEFORE INCOME TAXES             23,288          (2,506)

Benefit (provision) for income taxes          (9,206)            559
                                         -----------     -----------
NET INCOME (LOSS)                        $    14,082     $    (1,947)
                                         ===========     ===========
NET INCOME (LOSS) PER COMMON SHARE       $      0.11     $     (0.02)
                                         ===========     ===========
WEIGHTED AVERAGE COMMON SHARES 
   OUTSTANDING Includes effects of 
   stock splits (see Note 2)                 132,405         114,036
                                         ===========     ===========
</TABLE>

       The accompanying notes to condensed consolidated
financial statements are an integral part of these statements.
                               
<PAGE>
                               
                          IOMEGA CORPORATION
                               
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               
                             (Unaudited)
<TABLE>
                                          For the Six Months Ended
                                            June 30,       July 2,
                                              1996           1995
                                     (In thousands, except per share data)
<S>                                        <C>            <C>
SALES                                      $   505,626    $    92,706

COST OF SALES                                  369,531         69,302
                                           -----------    -----------
Gross Margin                                   136,095         23,404

OPERATING EXPENSES:
Selling, general and administrative             72,282         19,511
Research and development                        18,533          8,102
                                           -----------    -----------
Total operating expenses                        90,815         27,613
                                           -----------    -----------
OPERATING INCOME (LOSS)                         45,280         (4,209)

Interest expense                                (4,630)           (10)
Foreign currency loss                              (64)        (1,233)
Other income (expense)                            (706)         1,168
                                          ------------    -----------
INCOME (LOSS) BEFORE INCOME TAXES               39,880         (4,284)

Benefit (provision) for income taxes           (15,677)           839
                                          ------------    -----------
NET INCOME (LOSS)                         $     24,203    $    (3,445)
                                          ============    ===========
NET INCOME (LOSS) PER COMMON SHARE        $       0.19    $     (0.03)
                                          ============    ===========
WEIGHTED AVERAGE COMMON SHARES 
   OUTSTANDING Includes effects of 
   stock splits (see Note 2)                  130,419         113,316
                                          ===========     ===========
</TABLE>

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

<PAGE>
                           IOMEGA CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (Unaudited)
<TABLE>
                              
                                          For the Six Months Ended
                                            June 30,      July 2,
                                              1996          1995
                                                (In thousands)
<S>                                         <C>           <C>
INCREASE (DECREASE) IN CASH AND 
   CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income (Loss)                        $    24,203   $   (3,445)
   Non-cash Revenue and Expense Adjustments:
   Depreciation and amortization expense          9,674        3,804
   Deferred income tax benefit                  (18,111)        (692)
   Other                                            443          490
   Changes in Assets and Liabilities:
     Trade receivables (net)                    (74,139)     (10,444)
     Inventories                                (47,470)     (11,988)
     Income taxes                                10,021          768
     Other current assets                       (14,295)        (858)
     Accounts payable                            64,559       22,078
     Accrued liabilities                         21,037          540
       Net cash provided from (used in)    ------------    ---------     
        operating activities                    (24,078)         253

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment           (35,505)     (13,105)
   Purchase of temporary investments                  -       (2,090)
   Sale of temporary investments                      -        5,022
   Net decrease (increase) in other assets           71           (2)
                                           ------------    ---------           
     Net cash used in investing activities      (35,434)     (10,175)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from sales of Common Stock             1,458        1,497
  Proceeds from issuance of notes payable       701,537            -
  Payments on notes payable and 
    capitalized lease obligations              (719,775)           -
  Tax benefit from early dispositions 
    of employee stock                             1,607          210
  Conversion of Series A Preferred Stock              -          (30)
  Net proceeds from public offering of 
     Common Stock                               191,209            -
  Net proceeds from issuance of 
    convertible notes                            43,131            -
  Proceeds from notes receivable 
    from shareholders                                 -          880
                                           ------------    ---------
      Net cash provided from 
        financing activities                    219,167        2,557
                                           ------------    ---------
NET INCREASE (DECREASE) IN CASH 
  AND CASH EQUIVALENTS                          159,655       (7,365)
CASH AND CASH EQUIVALENTS AT BEGINNING 
  OF PERIOD                                       1,023       16,861
                                            -----------    ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD   $  160,678    $   9,496
                                            ===========    =========


SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES:
  Sale of Common Stock for a note            $        -    $    283
                                             ==========    ========
  Property and equipment financed 
    under capitalized lease obligations      $    6,234    $      -
                                             ==========    ========
  Conversion of Series A Preferred 
    Stock to Common Stock                    $        -    $  1,205
                                             ==========    ========
  Conversion of Subordinated Notes 
    to Common Stock                          $      265    $      -
                                             ==========    ========
</TABLE>

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

<PAGE>

                          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 June 30,
1996 and December 31, 1995, the results of operations for the
three- and six-month periods ended June 30, 1996 and July 2,
1995, and cash flows for the six-month periods ended June 30,
1996 and July 2, 1995.

The results of operations for the three- and six-month periods
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 the
Company's latest Annual Report on Form 10-K.

Pervasiveness of Estimates  --  The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from these estimates.

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 customers with right of return
privileges whose inventory is in excess of estimated normal
customers' inventory requirements.  The gross margin
associated with the deferral of sales in excess of normal
customers' inventory requirements totaled $11,548,000 and
$3,207,000 at June 30, 1996 and December 31, 1995,
respectively, and is included in other accrued liabilities in
the accompanying condensed consolidated balance sheets.

In addition, the Company records reserves at the time of
shipment for estimated volume rebates and price protection
credits to be issued to customers.  These reserves totaled
$7,281,000 and $1,633,000 at June 30, 1996 and December 31,
1995, respectively, and are netted against accounts receivable
in the accompanying condensed consolidated balance sheets.

Price Protection  --  The Company has agreements with certain
of its customers which, in the event of a price decrease,
allow those customers (subject to certain limitations) credit
equal to the difference between the price originally paid and
the reduced price on units in the customers' inventories at
the date of a price decrease.  When a price decrease is
anticipated, the Company establishes reserves for amounts
estimated to be reimbursed to the qualifying customers.

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.

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

                                    June 30,      December 31,
                                      1996          1995
                                       (In thousands)

  Raw materials                     $  93,529      $  89,030
  Work-in-process                      11,167          5,680
  Finished goods                       41,477          3,993
                                    ---------      ---------
                                    $ 146,173      $  98,703
                                    =========      =========

Reclassifications  --  Certain reclassifications were made to
the prior periods' condensed consolidated financial statements
to conform with the current 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 period.  Common Stock equivalent shares
consist primarily of stock options 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 periods
presented to reflect the impact of the stock splits described
in Note 2.


(2)    STOCK SPLITS

In December 1995, the Board of Directors declared a 3-for-1
Common Stock split, which was effected in the form of a 200%
Common Stock dividend, paid on January 31, 1996 to
stockholders of record at the close of business on January 15,
1996.  This stock split has been retroactively reflected in
the accompanying condensed consolidated financial statements.

On April 23, 1996, the Company's Board of Directors declared
a 2-for-1 Common Stock split, which was effected in the form
of a 100% Common Stock dividend, paid on May 20, 1996 to
stockholders of record at the close of business on May 6,
1996.  This stock split has been retroactively reflected in
the accompanying condensed consolidated financial statements.

In connection with each stock split, proportional adjustments
were made to outstanding stock options and other outstanding
obligations of the Company to issue shares of Common Stock.

(3)    INCOME TAXES

Income tax expense for the six months ended June 30, 1996 has
been provided at an effective rate of 39% compared to an
effective rate of 27% for the year ended December 31, 1995. 
This tax rate is based on the Company's projected domestic and
foreign pre-tax income for 1996.  The increase in the
effective tax rate is due to the Company's expected full
utilization of available tax credits and foreign net operating
loss carryforwards during 1996, and because pre-tax income of
certain foreign operations is subject to foreign income taxes
at a rate in excess of the U.S. statutory rate.  The higher
tax on foreign operations is expected to offset the benefits
of the tax credits and net operating loss carryforwards which
the Company expects to utilize during 1996.

Cash paid for income taxes was $21,982,000 for the first six
months of 1996 and $41,000 for the corresponding period in
1995.


(4)    DEBT

Line of Credit  --  On July 5, 1995, the Company entered into
a loan agreement with the Commercial Finance Division of Wells
Fargo Bank, N.A. ("Wells Fargo Bank").

Effective May 13, 1996, the Company renewed and amended its
loan agreement with Wells Fargo Bank.  The amended agreement
permits revolving loans, term loans and letters of credit up
to an aggregate outstanding principal amount equal to the
lesser of $100 million or 80% of eligible accounts receivable. 
Amounts outstanding are collateralized by accounts receivable,
inventory, equipment, general intangibles and certain other
assets.  The new revolving line bears interest at the bank's
prime rate plus .5% and the term loans bear interest at the
bank's prime rate plus .75%.  Total availability under this
agreement was $56.4 million at June 30, 1996, of which no
amount had been drawn.  This agreement expires June 30, 1997. 
Under this agreement, the Company may also secure financing of
equipment purchases from third parties up to a maximum of $75
million, less term loans outstanding to Wells Fargo Bank. 
Among other restrictions, covenants within the agreement
require the Company to maintain minimum levels of working
capital and net worth.

Capital Leases  --  From August 1995 to May 1996, the Company
entered into various agreements to provide capital lease
financing for the purchase of certain manufacturing equipment. 
The total amount of capital lease commitments at June 30, 1996
is $7.5 million.

Other Term Notes  --  During 1995, the Company entered into
term notes with financial institutions.  The proceeds of the
notes were used to purchase manufacturing equipment.  The term
notes have 36-month terms which mature at various dates from
November 1988 to January 1999.  Interest rates are fixed and
range from 8.89% to 9.11%.  At June 30, 1996, the Company had
$3.1 million outstanding on these notes.  The notes are
secured by the equipment purchased.  The term notes require
the Company to maintain minimum levels of working capital, net
worth, and quarterly operating income.

Financing of European Accounts Receivable  --  In November
1995, a foreign subsidiary of the Company entered into an
agreement with a German commercial bank for up to DM 50
million (approximately $35 million) which involves the sale of
a portion of the foreign subsidiary's accounts receivable to
the bank.  The agreement expires in November 1996.  Such sales
of receivables are limited to 90% of eligible accounts
receivable subject to certain credit limits.  The Company has
retained the bad debt risk on the receivables up to DM 1
million per customer.  At June 30, 1996, borrowings against
the agreement totaled $29.9 million.

Cash paid for interest was $4,601,000 during the first six
months of 1996, including interest on capital leases.  There
was no debt outstanding during the corresponding period of
1995.  Included in interest expense for the six months ended
June 30, 1996 was $517,000 of amortization of deferred charges
associated with obtaining the debt.

(5)    CONVERTIBLE SUBORDINATED NOTES

In March 1996, the Company issued $46,000,000 in convertible
subordinated notes.  The net proceeds from the issuance of the
notes totaled $43.1 million and were used to pay down other
debts and for operating requirements.  The notes bear interest
at 6.75% per year and interest payments are payable semi-annually 
on March 15 and September 15 in each year commencing
on September 15, 1996.  The notes mature on March 15, 2001. 
The notes are unsecured and subordinated to all existing and
future senior indebtedness of the Company and are effectively
subordinated to all existing and future indebtedness and other
liabilities of the Company's subsidiaries.

The notes are convertible into Common Stock of the Company at
the option of the holder at any time and at or before
maturity, unless previously redeemed or repurchased, at a
conversion price of $9.875 per share (equivalent to a
conversion rate of approximately 101.27 shares per $1,000
principal amount of notes), subject to adjustment in certain
events.  At June 30, 1996, holders have converted $265,000 of
convertible subordinated notes into 26,832 shares of Common
Stock.

The notes are redeemable at any time on or after March 15,
1999, in whole or in part, at the option of the Company, at
declining redemption prices, 102.7% for 1999 and 101.35% for
2000, together with accrued interest, if any, to the
redemption date.

In the event any repurchase event, as defined in the indenture
agreement, occurs, each holder of notes may require the
Company to repurchase all or any part of such holder's notes
at 100% of the principal amount thereof plus accrued interest
to the repurchase date.

(6)    OTHER MATTERS

Significant Customers  --  During the fiscal quarter and six
months ended June 30, 1996, sales to a single customer
accounted for 17% and 14%, respectively, of consolidated
sales.  During the fiscal quarter and six months ended July 2,
1995, sales to a single customer accounted for 14% and 10%,
respectively, of consolidated sales.  No other single customer
accounted for more than 10% of the Company's sales for these
periods.

Forward Exchange Contracts  --  The Company has commitments to
sell and purchase foreign currencies relating to forward
exchange contracts in order to hedge against future currency
fluctuations.  In addition, the Company purchases components
denominated in Yen and has purchased forward contracts to buy
Yen.

The outstanding forward exchange sales and (purchase)
contracts at June 30, 1996 are as follows.  The contracts
mature in September of 1996.

                                             Contracted
Currency                       Amount        Forward Rate
-----------------          ---------------  --------------
German Mark                  (10,200,000)   1.5181 - 1.51836
Great Britain Pound            3,600,000        1.54079
French Franc                  19,500,000         5.139
Spanish Peseta               512,000,000        128.87
Italian Lira               7,400,000,000        1,546.0
Japanese Yen              (2,950,000,000)       108.107


Gains and losses on foreign currency contracts intended to be
used to hedge operating requirements are reported currently in
income.  Gains and losses on foreign currency contracts
intended to meet firm commitments are deferred and recognized
as part  of the cost of the underlying transaction being
hedged.  At June 30, 1996 and December 31, 1995, all of the
Company's foreign currency contracts are being used to hedge
operating requirements.  The Company's theoretical risk in
these transactions is the cost of replacing, at current market
rates, these contracts in the event of default by the
counterparty.

(7)  SUBSEQUENT EVENT

In July 1996, the Company announced that it has entered into
an agreement to purchase a hard-drive manufacturing facility
in Penang, Malaysia from Quantum Corporation.  The purchase
price of approximately $28 million is expected to be financed
over a three-year period.

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


RESULTS OF OPERATIONS

The Company reported sales of $283.6 million and net income of
$14.1 million, or $0.11 per share, in the second quarter of 1996. 
This compares to sales of $52.6 million and a net loss of $1.9
million, or $0.02 per share, in the second quarter of 1995.  For
the six month period ended June 30, 1996, sales were $505.6 million
and net income was $24.2 million, or $0.19 per share, compared to
sales of $92.7 million and a net loss of $3.4 million, or $0.03 per
share, in the same period of 1995.
 
SALES

Sales for the three- and six-month periods ended June 30, 1996
increased by $231.0 million, or 439%, and $412.9 million, or 445%,
respectively, when compared to the corresponding periods of 1995. 
The primary reason for the increases was sales of Zip and Jaz
products, which began shipping in March 1995 and December 1995,
respectively.  Increased sales of Ditto products also contributed
to the increased sales.  These sales were partially offset by
declines in sales of Bernoulli products.

In the second quarter of 1996, sales of Zip and Jaz products
accounted for $246.2 million, or 87%, of total sales, sales of
Ditto products accounted for $28.4 million, or 10%, of the total
sales, and sales of Bernoulli products accounted for $9.0 million,
or 3%, of total sales.  Compared to the second quarter of 1995, Zip
and Jaz sales increased by $227.0 million, Ditto sales increased by
$11.4 million, and Bernoulli sales declined by $7.4 million.  For
the six-month period ended June 30, 1996, Zip and Jaz sales totaled
$431.6 million, or 85%, of total sales, Ditto product sales totaled
$56.0 million, or 11%, of total sales, and Bernoulli sales were
$18.0 million, or 4%, of total sales.  When compared to the first
six months of 1995, Zip and Jaz sales increased by $410.4 million,
Ditto sales increased by $21.7 million, and Bernoulli sales
declined by $19.2 million.

Sales outside of the United States in the second quarter of 1996
were $91.8 million, or 32% of total sales, as compared to $14.2
million, or 27% of total sales in the second quarter of 1995.  For
the first six months of 1996, sales outside of the United States
were $175.7 million, or 35% of total sales, as compared to $31.3
million, or 34% of total sales for the comparable period of 1995.

Management expects increased sales of Zip, Jaz and Ditto products
through the remainder of 1996.  However, future market demand for
the Company's products cannot be predicted with certainty. 
Accordingly, there can be no assurance that future sales will
materialize as expected.

GROSS MARGIN
                               
The Company's gross margin percentage for the second quarter and
the first half of 1996 was 26.9%, as compared to 22.2% reported
in the second quarter of 1995 and 25.2% in the first half of
1995.  Gross margins in the first half of 1995 were negatively
impacted by manufacturing start up costs associated with Zip
products.  The Company has also experienced manufacturing start
up costs associated with Jaz products in 1996.  In addition, gross
margins in 1996, as compared to 1995, are negatively impacted
by a shift in product mix away from higher margin Bernoulli products 
to lower margin Zip, Jaz and Ditto products.

Gross margins for the remainder of 1996 will depend in large part
on sales of Zip and Jaz disks, which generate significantly higher
gross margins than the corresponding drives, and on the sales mix
between disks and drives, and between Zip, Ditto and Jaz products. 
Historically, the gross margin of Bernoulli products was generally
in excess of 40%; the gross margin of Zip, Jaz and Ditto product
lines has been significantly lower.  Although the Company expects
the costs of Zip, Jaz and Ditto products to decline in the future
as production increases and the start up costs associated with Jaz
products decrease, the gross margin percentages will depend on the
Company's ability to achieve planned cost reductions, as well as on
recent and any future pricing actions.  The Company does not,
however, expect future gross margins to achieve the levels
historically achieved by Bernoulli.  Also, future gross margin
percentages will be impacted by the mix between OEM and retail
sales, as well as other factors.  In July 1996, the Company
announced a rebate program on Zip products and a price reduction on
Jaz products.  Both of these actions will have a negative impact on
future gross margins.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses represented 14% of
sales for the second quarter and first six months of 1996, compared
to 19% and 21% for the second quarter and first six months of 1995,
respectively.  The decline in these percentages is primarily due to
increased sales volumes in 1996.  The actual selling, general and
administrative expenses increased by $29.0 million in the second
quarter and $52.8 million for the first six months when compared to
the corresponding periods of 1995.  The increased expenses are
primarily the result of advertising expenses incurred to increase
the market awareness of Zip, Jaz and Ditto, 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, in
absolute dollars, to increase further during the remainder of 1996,
as compared to the first half of 1996, due to planned additional
advertising expenses, trade show expenses, variable selling
expenses, and increased fixed administrative expenses.

RESEARCH AND DEVELOPMENT EXPENSES

Research and development expenses were 4% of sales for the three-
and six-month periods ended June 30, 1996.  In 1995, research and
development expenses were 8% of sales in the second quarter and 9%
of sales for the first half.  The decline in the percentages from
1995 to 1996 is due to increased sales volumes.  The actual
research and development expenses increased by $7.6 million for the
second quarter and $10.4 million for the first half of 1996 when
compared to the same periods of 1995.  The increased expenses are
primarily the result of expenditures related to continued
development of Zip, Jaz and Ditto products.  Management expects
continued increases in research and development expenses, in
absolute dollars, during the remainder of 1996, as compared to the
first half of 1996, due to planned increases in resources dedicated
to future product development.

OTHER

Interest expense increased by $2.4 million in the second quarter
and $4.6 million in the first six months of 1996 compared to the
same periods in 1995.  The increases are primarily due to interest
expense associated with the Wells Fargo line of credit, financing
of European accounts receivable, capital leases, other term notes
and the convertible subordinated notes.  Management expects
interest expense to decline during the remainder of 1996, as
compared to the first half of 1996, due to lower outstanding debt
balances.

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.

Other income in the first half of 1995 consisted primarily of
interest income, royalty income, and other miscellaneous income. 
Other expense in the first half of 1996 consists of miscellaneous
other expense items.

INCOME TAXES

For the first half of 1996, the Company recorded a tax provision of
$15.7 million, representing an effective income tax rate of 39%. 
The tax rate has increased from the rate of 20% recorded in the
first six months of 1995 due to the Company's expected full
utilization of available tax credits and foreign net operating loss
carryforwards in 1996.  The Company anticipates that the effective
income tax rate will remain at 39% for the remainder of 1996. 
However, differences between the currently anticipated mix of
foreign income versus domestic income, and the actual mix, will
have an impact on the income tax rate that is recorded in future
quarters.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 1996, the Company had cash and cash equivalents of
$160.7 million, working capital of $244.6 million, and a ratio of
current assets to current liabilities of 1.9 to 1.  During the
first half of 1996, the Company's cash and cash equivalents
increased by $159.7 million, comprised of $219.2 million provided
from financing activities offset by $35.4 million used in investing
activities and $24.1 million used in operating activities.

Included in cash and cash equivalents provided from financing
activities is $43.1 million in net proceeds from the issuance of
convertible notes which were issued in March 1996 and $191.2
million in net proceeds from a follow-on public offering of common
stock which was completed in June 1996.  These proceeds were offset
by $18.2 million of net payments against notes payable and capital
lease obligations.  The primary component of cash and cash
equivalents used in investing activities is $35.5 million used for
the purchase of property and equipment.  Net cash used in operating
activities includes an increase of $74.1 million in net accounts
receivable and an increase of $47.5 million in inventories.  These
uses of cash and cash equivalents were offset by an increase of
$85.6 million in accounts payable and accrued liabilities.

On July 5, 1995, the Company entered into a loan agreement with the
Commercial Finance Division of Wells Fargo.  Effective May 13,
1996, the Company renewed and amended its loan agreement with Wells
Fargo.  The amended agreement permits revolving loans, term loans
and letters of credit up to an aggregate outstanding principal
amount equal to the lesser of $100 million or 80% of eligible
accounts receivable.  Amounts outstanding are collateralized by
accounts receivable, inventory, equipment, general intangibles and
certain other assets.  The new revolving line bears interest at the
bank's prime rate plus 0.5% and the term loans bear interest at the
bank's prime rate plus 0.75%.  This agreement expires June 30,
1997.  Under this agreement, the Company may also secure financing
of equipment purchases from third parties up to a maximum of $75
million, less term loans outstanding to Wells Fargo.  Among other
restrictions, covenants within the agreement require the Company to
maintain minimum levels of working capital and net worth.  In
November 1995, a foreign subsidiary of the Company entered into an
agreement with a German commercial bank for up to DM 50 million
(approximately $35 million), which involves the sale of a portion
of the foreign subsidiary's accounts receivable to the bank.  In
addition, the Company has entered into various agreements to
provide capital lease financing and other term loans for the
purchase of certain manufacturing equipment.

The Company's balance sheet at June 30, 1996 reflected short-term
borrowings of $33.7 million, consisting of borrowings under the
German loan agreement of $29.9 million, term loans of $1.1 million,
and the short-term portion of capitalized lease obligations of $2.7
million.  At June 30, 1996, the Company's long-term borrowings were
$52.5 million, consisting of $45.7 million of convertible notes,
$4.7 million of capitalized lease obligations and $2.0 million of
other term notes.  The borrowings have been used to finance working
capital needs, including increases in accounts receivable and
inventories and capital expenditures related to production volume
increases.

Net accounts receivable increased by $74.1 million at June 30, 1996
when compared to December 31, 1995, due primarily to increased
sales.  Inventory increased by $47.4 million.  The increase in
inventory was primarily in finished goods (which increased by $37.5
million).  The majority of the $41.5 million in finished goods
inventory relates to the Zip product line.  The increases in
accounts receivable and inventory were offset by increases in
accounts payable and accrued liabilities of $64.6 million and $21.0
million, respectively.

Additions to property and equipment for the first half of 1996
totaled $41.7 million, offset by $6.2 million in proceeds from
capital leases.  These additions were primarily related to
increased manufacturing capacity for Zip, Jaz and Ditto products. 
The Company expects property and equipment additions to continue to
be significant in future quarters as production capacity is added
for all product lines.  

In July 1996, the Company announced that it has entered into an
agreement to purchase a hard-drive manufacturing facility in
Penang, Malaysia from Quantum Corporation.  The purchase price of
approximately $28 million is expected to be financed over a 
three-year period.

In August 1996, the Company announced that the Board of Directors
has authorized the repurchase of up to 2,000,000 shares of Common
Stock.

The Company expects that its balance of cash and cash equivalents,
together with current sources of available financing will be
sufficient to fund the Company's operations into 1997, including 
planned expenditures for capital equipment, facilities and share 
repurchases as discussed above.  Thereafter, the Company may require 
additional funds to finance its operations.  The precise amount and 
timing of the Company's future financing needs cannot be determined 
at this time, and will depend on a number of factors, including the 
market demand for the Company's products, the availability of critical 
components, the Company's strategic alliances for the manufacture of 
its products, the progress of the Company's product development efforts, 
the success of the Company in improving its inventory management, the
Company's management of its cash and accounts payable, and the
Company's ability to renew or replace its currently available
credit agreements.

FACTORS AFFECTING FUTURE OPERATING RESULTS

Because the Company is relying on its Zip and Jaz products for the
substantial majority of its sales in 1996, the Company's future
operating results will depend in large part on the ability of those
products to attain widespread market acceptance.  Although the
Company believes there is a market demand for new personal computer
data storage solutions, there can be no assurance that the Company
will be successful in establishing Zip and Jaz as accepted
solutions for that market need.  The extent to which Zip and Jaz
achieve a significant market presence will depend upon a number of
factors, including the price, performance and other characteristics
of competing solutions introduced by other vendors, including the
LS-120 and Syquest Technology EZ Flier 230 and SyJet 1.3GB, the timing 
of the introduction of such solutions, and the success of the Company 
in establishing OEM, arrangements for Zip and Jaz with leading personal 
computer manufacturers and in educating consumers about the existence and
possible uses of Zip and Jaz products as storage devices.  In
addition, component shortages or other factors limiting the supply
of the Company's products, could limit the Company's sales and
provide an opportunity for competing products to achieve market
acceptance.

A number of elements of the Company's business strategy may also
directly impact the Company's future operating results.  Because
the Company's marketing strategy is based in significant part on
generating consumer awareness of and demand for its products, the
Company plans to incur significantly increased marketing and
advertising expenses in the remainder of 1996.  In addition, a
critical element of the Company's distribution strategy is the
establishment of OEM arrangements for its Zip, Jaz and Ditto
products.  OEM sales generally provide lower gross margins than
sales to other channels.  Moreover, reductions in the prices of the
Company's Zip, Jaz and Ditto products, such as the Zip rebate
program and the Jaz price reductions which were announced by the
Company in July 1996, would likely have an adverse effect on gross
margins for those products.

The Company's business strategy is substantially dependent on
maximizing sales of its proprietary Zip and Jaz disks, which
generate significantly higher margins than its disk drives.  If
this strategy is not successful, either because the Company does
not establish a sufficiently large installed base of Zip and Jaz
drives, because the sales mix between disks and drives is below
levels anticipated by the Company, because another party succeeds
in producing disks that are compatible with Zip and Jaz drives
without infringing the Company's proprietary rights, or for any
other reason, the Company's sales would be adversely affected, and
its net income would be disproportionately adversely affected.

Although sales of Zip drives and disks were the primary reason for
the Company's revenue growth during 1995 and the first half of
1996, sales of such products may be attributable in large part to
the novelty of such products and the initial publicity surrounding
the introduction of Zip and Jaz and may not be indicative of the
long-term demand for such products.  Moreover, the retail market to
which the Company's products are targeted is seasonal, with a
substantial portion of total sales typically occurring in the
fourth quarter, and sales slow downs commonly occurring during the
summer months, particularly in Europe.  In addition, some retailers
have been experiencing sales decreases and certain analysts have
predicted continued softening of this market.  Accordingly,
investors should not assume that the sales growth experienced by
the Company in 1995 and the first half of 1996 is an indication of
future sales.  Moreover, in light of the Company's revenue growth
in 1995 and the change in the nature of its business over the past
year, the Company believes that period-to-period comparisons of its
financial results are not necessarily meaningful.  In addition, the
Company has experienced and may experience significant fluctuations
in its quarterly operating results.

The Company's European sales are predominantly denominated in
foreign currencies.  In addition, the Company purchases certain
components in foreign currencies.  The Company enters into forward
exchange contracts to sell and purchase foreign currencies as a
means of hedging its foreign operating cash flows.  Fluctuations in
the value of foreign currencies relative to the U.S. dollar could
result in foreign currency gains and losses.


PART II - OTHER INFORMATION

                      IOMEGA CORPORATION


Item 4.          Submission of Matters to a Vote of Security Holders

At the Company's Annual Meeting of Stockholders held on April 23,
1996, the following proposals were adopted by the vote specified
below:

                                     Against/              Broker
Proposal                   For       Withheld    Abstain  Non-Votes

1. Election of Directors:

   Willem H.J. Andersen  51,367,187   210,180       0         0
   Robert P. Berkowitz   51,360,966   216,407       0         0
   Anthony L. Craig      51,367,487   209,880       0         0
   David J. Dunn         51,367,187   210,180       0         0
   Kim B. Edwards        51,367,460   209,907       0         0
   Michael J. Kucha      51,366,912   210,455       0         0
   John R. Myers         51,366,437   210,930       0         0
   John E. Nolan, Jr.    51,367,103   210,264       0         0
   The Honorable
       John E. Sheehan   51,367,487   209,880       0         0

2. Ratification of
   Arthur Andersen 
   LLP as independent 
   auditors.             51,159,286   183,379   234,702       0

   
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 during the
                    quarter for which this report on Form 10-Q is
                    filed.
               
<PAGE>

                           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:  August 14, 1996             Kim B. Edwards
                                President and Chief Executive Officer



                                /s/ Leonard C. Purkis
Dated:  August 14, 1996             Leonard C. Purkis
                                Senior Vice President, Finance
                                and Chief Financial Officer

<PAGE>

                         EXHIBIT INDEX


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

Exhibit No.      Description

10.33            Lease dated April 9, 1996 between the Company
                 and Security Capital Industrial Trust.