The shareholders sued. Iomega lost focus. There were product delays and problems, such as the infamous Click of Death, lousy customer relations and Iomega became one of the most hated companies in the high tech world. Iomega's business went into a tailspin with quarter after quarter losses. At this moment revenues are still falling and gross margins have dropped 10 percent from last year due to a larger mix of OEM sales and price cuts.
Cash flow looks terrible.
It's down over 30 percent from last year's level and debt is increasing, up 51 percent from last year. Even the winds of changing technology bode ominously ill for Iomega. Sony has 30 years of experience at copping market share from the bumbling hands of American corporations. Iomega must seem like a babe in the woods to them. Well, they lost their main competitor to bankruptcy.