Settlement near in technical help-line suit

Article Abstract:

Iomega's controversial fees for customer service should change soon after a Delaware class action lawsuit receives final approval on Apr 3, 1998. Since 1996, Iomega has charged customers $14.99 per phone call regarding Zip and Ditto storage drives and $19.99 for Jaz drives, excluding potentially lengthy telephone time. Customers are required to provide a credit card number before reaching a technician, even if problems included installation. Iomega alone reserves the right to make exceptions for calls regarding defective problems. Partial terms of the proposed settlement would require Iomega to provide free technical support to Jaz and Ditto customers within the first 30 days of the user's first call during the warranty period. Charges then would apply after expiration. Iomega's Zip customers will still pay $14.99 per call unless the product is defective. Customers who purchased a Zip unit between Jan 1, 1996, and Sep 1, 1997, will receive a $5 discount on their first call if one has not yet been made.

Company legal issue, Cases, Services, IOM, Customer service, Company services, Delaware, Litigation, Lawsuit/litigation

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I.B.M. to lift output of hard disk drives for computers

Article Abstract:

IBM plans to invest $500 million between 1996 and 1998 to increase its production of high-capacity 3.5-in disk drives and 2.5-in drives. The new amount will be added to the $250 million the company already planned to spend on expansion and will increase IBM's disk-manufacturing capabilities by 60%. IBM officials and industry analysts agree that demand for disk drives is growing, despite the overall weakening in the PC market. IBM uses the drives it manufactures internally and sells them to other computer vendors. Revenues from disk drives grew 50% in 1995, totaling $1.5 million. IBM has not been as successful in selling data storage devices, which consist of many disk drives linked together. IBM lost a substantial share of the data storage market to EMC Corp in 1995. Officials believe the increased manufacturing ability will allow them to lower the cost of data-storage devices.

Product development, Product information, International Business Machines Corp., IBM, Disk drives, Hard disk drive, Company product planning

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The talk of cyberspace: is Iomega losing its zip?

Article Abstract:

Iomega's high stock values fail to convey the company's precarious position. The company faces difficulties obtaining parts to build its high-capacity disk drives and still lacks patents on its disk technology, allowing competitors to utilize their technology. Iomega hopes to avoid cash flow problems and Wall Street concerns by offering $40 million in convertible notes. This public offering will help finance company operations through Jun 1996. Iomega's 1995 surge in share prices was the result of an amazing turnaround. Rapidly developing data storage technology made the company's once popular Bernoulli disk drives obsolete, but Iomega quickly created a new niche with its Zip, Jaz and Ditto disk and tape drives. The products quickly improved company sales, but financial analysts warn that these improvements may not be indicative of future revenues.

IOMG

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