Iomega Corp, Roy, Utah, whose stocks have run the gamut this year from a high of $55 to a $2 low, ended up 1.9% at $28 yesterday after the firm announced second quarter profits of $25.5m and the purchase of Quantum Corp’s Malaysian disk manufacturing facility. Iomega needs the extra capacity for making Jaz drives and platters and Quantum has excess space in Penang, Malaysia after its Digital Equipment Corp buy. Iomega paid $28m for the site, which will be financed over three years. Last year Iomega reported second quarter losses of $2.5m, but this year claims its popular Zip, Jaz and Ditto lines make it a company reborn. The company’s second quarter net income was reported at $14.1m in comparison to losses of $2.0m last time, on revenue up at $283.6m from $52.6m; mid term net profits were $24.2m, in comparison to losses of $3.5m last time, on revenue up at $505.6m from $92.7m.
