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Iomega CEO resigns
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March 25, 1998: 9:56 a.m. ET
Edwards quits disk drive maker before it posts first-quarter loss of up to $25M
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NEW YORK (CNNfn) - Iomega Corp. Chief Executive Officer and President Kim Edwards resigned Wednesday, less than two weeks after the disk drive maker said it will report a loss of up to $25 million for the first quarter.
The Roy, Utah-based company said James E. Sierk, a former top executive at industrial titan AlliedSignal Inc., will become acting president and CEO.
Sierk, who joined Iomega's board of directors just six months ago, won't be a candidate for the full-time job, the company said.
Iomega credited Edwards with transforming a small-fry company into a dynamic player in the disk drive market.
"The board of directors very much regrets Mr. Edwards' departure," said Iomega Chairman, David J. Dunn. "Under his leadership, Iomega grew from $141 million in annual sales to over $1.7 billion in 1997."
But last week, Iomega warned higher-than-expected marketing costs and a slowdown in shipments will lead to a loss of $10-25 million in the first quarter. The company is expected to report earnings for the quarter on April 16.
Iomega shares have plunged since the start of 1998, after the company reported earnings that didn't meet analysts' estimates for the fourth quarter of 1997.
Shares of Iomega (IOM) closed Tuesday up 1/16 at 7 3/8. As recently as mid-January, just before announcing its fourth-quarter results, the company shares traded in a $12-$14 range.
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Iomega
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