Iomega Chief Executive Heid Resigns

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February 03, 2006 (6:38 PM EST)

By Antone Gonsalves , TechWeb Technology News

Iomega Corp. on Friday said Werner T. Heid, president and chief executive of the storage-device maker, has resigned. No reason was given for his departure.

The San Diego-based company said Heid's resignation followed discussions with the board of directors. Board chairman Stephen N. David was appointed chief executive on an interim basis.

In announcing the resignation, David said in a statement that moving the company "to new market segments and innovative products has been a very difficult management challenge, and Werner has provided leadership to guide Iomega through this restructuring and reorientation phase."

The board, however, now feels that the company "must refocus on its future strategy, with the key need for a strengthened business plan that can better enable Iomega to deliver higher margin product solutions and consistent profitability."

Last month, Iomega reported a significant drop in revenues in the fourth quarter due to lower sales of Zip drives and Mini USB flash drives. Sales in the quarter dropped $19.6 million from the same period a year ago to $70 million. Profits fell to $1.9 million from $3.8 million in the same quarter in 2004.