Iomega's fourth-quarter profits have taken a dive due to falling demand for Zip and Jaz drives.
The company's profits tumbled to $3.9 million from $22 million a year ago. Revenues dropped to $189.9 million from $331 million.
Chief executive Werner Heid of Iomega said: "We're focused on building upon our profitable core Zip product line and expanding our position in external CD-RW solutions in order to reverse the revenue decline.
"We are also putting in place initiatives to broaden Iomega's product line to expand on our position as a leading global provider of solutions for the storage, sharing and protection of digital valuables.''
Heid continued: "We have made significant progress, but we still have a long way to go to get this business in the shape it needs to be in.''
He added there is no "quick fix'' to the company's problems: "We are living in a real uncertain economy. We have done a lot of restructuring and we are still in the middle of seeing the final fruit of all these restructuring activities.''