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Technology Stocks : Storage Dimensions - STDM

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To: nick cash who wrote (231)9/24/1997 7:38:00 PM
From: kvogel   of 311
 
Conference call number : 402-222-9743, no ID required.
Problem was as stated in release: underperforming sales force. Actually, my read is that management has been screwing up. They've come out with good products and pricing but only have a small sales force. Thus, when someone gets a server and NO ONE from STDM is there to explain the advantages of using STDM products, the customer buys the storage system from the server company- IBM,CPQ,HP,etc. This was even acknowledged by CEO Eeg. He has goal to increase the sales force to about 40 by early next year. Company's balance sheet is good, inventories good, some weakness in Tape-drive systems because tape drives allocated by Quantum. Still, SALES IS THE BIG DRIVER. Management seems awake now but tommorrow might be pretty bloody. Good luck to all!

Karl
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