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Technology Stocks : USRX

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To: Tim who wrote (17947)6/3/1997 3:03:00 PM
From: Larry Holmes   of 18024
 
Regardless of how well USRX and x2 are doing TODAY, they can't rest on their laurels. They must continue to get everyone they can to use x2, to make it the de facto standard. Regardless of the technical problems K56flex is having, sooner or later, it will be available. If USRX competitors cannot license x2, they have no choice but to use K56, and that will ultimately cause some problems in the market. In order to fully dominate the market, USRX must make the technology available to all who will meet contract terms, etc.

x2 is currently the leader, but for the most part, the customers are what one would call "techie"; that is, the customers are the ones who usually buy new products just as soon as they come out. The largest market segments, by far, are customers who will NOT do this; they will wait until the dust settles and make their choice for non-technical reasons as much as technical ones. By licensing the technology, USRX is positioning itself for those markets, which demand universal compatibility, and have shown in the past that they will bypass absolute technical superiority in favor of compatibility, universal access, and other issues.

Larry
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