You guys can go ahead and dump your shares, but I wouldn't do it on the basis of the Motorola/Kodak announcement.
I'm a lawyer, not a techie, but it seems to me that the Kodak/Motorola announcement concerns HARDWARE, while Cornerstone's document imaging business involves SOFTWARE. Assuming the posted info about insider sales is accurate (and if it is accurate, I think it should be more specific as to the identities of the director and officers involved, and the amount of shares sold by and still held by each) the motivation for selling could be (1) totally unrelated to Cornerstone's business, (2) reflect a desire to diversify out of a stock whose performance has not matched the company's, or (3) anticipation of a possible (perhaps now, likely) earnings disappointment. I seriously doubt the sales had anything to do with inside knowledge of Kodak's and Motorola's confidential business plans. If they thought the news were so harmful to CRNR they'd be selling alot more than 47,000 shares.
There is no more basis for a rumor that Kodak/Motorola's hardware plans are going to harm CRNR's software business than there would be for a rumor about CRNR entering into a joint venture with Kodak and Motorola for imaging technology.
Here is the text of the Business Wire story, for anyone who wants to draw their own inferences:
PHOENIX--(BUSINESS WIRE)--June 23, 1997--Eastman Kodak Company and Motorola Semiconductor Products Sector (NYSE:MOT) Monday announced that they are working together to develop Advanced CMOS Imager (ACI) technology.
By combining Motorola's manufacturing and semiconductor integration capabilities with Kodak's technology expertise in digital imaging products, the two companies will develop CMOS sensors for use in the growing digital imaging marketplace. CMOS (Complementary Metal Oxide Semiconductor) is a high performance, low power manufacturing process with integration capabilities that make it ideal for low cost, high volume digital circuits.
"CMOS image sensors are broadly applicable to our future high-volume digital products, complementing our line of high performance CCD (charge coupled device) imaging sensors," said Robert Unterberger, president of Kodak's Digital and Applied Imaging Division.
Hector de J. Ruiz, president of Motorola Semiconductor Products Sector, views the partnership as a direct path to sustaining growth in new markets. "The ability to integrate vision capability with mainstream CMOS manufacturing will add a new dimension and excitement to the way people communicate -- beyond voice and data to transporting information through images."
ACI sensors will be manufactured on the ImageMOS(TM) technology platform, featuring outstanding image quality with low-power consumption. ImageMOS is based on a standard CMOS manufacturing process with enhancements and controls that improve imaging performance.
This technology allows Motorola and Kodak to create a totally integrated solution by combining analog and microprocessor technologies on to the sensor chip. Utilizing advanced design systems, Motorola and Kodak will be able to create market-specific image solutions addressing a broad range of applications.
"We are already seeing a need for this technology in traditional markets such as cameras and scanners, but the applications are far broader," stated Carlos Genardini, general manager, Consumer Systems Group at Motorola. "Additional applications where we expect this technology to provide enhancements include transportation, wireless consumer, security and industrial applications."
"Advanced CMOS imagers are particularly attractive for high volume, low cost digital still cameras. The lower power consumption and ability to integrate more functions onto the image sensor will enable the design of smaller, lighter cameras with longer battery life," stated Jeffrey Peters, general manager and vice president of Kodak's Digital and Applied Imaging Microelectronics Group.
With $16 billion in annual sales, Eastman Kodak Company is the world leader in imaging, serving both consumers and imaging professionals. To meet the needs of these customers the company manufactures and sells a wide variety of products ranging from traditional cameras, films, papers and chemistry to digital cameras, thermal printers and media, and inkjet media.
In addition, Kodak provides photographic processing and digital imaging services. The company is committed to meeting its customers' imaging needs, regardless of the technology.
With 1996 worldwide sales of $7.9 billion, Motorola's Semiconductor Products Sector is committed to enabling its customers' success by providing systems solutions, processes and services to anticipate and respond to changing technologies and market dynamics.
As the largest U.S.-based, broad-line semiconductor supplier, the Sector delivers global resources, product design and development expertise and the highest-quality technology solutions to its customers. Motorola semiconductors power automobiles, communications and computing systems, and millions of other consumer products.
In the global marketplace, Motorola also is one of the leading providers of wireless communications, advanced electronic systems, components, and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Corporate sales in 1996 were $28 billion. -0-
NOTE TO EDITORS: ImageMOS is a trademark of Motorola
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