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Technology Stocks : Cornerstone Imaging (CRNR)

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To: Mark A. Stang who wrote (261)	6/25/1997 1:01:00 PM
From: Al Klein	of 430

Mark-- Do you know if the First Call estimates reflected the fact that there appears to be a move away from the proprietary ISIS scanner driver standard from Pixel Translations (now wholly owned by Cornerstone)? The competing standard, called TWAIN, is an open systems standard. It has recently gained momentum with the announcement at the AIIM show that Bell&Howell, Fujitsu, Kofax, and Ricoh have joined the TWAIN working group to add in requirements for high-speed production scanners. I don't know what the royalty revenue stream is to Cornerstone for scanner manufacturers who presently use the ISIS standard. (Does anyone know this?) But this move will put some pressure on that, if the TWAIN spec is strengthened through the addition of these heavy hitters. Most every heavy production scanner manufacturer uses the ISIS standard, which implies some sort of royalty to Cornerstone. There is almost a universal trend to move to open systems standards, and away from proprietary ones. The move to TWAIN is just following this trend. I don't think the loss of revenue is significant, but in my opinion, this is not advantageous for Cornerstone. Al

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