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Technology Stocks : RGFX Raster Graphics
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To: Sam Citron who wrote (100)7/28/1997 12:10:00 PM
From: darren_   of 593
 
I would imagine that this contract will be terminated or revised. RGFX is concentrating on consumables and OCE supplies their own for the printers that they sell as did 3M. BTW, 3M has a tremendous consumables business. They are *the* name to buy if you are looking for a high end application. Most of the stuff I for premium applications is made by 3M. 3M also sells DCS printer under their own name but they just came out with a similar machine called the ScotchPrint 2000 which is similar to the DCS 5442. I believe that 3M may have dropped the RGFX product with the introduction of this machine and this may account for a drop in US revenue, although we still had a great quarter.

With this in mind, I believe that their is room for SIGNIFICANT growth for the following quarters. Rak did express concern about Q3 being seasonally weak. This may be true for overseas markets, but for the US, Q3 is usually pretty strong.

Darren

Announcement just out for Postershop. VERY good news for high margin software sales.

biz.yahoo.com

All we need now is the approval of the P5000 for the 3M ScotchPrint graphics (the DCS printers already are). Also, a note about P5000 sales - It was interesting that we had any sales of the P5000 at all because, until recently, there wasn't a variety of consumables available. This is extremely important for sales. I see a big gain in P5000 sales for the current quarter now that there is a decent amount out there now.
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