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Technology Stocks : Dialogic ready to soar, funds buying

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To: Norseman who wrote (432)9/3/1997 8:50:00 PM
From: Jay M. Harris   of 674
 
Hello Norseman,

I'm sorry I can't be more assistance on what I think are very interesting observations on your behalf. With regard to the change in management I don't believe this will have any impact on sales. The new CFO will have a direct impact on the various expenses as a percent of revenue and on balance sheet productivity,(inventory turns, DSOs etc). This was the companys main problem IMO.

Now the new secretary (general counsel from Lucent) will write more productive contracts related to new engineering designs. This conceptually could have an impact on revenue with new product initiatives. However, not being an insider, this is very difficult to guage. The thought is that future contracts for DLGC to perform R&D would require specific levels of product "take down" within specific time frames from the target customer accepting the contract.

With regard to Howard delegating more, my short answer is I hope so.

Norseman, the sales in this company will catch the technology, however, it will probably take longer than many expect (1998).

Happy Investing,

Jay
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