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Technology Stocks : Intermec Inc. (formerly Unova Corporation)

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To: Cooters who wrote (180)6/1/2006 12:06:00 PM
From: Bill Harmond   of 222
 
Gartner on Alien:

...Alien's current reader strategy — which Gartner believes is to be the low-price vendor in the market — has not been matched by a low-cost manufacturing capability, making the strategy unsustainable. Without a differentiating reader strategy, public status will subject the vendor to ongoing scrutiny of its financial position, as in 2005 the vendor made an operating loss of $53 million. The market will likely look at Alien's recently reported deal to supply 15,000 readers to Wal-Mart as evidence of orders to support scale manufacturing capabilities to reduce costs. However, users should not yet incorporate this deal into their vendor viability analysis of Alien, given the context of this announcement. The vendor states that its strategy is to differentiate its readers based on the performance of its readers, but Gartner has not seen significant market-based evidence of this strategy yet...

...Users should not make strategic acquisitions of Alien readers until Alien proves it has product leadership and no longer relies on price fighting, which results in ongoing operating losses. Bringing innovation and new product lines fuelled by IPO investments could satisfy this requirement.


gartner.com
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