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Technology Stocks : Zitel-ZITL What's Happening
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To: Bill Wexler who wrote (11318)10/10/1997 10:54:00 AM
From: CalculatedRisk   of 18263
 
Bill, I obtained a copy of the new MD brochure - more like a 2-sided data sheet - titled "MatriDigm Advanced Process 2000". MD has dropped the more outrageous claims in their previous brochure. Instead of claiming "With MatriDigm, the year 2000 solution is fast and fully automated", MD now admits that the conversion process requires "Work Unit Controllers, Domain Specialists and Technical Support Specialists ... to assure all process steps are followed and all exceptions are resolved."

This is critical. To justify their current market cap, Z/MD must generate several billion dollars in revenue over the next two years. In addition to a very successful marketing program, the MD solution must be extremely automated, since it is always difficult to ramp-up qualified personnel. This admission by MD, that the process requires several specialists, means that Z/MD cannot achieve the required revenue.

Regards, Bill
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