Issues of Fact:Alpha brings $12 million suit against Lernout Hauspie, 12-9-97.
Alpha Software Corporation Brings Suit Against a Division of
Lernout & Hauspie
BURLINGTON, Mass. (Dec. 9, 1997) - Alpha Software Corporation, a
subsidiary of SoftQuad International Inc. (NASDAQ: SWEBF;
TSE:SKI) , announced today it has filed a legal action against
Kurzweil, Inc. (formerly Kurzweil Applied Intelligence, Inc.), a division
of Lernout & Hauspie (NASDAQ: LHSPF, EASDAQ:LHSP.ED),
seeking an estimated $9 to $12 million in damages for breach of
contract, plus consequential and other damages. Alpha Software's
claim is based upon Kurzweil's violation of Alpha Software's
contractual right of first refusal for exclusive distribution rights, in the
United States and Canada, to Kurzweil's forthcoming line of
continuous voice recognition software products. Recently, Lernout &
Hauspie, which purchased Kurzweil Applied Intelligence in 1997,
announced that it would market these programs itself.
"We felt that the relationship we had with Kurzweil was extremely
productive for both parties," said Alpha Software's C.E.O. Richard
Rabins, "and we are shocked by Kurzweil's outright renunciation of
our agreement for new continuous voice recognition products. Alpha
Software intends to aggressively pursue recovery of all damages to
which it is entitled."
Alpha Software's sales this quarter have been negatively impacted by
the decline in sales of Kurzweil VoicePad, VoicePlus and VoicePro
which compete in the discrete dictation voice recognition software
category. The dictation category has moved rapidly from discrete
dictation products to continuous dictation products. Alpha had
originally anticipated that it would ship VoiceExpress, Kurzweil's
continuous voice dictation product, at the end of the fourth quarter.
Alpha anticipates a shortfall in net revenue from voice products in the
fourth quarter of approximately $1 million (U.S.)..."
alphasoftware.com |
