Zitel-ZITL What's Happening Message Board

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Technology Stocks : Zitel-ZITL What's Happening

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To: Quad Sevens who wrote (309)	10/24/1996 12:56:00 AM
From: Warren Gates	of 18263

From what I understand about a beta test, you're a guinea pig, therefore you try to break the system ... I would think they should ram that full 20 million lines of code in there for a successful beta test ... Anyway, my bigger argument is the $.30 per line Emerald estimate ($2 per line for the whole enchilada) ... based on experience, $.63 per line was what we've come up with for doing the whole thing (renovation, testing, implementation, proj mgt) ... which computes to roughly $.06 per line for the conversion phase alone ... Using $.06 per line, average of 10 Million lines is $600K per conversion, an optimistic estimate of 50 conversions for 1997 grosses $30 million for Matridigm ... 35% stake grosses $10.5 Million for Zitel, operating profit of $2.1 Million or roughly $.30 EPS ... PE of 50 gives $15 per share ... add to $10 for the company's core business to get $25 ... which probably will grow to $40 in 1998 then decline

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