DB:
There is no deal. After considerable due dili, AVRI realized that buying MEMO would not make sense to their shareholders. AVRI already qualifies for NASDAQ Small-Cap, so they do not need the listing, though that was one of the attractions for MEMO, instant listing. But when the company really dug in, the merge did not make sense. I was ambivilant about the merge as I was there at the end of the talks and not the begining. Nevertheless, AVRI has some news expected out this week that should illustrate their going fast toward national marketing of their product. Doctors spend 2-5 thousand a month on transrciption and by utilizing AVRI's technology, save 50% off that cost. I have personally spoken to some doctors who are very excited about this product. And with IBM as partner, AVRI has great credibility, not only technically, but in the market place as well. I think that AVRI's move into medical transcription was very smart. It is fragmented, large and can vertically integrate the business. There is no one in this specific field, so competition is limited. Also, unlike Lernout&Hauspie, who sell alot of "shrink-wrap" products, AVRI's product is not dependent on a good economy for continual sales.
As a small company there is certainly alot of risk, but, I think they should have great acceptance in the market place for their products. |
