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Non-Tech : ZOLT
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To: Ram who wrote (98)1/29/1997 11:29:00 AM
From: Todd King   of 970
 
Ram.

I checked the annual report. One concern I had was R&D expenditures were only $643,000, less than 1% of sales. Would seem very low relative to the vision outlined for new product development. R&D, in many respects, is an investment like capital spending, and can be a forward indicator.

ZOLT seems to be following a strategy that the product will sell itself if the price is low enough. From my perspective, this carries some risk, as customers are putting ever more pressure on suppliers to participate in product development. Would be interested in the thoughts of others.

Todd
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