Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: Graeme Smith who wrote (12474)	10/31/1997 7:26:00 PM
From: DD™	Respond to of 18263

Taken from Motley Fool Evening News... "Former Year 2000 problem remediation software star ZITEL CORP. (Nasdaq: ZITL) (N) (S) was smeared for a $2 7/16 loss to $14 3/16 on announcing fourth quarter revenues of $6.3 million and a net loss of $5.5 million, or a loss of $0.35 per share, before an extraordinary charge..." DD

To: Graeme Smith who wrote (12474)	10/31/1997 7:44:00 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 18263

Graeme, Zitel consolidated the balance sheet but not the P&L in fiscal Q3 (end June 30). This is highly unusual. This quarter, they also consolidated the P&L - and this is the reason for the large sequential increase in revenues. When an acquisition is material (as in this case) any reputable firm would always make sure the comparison was "apples to apples". Not Zitel! After last quarter's loss report, I speculated that something was wrong with the acquisition: exchange2000.com When the 10-Q was filed, we discovered that revenues had dropped below Zitel projections: exchange2000.com Now revenues for the acquisitions have plunged to $2.2M during this last quarter. Obviously, Zitel bought a "pig in a poke". BTW, congratulations on your 13 5/8 pick. I believe you are the winner! Best Regards, Bill