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

To: Rubber Man who wrote (13167)	12/3/1997 8:29:00 AM
From: Stanley L Brown	Read Replies (2) \| Respond to of 18263

RM, Am I crazy or???? From the most recent 10-K page 2 >>In September and October of 1994, IBM announced general availability of RAMAC products, which incorporate Zitel technology, and upon which the Company is receiving royalties based on RAMAC products sold. In October 1995 and September 1996, IBM announced the general availability of RAMAC 2 and RAMAC 3, respectively, its second and third generation of RAMAC, which continue to include Zitel technology and upon which Zitel will receive royalties. Royalties from RAMAC products constituted 38%, 65% and 63% of total revenue in fiscal 1994, 1995 and 1996, respectively. In the event that IBM should replace its current RAMAC products with products that do not incorporate the Company's technology or if sales of royalty bearing products were to produce significantly lower royalty payments and the Company were to be unable to generate profitable revenue from other sources, the Company could be unable to continue operations as currently conducted.<< I read this as saying, even though the royalties are steadly decreasing (low down mind messing gonna be working at the carwash soon blues) the precentage of royalties to overall revenues are dramatically increasing. Is it just me or is this company heading hard and fast to being unable to continue operations as currently conducted??? Happy Trading Stan