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

To: NYBellBoy who wrote (13845)	1/26/1998 1:20:00 PM
From: CalculatedRisk	Read Replies (3) \| Respond to of 18263

BellBoy, the CC was stunning! The transcript should be available Tuesday or Wednesday ... The stated reason for the Monday A.M. CC was to announce the layoffs. Management acknowledges these initial layoffs are not sufficient and I expect Zitel to move out of their Fremont facility and announce additional cutbacks. (When I visited Zitel last year, I was amazed at the size of their facility) When Chait started asking the rhetorical question, "Is something wrong?", I couldn't stop laughing - so I missed parts of what he said. Basically, the "good news" for Zitel longs were the same old straws in the wind. The MD technology is great. The market is late. When companies wake-up, they'll come running to MD (and Zitel). ROFLMAO!!!! I definitely enjoyed the discussion of "aggressive pricing" ... so Y2K conversion prices are falling <G>! The NY deal is another joke ... and the analysts saw right through the subterfuge! I did enjoy the one "question" about NY checking Zitel financial viability<G>. I'll post more after the transcript is available - to make sure my quotes are accurate. Best Regards, Bill

To: NYBellBoy who wrote (13845)	1/26/1998 4:23:00 PM
From: CalculatedRisk	Read Replies (2) \| Respond to of 18263

BellBoy, re: CC. I listened to the CC BS again. A few points: 1) They have 1 portable code factory (same as last quarter). 2) The savings from the layoffs is estimated at $700K to $800K per quarter. 3) Management claims they can survive for 6 months based on a model using cash on hand, line of credit, and additional cutbacks. The line of credit is for $3M and expires on Jan 31, '98. (What bank would loan Zitel money?) 4) There were 5 questions, the first was from (I believe) Emerald's Joe Besecker. The moderator didn't mention Emerald and mispronounced the name ... we need the transcript to verify. Of the 5 questions, 3 were completely lightweight. One questioned the NY contract ... its a joke. The other broke down revenues: storage was just over $3M, the remaining revenue was from software/Datametrics. Best Regards, Bill