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

To: Michael who wrote (14592)	3/13/1998 5:44:00 PM
From: Michael	Read Replies (2) \| Respond to of 18263

Reviewing Zitel's Cash Flow. 1) Zitel had $7.1 mil in cash on 12/31/97 2) Zitel other assets (Acc/Rec & Inventories) $10.6 mil. Zitel also had $4.1 mil. in Acc/Pay and $5.0 in accrued liab. IMHO the Payables more than offset the Rec. and Inventory as far as being able to generate positive cash flow. With this in mind, that means Zitel is currently depleting it's cash rapidly. Between Zitel and MatriDigm, Zitel spent $7.2 mil in cash , last Quarter. This equals about $2.4 Mil. a month in negative cash flow. Assume that Zitel mangement will try to cutback expenses, I project the following. Jan. Cash lose of $2.2 mil. Feb. Cash lose of $1.8 mil. Mar Cash lose of $1.6 mil. Apr Cash lose of $1.5 mil. Total cash lose of $8.7 mil. Your Friend, Michael