To: Burt Roger who wrote (1354 ) 10/16/1998 1:33:00 PM From: Burt Roger Read Replies (1) | Respond to of 18366
Lanier's orders probably no less than 6-8 million per year. Reviewing the last 2 releases (initial paragraphs follow later in this posting) from NCI suggests the following to me. I was initially only seeing the $3 million as an annual contract. How quickly Lanier sells and delivers these products is the ultimate determinant of annual $ contract size. Back in January 1997 when the original press release mentioned multi-million contract with Lanier, it is now clear to me what this meant and means in 1998. NCI now has a 3 year contract with Lanier. Orders for product will be delivered to NCI from Lanier probably at specified intervals contingent on Lanier's customers need/demand etc. To deliver a large order of 2-3 million dollars probably requires a lead time of no less than 3 mos.. Based on recent strong AHIMA response Lanier saw fit to extend NCI's contract so that it could supply what customer's need through 2001. This allows NCI to do any revisions or new features throughout the three year production contract. If all orders are at a minimum of $ 3 million (not unusual to have fixed dollar amounts in manufacturing contract order placements) with a mix of products in each order, i.e., players with and without barcoders, docking stations, etc., the above figures of 6-8 million/yr. are attainable and could even exceed those numbers if Lanier's customer acceptance is high. Releases: SAN DIEGO, September 22, 1998---Norris Communications Inc. (OTC: NCII) today announced that it has received initial production orders from Lanier Worldwide, Inc. totaling three million dollars. The orders result from a January 1997 development and supply agreement whereby Norris has designed, developed and will supply Lanier's new digital voice recorder and computer docking station………… SAN DIEGO, October 13, 1998---Norris Communications Inc. (OTC: NCII) announced that Lanier Worldwide, Inc. has extended its multi-million dollar development and manufacturing agreement with the Company through December 2001………… I hope this helps to clarify the monetary significance of this order.