To: REW who wrote (29631 ) 6/1/1999 12:42:00 PM From: REW Read Replies (8) | Respond to of 44908
***CONVERSATION WITH GORDON**** I spoke to Robert Gordon for about 20 minutes from about 10:30. This is what I was told according to the best of my recollections. TSIG will be going through a transition back to the core business plan that was the reason most of us invested in. The Card business will be again getting the primary input of all efforts the company can muster. Gordon says he is excited with the changes that will be taking place as the focus will allow the forecasted earnings breakeven point to likely stay intact. The overhead will be cut by over $150,000 through this transition as the online web development and design aspect of the business will be terminated and personnel changes will take place. The functions necessary for the operation of TSIG's needs will be done from the home office. The desire of key personnel to drop the card business, which surfaced in earnest about 2 months ago, in favor of going strictly into the other phase has created the need for these changes as the company cannot afford to stop 1 1/2 years of development toward the card business which is about to pay off and start into another field against the substantial competition being offered in the web design arena. The employees leaving the company are going to be those that wanted the company to totally change the focus and have the company start over in the other area. He says the departing employees will finish some existing projects before leaving and the transition should be over the next few weeks. Again, he stated with the difference in philosophy between himself and management these changes became necessary. He could not see dropping 100 million in revenues that are anticipated to come in by the end of the year to completely change the direction of the company. Staying on track is to be the focus to accomplish what is in place and what has been worked on for the last 1 1/2 years. There is funding scheduled to come in addition to what has already been announced and due to be received starting this week. The rest should be in hand by the end of next month. This with what has already been committed to should be enough to fund TSIG until the revenues take over. The business signed and contracted with others to come are to be developed and will be concentrated on to create the revenues necessary for this end. He brought up the desire to have a conference call to allow him to speak to the shareholders. He wants me to call him back tomorrow afternoon to see when the timing can be put in place. He wants to do it within the next week or so. I will follow up on this and let the shareholders know through this medium. He did say initially in our conversation he had received a call from someone representing himself to be close to Marty and was told that I am paid to manipulate the stock. We then continued with our conversation. Gordon is excited about developing the Signature, Lifetime Learning, TEMPO, Babe Ruth, 4-H, distributors, and getting as many of the other approximately 20 accounts in the pipeline completed as quickly as possible. There have already been over 400 schools that have called to commit to the Lifetime project. Lifetime told him this was probably the best initial response to any of their other projects. This gives a premature indication that this will be a very successful campaign. I neglected to bring up Marty's appointment to the board as I didn't have time to mention it and RG didn't bring it up either. We were talking of these other matters. I am left with the assumption he refused but confirmation still has to be made. I would have thought on reflection it would have come into the conversation if he had accepted. From the best of my recollections, Bob