To:
From:Subject:
Len
Fassler
Joe
MagnoCatchUpandUpdate
Memorandum
GOVERNMENT
EXHIBIT
GT
-18
Date:
July
13,2000
Knowing
how
busyyou
have
beenIthoughtthataquick
memo
wouldbehelpfultoletyouknow
what's
happening.Micro
Knowledge
KateandBeth
aredoing
well.Iamspending
some
timewiththem
and
working
on
some
salesandmarketingissues.Theyhave
compl
etedthefinancialsandaredone
budg
etfor
2000
thatmodifies
Beth's
original.Whenyou
come
upn
ext
they
arepreparedtoreviewitwith
you
.Other
News
andIssues:•Wearcfinalizingadealwith
Gateway
thatwillprovide
Gateway
syst
ems
at
30%
below
retailand
under
cost(topmachinesleasedat
$
t
9.00permonthfor2years).Thisagreementalso
gives
MicroKnow
l
edg
etherighttousc
any
of
the250GatewayCountryStoresTraining
facilitiestodelivertrainingand
give
sclientsdiscountsonGatewayproducts.•Theyarestilllookingforspaceandhavea
number
of
veryattractiveprospectivesites.•
The
processofre-engineeringtheirin-housesystemsand
websit
ehasbegun
and
tbeplanwillbe
done
inthenextf
ew
weeks.
When
completed
schedulingandanalysisofclassandtrainer
utilizationsh
ould
begreatlyimproved.•Weareindiscussionwith
CMA
tocrosssell
Oracle
TrainingandMKofferings.•Weare
speaking
withthefi
rm
thatrepresentsOracle,S.
Gateway
andothersatthe
State
(lobbyist/consultants)tofeed
MK
businessonacontingencybasis.Thiswouldincreasesales
activityandallowBethto
assume
therole
of
ChiefLearningOfficer
(e
LO)
tofocusonsellinghig
he
rleveldeaJs.
AcquisitionIssues:
•I
continue
tospeak
with
Tom
Murphy
regularlyand
have
helpedhimwithStatecontractissues,etc.
In
timewewillbeable
La
continue
discussions
(when
youareready).•Ihavemet
with
a
company
in
Plymouth
MA,
SpectrumLearning,and
have
broughtthemto
meet
withKateandBeth.
They
are
doingabout
$2million
and
aresimilartoMKwith
some
differenceinmarketingstrategy.
r
wouldlike
for
youto
meet
them.
They
canbeacquiredatareasonablepriceand
are
profitable.
Murphy
introducedusafewmonthsago.•WevisitedEleroentKin
Rochesterand
theyarelookingtoselltheirtrainingfacility.It
does
$7
million
andaccordingtothembrings$2milliontothebottomline.Theyhave
otherstuff
(seebelow).
05402
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