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- Many of you are aware that DPI, along with many, many Bay Area companies,
has gone through a most difficult period of the Nation's economy with the demand for our products dropping to minimum levels. This drop in business,
which started more than a year ago, necessitated an almost complete halt to our production activities.
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- The strength of our basic product line, supplemented by the introduction of new processor options and a new line of terminals, has brought about a
very positive resurgence in our business. The fourth quarter of this year promises to be the first profitable quarter of the year and, in fact, the first profitable quarter since the October-November-December quarter of 1969.
The achievement of a revenue level of $3 to $3. 5 million for this quarter will insure that the year ending June 30 meets necessary performance criteria. To achieve the $3 to $3.5 million level and to insure the shipment of goods
necessary to provide adequate revenue levels in July and early August, it has been necessary for everyone to work long hours and an extended work week. All of us are deeply appreciative of the enthusiastic and productive response
that has been demonstrated by all of DPI's employee family. Without your dedication and cooperation, we can not achieve our goals which are essential to the Company 's continuing growth.
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- A few weeks ago, I had the pleasure of announcing to many of you the Company's continuing discussions with two possible acquisition candidates. Neither
of the situations that I discussed that day has been completely resolved. It appears that there is little likelihood of the CPC merger with DPI taking
place in the near term. Their company, which is public, enjoyed a spurt in market price which caused them to require a higher percentage ownership in
the resultant operation that would have been formed by the amalgamation of CPC and DPI. The Management of DPI felt that this percentage was unreasonable
and not in the best interest of DPI's shareholders, investors and employees. Discussions on the second merger are continuing and we have high hopes that
it can be consummated. Whether or not these mergers, or any others, are completed at some time in the future provide this Company with no less an oppertunity
for the achievement of outstanding results and performance. Any merger that is proposed or achieved will only be made on a basis that enhances our product
lines and increases the fundemental soundness of DPI as a continuing corporation.
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- If the business our Marketing force has currently under negotiation is
closed, as we believe it will be, the Company will continue to grow. Management feels that this growth will not, however, requires the indefinite continuance
of the long day, extended work week currently in use. we anticipate returning to more normal hours early in July. As a further benefit to our employees,
I am pleased to announce that we will close the plant at the end of the work day on Friday, July 2 so that all employees can enjoy a four day July 4th
holiday of Saturday, Sunday, Monday and Tuesday.
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- On behalf of all Management, please understand that we are sincerely appreciative of the efforts of every single employee of DPI and DPIS.
(Note: DPI Systems was the DPI leasing company we had set up)
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