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Andrew HeiskellAndrew Heiskell
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that we had excess capacity in our computers set up in Chicago, and one of our people invented this idea. And it seemed like a good idea. But somebody else appeared to have invented the same idea at the same time, and every time we priced our product to the customer, this other guy would price it lower. And we couldn't figure out how he was doing this. And year after year SAMI would loose money. And the board would get more and more irritated because the only thing a board really looks at is the thing that's loosing money. Well, at the end of six years suddenly this competitor, whose name is forgotten by me and will be forgotten by everybody--it turned out it was capitalizing all of its expenses and that was how they undercut us on pricing. And, of course, when that came out they went belly up, and SAMI suddenly became an enormous success and for years ran at or had margins of 25-30%, which are very nice-margins.

Q:

But SAMI--what part of the kind of the overall strategy of the corporation did SAMI fit into?

Heiskell:

None. Absolutely--

Q:

What was the end of SAMI?

Heiskell:

Well, it's gone on expanding and expanding, and I think recently has been--they acquired other allied entities-- [end of side two of tape one; beginning of side one, tape two]

Q:

Today is the 4th of February, 1986. This is Jessica Holland with





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