[mod.ai] Spang Robinson Report, March 1986

E1AR0002@SMUVM1.BITNET (03/14/86)

Summary of The Spang Robinson Report Volume 2, Number 3, March 1986

Discussion of the prospectus' of Teknowledge and Intellicorp, two AI
corporations that have recently gone public:

Teknowledge has recorded losses for each year of operation through
the fiscal year ending June 30, 1985.  As of December 31, 1985,
Teknowledge had an accumulated deficit of $9,173,100.  It has licensed
its systems to over 175 customers.  The tangible book value of Teknowledge
was $15,633,600 as of December 31, 1985.  Teknowledge revenues for 1985
was $7,316,600 in 1985 and $4,378,500 in fiscal 1984.  In 1985,
software services accounted for 45 percent of its revenue with products
and training providing 37 percent of the ratios.  As of December 31, 1985,
the company raised $24,976,000 from private sale of securities and had
$12.5 million in working capital.  Earnings of officers(including other
compensation such as commissions and housing allowances):
Frederick Hayes-Roth $195,402
JOhn W. Spencer, Vice President, Sales and Marketing $164,038
Lee M. Hecht, President, $141,700
Barry L. Plotkin, Vice President and General Manager of Knowledge
Engineering Services, $116,250
Earl D. Sacerdoti, Vice President and General Manager of Knowledge
Engineering Products and Training: $107,800

Intellicorp has reported a substantial loss for 1985, although it has
reported profits in most recent three quarters.  They delivered 425
KEE systems to 100 customers.  It received from Sperry Corporation
22 percent  and 21 percent of its revenues in fiscal 1985 and the
first quarter of fiscal 1986.  Intellicorp has fluctuated between $3.5 dollars
per share and $13.75 per share.  Intellicorp runs BIONET in a cooperative
agreement with National Institutes of Health.  They also offer a
package of ten software programs in the area of genetic engineering
research.  There is a company called "Kee Incorporated" which advised
Intellicorp of a possible trademark infringement of the company's name.

Salaries:

Ralph Kromer, $115,000
Thomas P. Kehler, Executive Vice president, manager of Knowledge Systems
Divison, $110,000
kenneth Hass, Vice President, General Counsel and Secretary $75,625
Carrol Gallivan, Vice President, Marketing $100,000.

__________________________________________________________________________

Article on the Dreyfus affair regarding the article that appeared in
the January 1986 issue of Technology Review.

__________________________________________________________________________
Discussion of the Expert Forecaster, PC product that brings the power
of Box-Jenkins forecasting systems to the PC.

__________________________________________________________________________
Discussion of Japanese AI:  (Dollar Amounts based on a recent exchange
rate)

MITI is requesting funding of $25 million for basic computer R&D of which
most is earmarked for ICOT.  This is 6 percent less than the amount
allocated to ICOT in the current budget.

Japan's Science and Technology Agency is requesting approximately
$43.4 million for computer research.  Projects that are continuing
is a project on developing technologies to elucidate brain function,
a survey of knowledge-based systems for assisting in the design of
chemical substances, further research on a Japanese-English, English-Japanese
translation system.  This system is now in operation at the Japan
Information Center of Science and Technology.  STA is requesting
$665,000 for efforts to enlarge the dictionary and to improve the
translation system.  They are asking $41.5 million
from the Japan Atomic Energy Research Institute to continue its R&D on
an expert system for safety diagnosis in nuclear power plants.

The Japanese Ministry of Agriculture, Forestry and Fisheries is asking $720,00
for a project which aims at developing expert systems for use in
agriculture.

The Ministry of Labor is requesting money for CAI software for job
training.

NEC will develop and market four expert systems for control of large
general purpose computer systems.  This is the first time that applications
as opposed to AI tools have been marketed in Japan.  These systems will
be used for computer performance analysis, network failure analysis, database
design and JCL creation and checking.

__________________________________________________________________________

News:

IBM will be distributing Golden Common Lisp.  Golden Common Lisp has over
5000 users.

TI has donated seven Explorers to UT Austin.  UT Austin bought six Explorers.
Texas A&M bought eight Explorer work stations.

Silogic announced the availability of Knowledge Workbench for 68000
supermicrocomputers.  It has a natural language processor, an expert
system shell and an enhanced Prolog environment.  It also has a database
interface that allows the system to be used on top of relational databases.
Lathan Process Corporaiton is using the system to develop an expert
advisor to floor supervisors.  It costs $8500.00 without the natural
language processor and $21000.00 with it.

Microsoft announced the latest update of muLisp.  It is three times
faster than its competitors and allows the development of programs
up to 8000 lines long.

Intellisource introduced IntelliWare Platinum Label accounting system
which integrates an expert system with a natural language menu
system.  It is based on TI's NaturalLink software.

ICAD, Inc. is creating a system to allow engineers to capture their
standards for design and increase the accuracy of their solutions.
Also Symbolics will announce a smaller AI computer which will cost about
$35,000.

Speech Systems Incorporated has a demonstrable technology to convert
speech into text.  They are currently selling stuff to OEMs for
integration into their products

__________________________________________________________________________
New Bindings

Cornelius Willis is Director of Marketing for Level Five Research which
created Insight 1 and 2.  He was formerly at Human Edge Software Corporation
of Palo Alto, CA

Quintus Computer Systems has appointed Doug Degroot, VP of Research and
Development

Teknowledge has named Robert Simon Southern Regional Sales Manager

Speech Systems Incorporated has named Edward Feigenbaum
Advisor to the President