Cincinnati Electronics, which signed six major accounts in 1981 and 1982, faces serious difficulties following a determination that much of the software believed to be in the final stages of development does not exist. The company has offered to release its customers from their contracts. In at least one case, the customer also insisted on--and got--some consideration for the time and expense its staff had committed to getting ready for the CE system. A majority of the customers are expected to accept the CE offer and start over. CE and its customers are very reluctant to talk about the matter because there are potentially significant legal implications.
At least one account appears to be prepared to "stick it out." Their view being that CE could provide circulation control in the same or less time than that required for the library to undertake a new round of bidding to procure an alternative system. CE may reenter the turnkey market if it is able to work through the problems and deliver an acceptable circulation control system during the first half of 1983. The response to the circulation control system would determine whether other modules might be developed. [Contact: Cincinnati Electronics, 2630 Glendale-Milford Road, Cincinnati, OH 45241, (513) 563-6000.]