Zitel Shares Fall as MatriDigm Exec Quits

Fremont-based Zitel Corp. shares fell 36% as the president of key unit MatriDigm Corp. resigned. Shares in Zitel fell $9 to close at $16 on Nasdaq. Ken Titow, MatriDigm’s president and chief operating officer, is leaving the company, MatriDigm Chairman Bill Esping said. He wouldn’t provide any more details on Titow. MatriDigm, which develops software to fix the year 2000 computer problem, is 38%-owned by Zitel. Most computers read the year as a two-digit number, recording 1997 as “97.” Many computers could falter on Jan. 1, 2000, as they interpret the “00” in that date as the year 1900. Zitel shares had fallen 15% on Wednesday amid speculation about Titow and on fears that new products won’t hit the market as early as planned.