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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation
IAIC 4.280+12.3%Dec 16 4:00 PM EST
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To: RikRichter who wrote (1360)3/29/1998 1:00:00 PM
From: Matthew F. Kern   of 2011
 
Elliot:
My last response to this was eradicated without comment again.

Based on our data that IAIC when remediating directly makes an average of $0.15 per line from UNICAST per line charges excluding labor (assuming they charge themselves, on the books, what they charge CA) plus labor costs and profit on labor:

The 400 million line per year factory would result in about $100 million revenue (this might be low), again labor is a large component of Y2K services cost.

Say margins are 20%+,on per line fee and 15% on labor and assume that per line charges go up. The last news then is very bullish from a risk reduction and short term ramp up perspective. I would remain vigilant waiting for others to build Y2K factories based on IAIC tools, to assure that IAIC central sales and factories do not become a bottleneck.

Such an expansion can provide other services after 2000, and I assume that the momentum and labor available and excess capacity will result in other non-Y2K contracts as these expire. This is what happens at all Professional Services software contractors. I would take this news as a good sign for long term growth.

..............Matt
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