Scott, here is the press release on MLU Y2000
Press Release
Millennium Communications Inc. acquires exclusive rights to Year 2000 software!
TORONTO, Ontario - March 11, 1997
MILLENNIUM COMMUNICATIONS INC.: ASE:MLU ("Millennium) Millennium is pleased to announce that it has acquired exclusive rights to the Canadian marketplace for the "Year 2000 Problem" software, developed by Century Technology Services, Inc.
The Year 2000 problem will affect nearly all software that tracks date sensitive financial information. Some industries affected will be banking, insurance, government, and accounting. This software, known as CTSI 2000, performs the Year 2000 conversion for mainframe, midrange and other systems, regardless of computer language, in less than half the time of other conversion services. The process is less disruptive to the current operating environment, requires a smaller programming commitment, and significantly reduces overall conversion and testing costs.
The Year 2000 problem occurs when the computer attempts to process "00" in the years field. The systems thinks the "00" is 1900, not 2000, and malfunctions. This problem creates erroneous calculations and computer crashes. CTSI 2000 converts the computer systems so that they can process dates correctly into the next century. Consideration for the license is $500,000 Cdn plus a royalty of $0.07 per line of code. The average mainframe computer has twelve million lines of code contained in 8000 programs.
According to the Gartner Group of Stamford, Connecticut the Year 2000 conversion market is estimated to be worth between $400 and $600 billion USD over the next three years.
For further information please contact :
Investor Relations
Millennium Communications Inc.
416-203-2001
www.solutions2001.com
or
Donna-Marie Anton, VP Marketing
Millennium Communications Inc.
416-203-2001
My Comments
Using the figures from the press release, the Canadian market is $40-$60 billion. If MLU only gets 1% of this market, this translates to $400-$600 million in revenues and, assuming the royalty payout is half of that amount, leaves MLU with incremental earnings of $200-$300 million. Not bad for an upstart company that only has about 25.7 million shares outstanding and closed on 3/21 at $1.18. This is only part of their busines...I think this company has the potential to be a real winner. |
