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Technology Stocks : Information Architects (IARC): E-Commerce & EIP

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To: David C Mapes who wrote (1737)8/10/1997 10:21:00 AM
From: Richard Haugland   of 10786
 
The Edgar report clarifies the concern I expressed in my post 1725. The expected revenues of ALYD are $10,000,000 in the fourth QUARTER of the year. The Business Journal article was not clear as to what period the revenues represented. Given a level of profit of 5-10%, that would still represent only about 3-6 cents for the quarter (based on 15,000,000 shares outstanding) and undoubtedly negative for the whole year.

The report reiterates that in the last (Q2) quarter (not yet reported) ALYD will report a loss (when they finally report!) and restates the prediction of the article that ALYD will be (was?) profitable in July. With the SEC filing made on August 7, the company better meet that profitability status estimate.

Of course, financial analysis based on current statistics seems to have little to do with the price of ALYD's stock.

Given the mix of talents required and the high cost of software engineers and assuming that ALYD has AT LEAST the 250 people already hired, of whom ?% are software engineers, what is the labor cost likely to be during the fourth quarter? Especially, how many software people will they likely have on staff and how much do they typically get paid?
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