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Skip, from TPRO's 10Q on March 31, 1997: "In the course of the past six months, the Company has experienced severe cash flow issues, primarily as a result of the rapid growth of a semiconductor fabrication facility expansion project undertaken for IBM/Toshiba, through Marshall Hyman Construction. The project has more than doubled in size from its inception as a result of scope increases and massive functional requirement changes. The invoice processing system employed by the customer was inadequate to the task of keeping up with the changes they were directing. As a result,the Company has had significant and disproportionate cash tied up in accounts receivable, retention and change order processing on this one project and management would be forced to delay payment of its accounts to preserve maximum possible liquidity.. The Company has had to repeatedly force the issue of improved invoice processing with the customer's management. As of May 15, 1997, management believes that the invoice and change order processing beginning to accelerate to an appropriate level. The Company expects cash in the amount of approximately $2,250,000 to be released from this project in the next two months. Against this, the Company has approximately $500,000 of obligations related to this project. Should this cash not be released as forecast, the Company's working capital would continue to be effected." So what have they done to alleviate this problem since March? They say things have begun to normalize as of May, but do you know of further evidence of this? |
