Re: LOC per week
I went back and checked my notes because I remember hearing things a little differently. I also reread NJ Investor's notes on this thread to see his interpretation.
Here's what I think Bob was trying to say:
ALYD's major contract wins have increased their visibility which has increased the number of requests for proposals which has necessitated they add a slew of new salespeople and sales offices. This increased sales staff, in turn, is cultivating leads to the point where ALYD does one presentation in the morning and one presentation in the afternoon-- whereas they used to only do three total for the entire week.
The "code" reference was to what can best be described as the "ALYD Challenge". ALYD urges visiting companies to bring in a representative sample of "buggy" code. By the time the guests have finished the tour, ALYD has loaded the code, remediated it, and has it up and running! Whereas most companies only talk about what they can do, ALYD proves they can do it.
Bob also told the story about one company that tried to trick ALYD by bringing in already "fixed" code. They expected ALYD to pull the old car mechanic trick and tell them that the code needed a complete overhaul. Well, ALYD said they found one single error, which the client still thought was preposterous-- until ALYD proved there indeed was a problem! Needless to say, they won the contract.
BTW, when ALYD gets code it varies from contract to contract. I'm sure they'd love to have 10M lines at a time, but, as I've stated before, it's often a treasure hunt for companies to find all the necessary pieces and documention (if it exists). ALYD can then simply break the code into 1M line chunks themselves.
Lastly, as regards staffing, Bob stated at the conference that ALYD starts hiring additional staff when they reach 70% of capacity and, of course, they have work coming in to keep these guys busy. Worst case scenario, if we have a team size of five, earning the same $5000 per month each as the CEO, then each team costs ALYD $25K per month.
Now, if each team only did one chunk a month (1M lines -- the minimum size in ALYD's contracts), then, assuming a paltry 25 cents per line, that's still a whopping $250K gross, $225K net. Even factoring in rent, advertising, clerical staff, overhead, etc, that's still quite a hefty profit. Moral of the story: when you hear ALYD is adding staff, good news is not far behind. BTW, ALYD is adding more staff now!
- Jeff |
