Karl, I think we don't know the value of the CD
I agree with your assertion regarding the limits of what can be done with a limited labor force. From my first investment in this company I never doubted the size of the market for Y2K remediation but worried as to how this company could possibly ramp up to meet the demand. My answer now is that they will sell the tool and the blueprint for a small amount (10,000 to 20,000 is nothing) to many companies who will provide their own labor. Fluor and Square-D and Wonderware will be the extended sales force. See highlights below.
Think about how "popcorn pops" slowly at first, a few kernels, then rapidly accelerating. I think it was an apt analogy from the last conference call.
As for the last 90 posts, boy are you guys gonna get it when mom (CK) gets home!! I'm gonna tell!!
Zebra
From the form 10KSB of 10-27-97
The PlantY2KOne-TM- product suite includes a methodology designed specifically to address the manufacturing and process floor environment, an inventory and compliance database that includes vendor information for commonly used factory automation hardware and software components and search engines that locate date related code in application programs.
The methodology includes assessment, analysis, planning and remediation phases. The process begins with an assessment in which the overall project is definedand organized. An inventory of all process control hardware and software is then completed. In the analysis phase, that inventory is examined, component by component, with the Company's database of vendor year 2000 compliance statements and custom code is analyzed with its search engines to reveal date usage. The conversion planning stage addresses the results of the analysis to develop a plan for bringing the client's system into year 2000 compliance. The final stage is to execute the remediation plan.
The Company supplies either "end to end" consulting services built upon the methodology and use of the database and tools, or it will sell the methodology, tools and database access, packaged on CD ROM supported by internet access to the client for self execution. The CD ROM version of the product is in late stage development and is expected to be available to market in October 1997.
During the first 60 days after introduction, the Company received more than a dozen engagements for its Y2KOne-TM- services. In addition, the Company has received more than 10 requests for proposals for multi-plant engagements. Though only in its early stages of these engagements, which makes forecasting difficult, the Company believes its Y2KOne-TM- product and services hold significant near-term commercial opportunity. To properly support that opportunity, the Company will have to add significant staff, perhaps as many as 150 engineers. Further, it will have to make additional investment in product development.
Management believes that its pursuit of year 2000 business opportunities will have long-term effects on its operations. In addition to the near-term effect of increased revenues and improved margins, the Company expects that these efforts will expand its client base for its core business of system integration.
Subsequent to June 30, 1997, the Company signed preliminary distribution agreements with major automation hardware and software suppliers, including Wonderware, Inc. and Square D Company, a division of Groupe Schneider, and is developing a strategic alliance agreement with Fluor Daniel, Inc. that will include marketing its products and services to Fluor Daniel customers. |
