You are correct on both counts, the warrant conversion did raise that much cash and the debt-equity swap was made also.
However, as I'm sure you are aware, the debt-equity swap raised no cash. And in a company who's total employment is probably somewhere around 500 to 1000 people, four million in the bank doesn't last very long.
Also, just take the fact that wonderware has 20,000 clients and TPRO has 4,000. Let's say that 75% need no Y2K work at all (ridiculous, but stay with me) that leaves 6,000 clients. And TPRO has maybe 300 engineers. That is 20 projects per engineer that should be completed in the next 13 months, (to give 1999 for testing the fixes). Even if the plants would do it all with their own employees using PlantY2KOne, this is a Stygian task. They will still need support for the software coming from humans. (Actually this is where I see the TPRO employees working, not all at plant sites, but at PC's helping customers' employees with the software.)
TPRO is not going to do anywhere near the whole job needed. And who else is out there to do it?
But if the TPRO folks and the CD are as good as they seem to be, they are going to do a huge chunk of the plant remediation work and I think that will take much more cash to hire and train people than they have in the bank currently. Just saying I would be surprised if that is not addressed Friday. I only hope for many peoples sake, they can ramp up fast enough.
Rising bottoms in the channel, I feel very good about the next couple of weeks.
Zebra |
