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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation
IAIC 4.280+12.3%Dec 16 4:00 PM EST

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To: CalculatedRisk who wrote (1225)1/17/1998 3:43:00 PM
From: RikRichter  Read Replies (1) of 2011
 
Bill,

WRT software capitalization costs, you are making some major assumptions that:

1) All Y2K work ends on January 1, 2000. I have heard some experts say (Roger McNamee of Integral Capital Partners for one) that there will be Y2K remediation work to the Year 2010! He stated this in a New Year's Day CNN Moneyline interview. So I strongly disagree with your statement that capitalized software costs for Y2K companies only have a useful life of less than two years.

2) In the case of IAIC, their enhancements for UNICAST were NOT solely for Y2K. UNICAST was also modified and enhanced for the purpose of platform and language migration which is the centerpiece of their post-Y2K strategy. Thus, in IAIC's case, UNICAST has a far LONGER useful life than two years.

One thing all investors (long or short) in IAIC can agree on is that 1998 will be THE year to show the Y2K investing public how valuable their UNICAST product is!

I remain ver-r-ry long on IAIC!

Regards.

Elliot

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