IMRS racking up y2k contracts. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IMRS racking up y2k contracts.

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LANDRUSH who wrote (2078)	1/22/1998 10:26:00 AM
From: Rich Dee	Read Replies (2) of 3162

Yesterday I found a couple of analyst reports on First Call. This must have been what your broker was talking about. Furman Selz reported that they had recently toured IMRS's facility in Bangalore, India. Here's part of what they said: Enough Capacity to Potentially Double Throughput The Bangalore facility (with room for approximately 750 billable consultants) is the largest of IMRS's three India-based factories and is currently operating near peak capacity. The other two India facilities are Bombay (peak capacity of 450 seats) and New Delhi (peak capacity 500 seats). With Bombay currently utilizing approximately 150 seats and New Delhi utilizing less than 50 seats, we estimate that IMRS currently has enough capacity to double its headcount. This is a key consideration for prospective clients trying to gauge a vendor's ability to dedicate resources and complete projects on time. Stock Option Plan Should Help Contain Turnover The company has begun awarding its programmers with stock options (with a 5-year vesting period) on IMRS shares, a relatively new form of incentive compensation in India. Employee attrition from IMR-India typically occurs as entry-level programmers ramp up the learning curve and then migrate to the U.S. where they seek out higher paying positions. While the company is experiencing low turnover rates (around 17-19%, versus the industry average of 25-30%), the stock option program should create a greater incentive for programmers to stay. In addition, here are a few things from a report issued by Montgomery Securities: The company continues to build capacity in Bombay as the Michelin contract gains momentum, and the company has begun to lay the foundation for establishing a presence in Delhi.....the company continues to successfully recruit people for its new facility in Northern Ireland. Headcount in Ireland now exceeds 100 consultants, which is up from approximately 55 at the end of September. We currently project 45% EPS growth in 1998, although current business trends continue to suggest there is significant potential upside to our 1998 estimate. Montgomery estimates $0.15 EPS for the fourth quarter of 1997 (and $0.48 for the year) from revenues of $25.5 million. Their EPS estimate for 1998 is $0.70. Hope that these are blown away!!! Rich 708 days!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next