Hi Steven,
First, let me say that I know that Scott Guffey monitors this thread.
I've recently sent him an e-mail inquiring about some of the clients
that were not mentioned during the conference call. When he replies
I would not be surprised if he also comments on your questions.
But in the mean time, I'll take a crack at answering some of your
questions:
I think the single largest factor delaying a return to profitability
is under-use of capacity. The company currently has over 3,300 work-
stations. I remember COO Robert Allen saying in an earlier conference
call that they are capable of doing more than $30,000 per workstation
in revenue. This tells me that they have fixed costs in capacity to
accomodate revenues over $100 million, but are doing less than $90
million annually.
I don't know when they lost the Transamerica account, or when they
learned that the Bell Atlantic contract would be delayed for a quarter,
but I'll guess that they had set aside a fair chunk of workstations
for those two contracts for the 3/31/98 quarter.
Regarding the reduction of workstations in the Dallas area, I don't
think that the company is able to be more specific than they were in
the conference call. I will be pleased in mid-May if they announce
another one in the Southwest, and tentative plans for more in subsequent
quarters.
I don't really want ATCT to consume time putting together a monthly
newsletter. There is plenty of information available through conference
calls, SEC filings, this thread, and other message boards. Plus (and
Scott, if you're reading this, don't get a swelled head!), inquiries
to the company's IR department are answered promptly, politely, and
give as much information as senior management will allow to be released. When I first started to follow this company in the fall of
1996 they didn't even have an IR department!
As to the shareholders meeting, specifics about financing, and a list
of contracts, I would not expect much from the company.
I'm going to copy your post into an e-mail to Mr. Guffey, and I'll
post his response.
Phil |
