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Technology Stocks : Looking for info on IMNT

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To: Doug who wrote (396)	4/6/1998 10:15:00 AM
From: Rick Smith	Read Replies (2) of 484

I was on the conference call Friday morning. The two contracts in question were not signed as expected because the hospitals decided to put it off for a quarter. The financing was in place and when those papers are signed and the company begins receiving money from a contract they recognize the revenue at that time. These are not lost contracts, only postponed. Who knows what the reasons were for the hospitals boards to postpone? IMNT says they were waiting on all of their (hospitals) IT initiatives to evaluate the costs involved. This contract unfortunately got caught up in their decision. IMNT remains the vendor of choice, which means that the decision has been made to use them, but they were going to wait a little longer. Maybe the hospitals didn't want the expense in their own quarter and wanted to show it later for some reason. Who Knows?? But the bottom line is that the two missed contracts torpedoed the quarter. On the brighter side. The backlog continues to increase, which means that they are increasing the amount of business they do each quarter, even with those missing two contracts. The growth remains steady! Company said that the fundamentals were still exceptionally strong and that they were adding 10 to 12 more sales people over the next three months because the opportunities for the company continue to grow daily and the current sales people couldn't currently cover the potential clients. Clearly a positive. IMNT also said that the medical imaging market is very large and that IMNT has currently got a very small market penetration, even though it is the industry leader. During the Q&A Gruntal: Any other info on those lost contracts? Riordin (CEO): Combined they amount to about $5 mill. The board members at the hospitals were looking at all of the hospitals IS initiatives. IMNT is the vendor of choice in each one as I explained, but they just haven't closed yet. We hope to have them closed for the current quarter. Punk Ziegel: Any update on HBOC? Riordin: We continue to have a very strong relationship and the projects at the VAH's are going very very well. Leyland: Backlogs? Credit Facilities? Total Sales reps? 4th Quarter? Riordin: $59 mil backlog has increased to $63 million. Credit facilities relationships are very strong. Will have 40 sales reps after new hires. 4th Quarter numbers should be good and I'm comfortable with estimates. Morgan Keegan: Any problems with execution of contracts from backlog? Riordin: Backlog is being rolled out timely and on schedule. Fundamentals of industry are very strong! Consolidation will heat up in industry. Sales will continue to increase and that's why we are adding new sales reps. We also continue to make technological advancements that keep us ahead. All in all the news was good with the obvious exception of the delayed contracts and resulting shortfall for the quarter. Riordin did say that the testing and everything else was done on the delayed contracts and that the financing was in place. All they had to do was sign and or whatever reason they said they wanted to wait. My notes are a little jumbled and I'm sure I didn't write something down that one of you will want to know, but this is the gist of it, and there was NO other bad news. I was sure to record all of that correctly! Sorry I didn't have time to post this on Friday but after the call, I had to leave for an appointment. Good Luck to All. R..

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