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Technology Stocks : Information Architects (IARC): E-Commerce & EIP

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To: SE who wrote (5616)	4/12/1998 12:38:00 PM
From: JDN	Read Replies (1) of 10786

Dear Scott and Pancho: Regarding your questions. 1. Percentage of Completion method is preferable method when the contract is expected ot exceed the accounting cycle duration (1 year) Thus you should look at this change as indicative that ALYD has very large contracts. 2. Accounts receivable rising dramatically as company is now getting into substantial work compared to earlier quarters. Thats the good news. The bad news is that if business continues to grow dramatically there MAY be a question as to adequacy of working capital to fund the expansion. Dont know the answer to that. JDN

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