Ty,
I was able to hear the CC live and IMO it was VERY BULLISH!
Did you hear about the blue chip institutional analysts who asked questions at the end? Paine Webber, Cruttenden Roth, Wheat First Union, Morgan Keegan, Newby & Co., Elliot Winter ;-)) Matt, where were you?
My question concerned IAIC's Post-Y2K Strategy which has been extensively detailed in the latest 10-K report but not in any news releases. Sandy responded that conversion work will start when Y2K work is finished. He sees a tremendous backlog of non-Y2K opportunities and IAIC's factory partners are excited. He said that the same processes are applied for language conversions as they are for Y2K remediation.
Here are my TOP TEN LIST of things that I heard during today's CC:
1. CHASE MANHATTAN was identified as the 'large US bank' that is using UNICAST/2000 for its Y2K remediation work. Chase, along with Gulfstream Aerospace, will be on a Y2K panel of satisfied clients at a CA World '98 panel discussion concerning UNICAST/2000.
2. Beginning April 1st, CA has reorganized its 3,000 person salesforce and has DEDICATED 400 sales reps to sell ONLY CA's Y2K remediation software products including UNICAST. These 400 will be hawking CA's Y2K software ONLY. IAIC was very pleased with this new focus by CA.
3. Y2K order activity has picked up in April and many deals are expected to close in April. The quality of Y2K leads are improving and scores of leads are being referred by CA.
4. The Y2K market is just beginning to take off for automated tool vendors. IAIC has found that their clients are now getting funding for their Y2K projects.
5. IAIC has found that 80% of sales will be factory or service-related as opposed to companies/agencies doing their own fix internally using UNICAST/2000.
6. IAIC's factory capacity will be up to 400 million LOC annually. This EXCLUDES the capacity of its five outsourcing partners, ManTech, Pinkerton, CACI, Strategia and Software International.
7. IAIC added 30 people in Q1/98 and will be adding 30 to 40 more professionals in the next few quarters. There has been no problem adding staff and their retention rate is high.
8. Of the 17 Y2K remediation contracts on hand in their factory, 60% have potential for SIGNIFICANT follow-on business.
9. CA has provided 70% of the leads for IAIC's existing Y2K contracts.
10. Y2K contracts signed but not announced include work for an Israeli hospital, a brokerage firm, insurance companies, etc.
According to the press release today, the replay phone number for the CC is 703-925-2533, access code 826-097. Ty, I hope you have better luck with this.
Bring on CA World '98 ... IAIC continues to leverage the Fortune 1000 client base of CA! No other Y2K stock can make that claim.
Regards.
Elliot |
