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Technology Stocks : Peritus Software Services (PTUS)
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To: Michael Tedder who wrote (1344)6/7/1998 11:44:00 AM
From: Big Dog  Read Replies (2) of 1960
 
Dear Michael: You stated that "The Telco is AT&T [which has turned to PTUS for Y2K remediation] and they will not allow their name to be released in the popular press."

I have two questions. First, will PTUS simply be licensing its Y2K tools to AT&T with the telco's own staff doing the work or will PTUS be providing full remediation and testing services? As you know, "Licensing" has higher profit margins than "Other Services" work (e.g., full remediation services falls within this category). And, if the contract calls for full remediation services work, it would seem to me that the contract is so large that PTUS would be fully occupied through the end of the current millennium. Second, in Business Week (June 15,1998) there is a snippet about 14,000 AT&T managers taking advantage of a voluntary early retirement program. Is PTUS discussing the possibility of "Outsourcing" work (i.e., non-Y2K work focusing on IT productivity improvements)?
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