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Technology Stocks : iGATE(IGTE) -- Ignore unavailable to you. Want to Upgrade?

To: Toni Wheeler who wrote (333)	7/27/1999 3:37:00 PM
From: Joseph Strohsahl	Respond to of 380

Conference Call From Yahoo bb: I just listened to a little bit of the Mastech Q2 conference call before I had to run. Here are some details I picked up (very candidly): 31% Top Line growth missed some analysts estimates, but management is not worried. Some of the reasons for this slower-than-expected sales growth had to do with Y2K projects ending too soon (as Y2K is now only 6% of revenues), and EDS revenues decreasing (EDS is less than 10% of revenues). Mastech plans to pull itself away from giant behemoths like EDS to focus on the end user. They expect EDS as a percentage of sales to further decrease in the future. A large focus was put on cost cutting. G&A expenses decreased by 4 million dollars. Mastech fired about 140 people this quarter because these people primarily worked on Y2K, and their projects ended early. No one from offshore services was fired. The revenue streams look like this - High Value: 48% (wow.) International: 28.5% US: 23.5% The new clients Mastech signed include - Siemens, BancBoston, Chrystler, UPS (for offshore work), as well as around 500 others, a record number of contracts in a quarter. They became one of GE's primary consultants (one of three). They are also working on a deal with an online brokerage. That deal is valued at 2 million. ROE is now at 26.5, and ROA is at 19.4, both showing substantial increase from previous quarters. Cash and investments increased 7%, operating cash flow was strong. All margins grew. Considering the concerns amongst the players in the industry, this has been a pretty solid quarter for Mastech, although not stunning in terms of growth. Management seems satisfied, but management is always satisfied and optimistic. Management said to expect more exciting news about new deals being signed and new partnerships being formed.