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Technology Stocks : ARC (ALRC)-A revamped and transformed web-centric IT company -- Ignore unavailable to you. Want to Upgrade?

To: WhatsUpWithThat who wrote (33)	6/13/2000 8:13:00 AM
From: Tom Hua	Read Replies (1) \| Respond to of 87

WUWT, please feel free to raise any questions you have, the point of having a discussion here is to help each other understand the company better. Gross margins. GMs were terrible in previous quarters because the old model just didn't adapt to the changing environment, the good news is GMs have been improving and on the rise weekly. The corrective actions taken to improve margins include: - Eliminate hundreds of small accounts. These small account were a drag on margins. Many of these accounts were grossing bill/pay of just 1.2, with 20% benefits paid to the consultants, that left nothing to cover GSA. The result was a net loss. - Realign sales and recruiting function. Instead of having 52 branch managers working with 115 recruiters, now the branch manager layer is removed. The 52 branch managers no longer exist. Maria Boyse, the new VP for Recruiting and Retention at headquarter works directly and the 3 regional recruiting center directors(Chicago, Philly, and Denver) to direct the 115 recruiters. - Weekly dashboard metrics. The weekly dashboard metrics which were instituted by Vic Fricas, the new VP for Field Operations, allows management to monitor margins effectively, and let management take corrective actions in a timely manner. - Renegotiate for high margin contracts with HP, Agilent and other clients. Because of much better customer satisfaction of the performance and product delivery, ARC is now able to negotiate for higher margins. These are just some of the new changes that have resulted in improving margins. Margins should be higher beginning Q3. Accounts Receivables. ARC's DSO is comparable to other competitors in the industry. AR is actually coming down Regards, Tom