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To: C.K. Houston who wrote (6003)11/14/1997 4:50:00 PM
From: JDN  Respond to of 31646
 
Dear Cheryl: Thank you, I reread your URL. I still dont understand this. Obviously FLUOR will have many customers who NEED TPRO's expertise. Will not FLUOR guide them to TPRO rather than just ignore their problem? JDN



To: C.K. Houston who wrote (6003)11/14/1997 5:40:00 PM
From: Jack Zahran  Read Replies (1) | Respond to of 31646
 
Quick Notes from the Conference:

Pleased with Revenue increase in base businuss
-Engineers on Y2K would have added 700K - 1Mil
Resale of Materials causes fluctuations in Revenues mix.

Y2K Mix
60% Services
40% Materials

Gross Margin on Eng. Serv. 52%

Higher Expenses on Infastructure, distribution, and Sales and Marketing on Y2K product. $300,000 increase in S&M due to Y2K
G&A Expenses on traveling, expensive internal training, Recruiting

Conversions will save company $240,000 yearly.

Very strong Y2K activity.

$4 Mil working capital increase at the end of quarter and reduced liability by $5 Mil.

John Jenkins

Revenue & Gross Margin delayed for 15-20 engineers working on Y2K product. Many clients in Aug & Sept were aware of issues and TPRO showed up with a demostrable product made a big difference.

Continue to be successfull in base business. Last few weeks received $6 Mill in sales on base business.

Y2K interest continues to accelerate in an even sharper slope. Everywhere presented have received RFP or promised to receive one. No one turned them away. Cycle time from Presentation to Order: as short as two weeks. Happening very quickly. 41 Accounts, 3500+ Plant coverage. 80% of accounts are new to company. Expect to hold onto that access and leverage accounts after Y2K. Recruiting heavily on execution side and management. Flour Daniel hire adds significantly to our sales capability.

Press release mentions some accounts by name and their are more that have not been announced. Billing $160+/hr. Expectations are definetly happening. Numer of 20,000 CD going to Wonderware, which hasn' started yet. Lot of word of mouth and referrals from IT services companies. Companies coming to TPRO to complete their Y2K offering.

Q & A

q. Y2K 1Mil 1/2 in sales in last 2 weeks, will we see results soon.
a. Short term contracts, majority of revenues in next 90 days. We are definetly seeing pull back from third to second quarter. Margins will remain the same into remediation. For clients using tools, Tool activity higher margin and as services come in back to 50% margin range.
Base business is being attented to. Reality is that most people want to talk about Y2K issue. We are the game in town for the Y2K activity.

q. (Street Corp.) Requesting Performanc Bonds?
a. Certain base business bonding requirements, but we don't expect Y2K bonding.

q. (Investment Tech, small hedge fund) Rev. Expectations from CD?
a. Base 4K for CD, 5K for vendor compliance per seat, then 2K for reports per seat, etc...Total facilities 70K - 100K that need to address this problem...Conservative # of $20K per site still works. Trying to do better forecasting as more orders come in.
Targeting Mulit-plant sites. Wonderware alliance is getting 1 call/hour handed to TPRO as leads. Wonderware is emphasising the entire system, not just the Wonderware Software. Square D (IBM, Mars, Coke) marketing talks next week. Training others to resell to areas that TPRO doesn't cover.

q. Purpose of new hire? impact of AON alliance?
a. Develop relationships with other Y2K providers and formalizing the relationship. Driving the franchize model and his contacts in industry.
Aon relationship is expected to be a source of leads and that is already happening and we expect it to grow. Relationship is not exclusive. In the utility market their is yearly assessment that is done and those A&E (Architect and Engineering Form) coming to TPRO to provide them tools to do these risk abatements on their Yearly audits.
We have an ongoing dialogue with GM. We can provide them access to our database using their own Engineers. (GM is not yet a client but there is a dialogue).

q. Alliance w/ Pacificorp? Hymen Marshall News? Cash?
a. P. alliance is building momentum already worked on $700K project with them. Replaced P. with another expert to take advantage of Utility Y2K business. P. referred them to other to partner on Y2K oppurtunity.
MH is reviewing claim in Nov. and TPRO is taking steps to protect their interests in that situation.
Have 1 Mil cash and looking into means to expand that.

q. (RedChip) Breakdown on Y2K businees on current? Equipment margin on base? How many billable engineers and allocation?
a. Less than 100K. 10 - 15% margin on materials, but they look at the blended margin with services. 12 people added. 280 techs. Non Y2K projects are not tailing off yet. There will be an impact but probably not till 1st Calendar Qtr. of next year. But Y2K replacement will probably drive base business.
Get the CD out to as many as possible. On the services side adding 150 people over the next 6-9 months. Subcontracting for additional manpower.
Core business has other propriety software that is being received well besides Y2K.

q (First NY Securities) Internal Leads? 3500 potential site at 20K?
a. IVAX came from other. Even larger # of sites, but 3500 equivalent to amount being paid on tools when negotiating with larger corps. Potential market is 70K plants with 100+ empl and beyond that the utility market. We use 20K estimates for tools alone, but 300K for individual plant remediation.
Flour Daniels will not emphasize Y2K (We don't need that after all). he is leaving Flour to work with a smaller faster company with what he sees is a very real business. Some people are still in denial, others taking this very seriously; concentrating on serious ones and others will wake up. Much greater state of awareness today than 30 days ago. Y2K business still active after Year 2000.

q. (Smith Barney) Any competition?
a. No CD ROM competitor. One large engineering company doing work in this arena. The other company is approaching this business from a A&E perspective only and not from a tool perspective. Too late for them to get into tools area.

Smith Barney: We need to do our job and tell our clients to buy the stock!



To: C.K. Houston who wrote (6003)11/15/1997 12:23:00 PM
From: C.K. Houston  Read Replies (1) | Respond to of 31646
 
Accolades to our leaders!!

TPRO SENIOR MANAGEMENT & BOARD MEMBERS (Revised 11/15/97)
====================================================================

CEO & President, John Jenkins
Hired 1/95 to clean up and refocus corporate strategy. Action has been aggressive: non-core businesses have been sold, administrative overhead reduced by $600,000/year, and growth put on a fast track pace through acquisitions.
"Turn-Around" Story: tomorrowcast.com
biz.yahoo.com

Senior V.P. Sales, Larry Hagewood
6/22/97 During his six year tenure as part of the senior management team, Elsag Bailey grew from a $350 MILLION company, principally based in the United States, to a major global corporation with sales of greater than $2 BILLION & offices located in 25 countries.
biz.yahoo.com

V.P., Business Deveopment, Ken Owen
Previous Director of Systems Integration at FLUOR DANIEL, and an early leader in the recognition of Year 2000 issues in factory automation systems. fluor.com

CFO, Doublas Kelsall
6/5/97 Named as CFO. Previous 2 years CFO & VP of Finance for Evolving Systems, Inc., (ESI), a developer of computer software and professional services, with more than 300 employees. Mr. Kelsall's tenure at Evolving Systems, Inc. was highlighted by a dramatic improvement in the financial position of the Company, including an increase in gross profit margins, decrease in expenses, and the redirection of product mix to focus on the development of proprietary products.

John Jenkins (TPRO Pres & CEO) stated, "Mr. Kelsall's recent experience as CFO of ESI will accelerate our financial consolidation efforts and add greatly to our strategic and business planning process. His years of experience in capital formation will be of great value as we continue to build the proper capital foundation required to support our aggresive growth plans."

COO, Kevin Fallon

.........................................................................................................................
New Board Members announced 6/5/97
.........................................................................................................................

Robert Costello, also board member of URS Corporation, an engineering firm which has recently doubled in size and currently has more than 3,000 employees and over $400 million in sales. Prior to serving as a URS Corporation director, Mr. Costello was the Chief Executive Officer of Greiner Engineering, Inc. a publicly held (NYSE) firm which in 1996 merged with URS Corporation. As CEO of Greiner, Mr. Costello developed and implemented a restructuring in the leadership of high-growth publicly held companies, and has strong marketing experience in Southeast Asia.

Robert Pearson currently serves as Senior V.P. & Manager of Corporate Finance for Renaissance Capital Partners (RCP). RCP is the operating manager of Renaissance Capital Growth and Income Fund III, Inc., and Renaissance United States Growth and Income Trust, Ltd. which combined are the owners of a 9% convertible debenture issued by Topro, Inc. in February of 1996. Mr. Pearson previously served as Executive V.P. and CFO of the Thomas Group, Inc., a publicly traded consulting firm, and was Vice President-Finance of Texas Instruments, Inc.