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Technology Stocks : Information Architects (IARC): E-Commerce & EIP -- Ignore unavailable to you. Want to Upgrade?

To: feltburner who wrote (3273)	11/14/1997 8:29:00 PM
From: tech	Read Replies (1) \| Respond to of 10786

Actually, if we look back at the Briefing.com article this very point was addressed. "But where are the earnings? At $10 million revenue with 250 employees, the revenue/employee is only $40,000, certainly not enough for profits this year, and only one-tenth of Computer Associates revenue/employee figure. If projections are accurate and next year brings in $50 million for 500 employees, Alydaar might see a revenue/employee figure of $100,000, certainly possible for earnings, but still substantially below the standard for technology companies." exchange2000.com If we even take this a step further, Gruder was quoted as saying he expected ALYD to have 1,000 employees when they are at full capacity. In fact, the WSJ article a couple of months ago criticized him for his predictions of how fast ALYD would achieve this. Now if we take the 1998 figure of: [ 500 employees to produce 1998 FYE est. of $50 million ] we would get the $100,000 / employee figure Now if we take Gruder's own 1,000 employee figure and we assume that ALYD will be at full capacity by FYE 1999 No? The est. FYE 1999 revenues were projected to be $100 million. [ 1,000 employees to produce 1999 FYE est. of $100 million ] we would get $100,000 / employee that would be ZERO...ZIPPO....NO GROWTH between 1998 and 1999 Oh, that's right I almost forgot. ALYD really doesn't need all these people. According to someone on this thread: "ALYD could get by with teams of just one person. However, for quality control reasons they choose to have a maximum of five people." exchange2000.com. I think someone may want to tell Gruder he should worry a little less about "quality control", and focus more on GROWTH Actually, if we look back at the Briefing.com article this very point was addressed. "But where are the earnings? At $10 million revenue with 250 employees, the revenue/employee is only $40,000, certainly not enough for profits this year, and only one-tenth of Computer Associates revenue/employee figure. If projections are accurate and next year brings in $50 million for 500 employees, Alydaar might see a revenue/employee figure of $100,000, certainly possible for earnings, but still substantially below the standard for technology companies." exchange2000.com If we even take this a step further, Gruder was quoted as saying he expected ALYD to have 1,000 employees when they are at full capacity. In fact, the WSJ article a couple of months ago criticized him for his predictions of how fast ALYD would achieve this. Now if we take the 1998 figure of: [ 500 employees to produce 1998 FYE est. of $50 million ] we would get the $100,000 / employee figure Now if we take Gruder's own 1,000 employee figure and we assume that ALYD will be at full capacity by FYE 1999 No? The est. FYE 1999 revenues were projected to be $100 million. [ 1,000 employees to produce 1999 FYE est. of $100 million ] we would get $100,000 / employee that would be ZERO...ZIPPO....NO GROWTH between 1998 and 1999 Oh, that's right I almost forgot. ALYD really doesn't need all these people. According to someone on this thread: "ALYD could get by with teams of just one person. However, for quality control reasons they choose to have a maximum of five people." exchange2000.com. I think someone may want to tell Gruder he should worry a little less about "quality control", and focus more on GROWTH I still stand by the analysis I did a few days ago. exchange2000.com But lets not fool ourselves now, if ALYD could do conversions with a team of one person they would. But lets not fool ourselves now, if ALYD could do conversions with a team of one person they would.