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To: C.K. Houston who wrote (285)11/17/1997 6:32:00 PM
From: C.K. Houston  Read Replies (2) | Respond to of 810
 
TPRO REDCHIP REVIEW Nov '97
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"Based on TPRO's recent financial results, we believe profitability may remain elusive during 2Q98 as it builds the engineering, sales and administrative staff required to meet the anticipated ramp in its Y2K related services. It now has 41 Y2K accounts, 80% of which represent new clients. Of the 20% who were previous clients, TPRO is benefiting from access to managers with corporate wide responsibility for manufacturing facilities. Previously, TPRO was limited to doing business with and negotiating contracts on a site by site basis. This new-found access should create relationship, hence, opportunities well after the Year 2000 problem has been addressed.

To successfully maintain these relationships, TPRO will have to execute its existing contracts with a high degree of responsiveness and service. TPRO is already in the process of recruiting and training up to 150 people over the next six-to-nine months. While we remain very optimistic over the long-term, we believe the 50% increase in staffing levels could have a negative impact on the quarterly financial results as TPRO will incur employee-related expenses during the recruiting and training period. However, become billable.

Considering the pace and size of recent contracts, and the rapid roll-out of its CD-based software product, we expect TPRO's shares will continue to receive substantial support on Wall Street

Redchip Review Analyst: Ken Trbovich 11/14/97
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