Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DD™ who wrote (3687)	12/10/1997 2:28:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 10786

Re: ALYD has 32 Y2K contracts with 10 more in the final stages... Taken from ALYD's web site: alydaar.com (Note: italics represent emphasis added by ALYD) ========== After several long months, I am pleased to say that Alydaar finally has been listed on the NASDAQ's National Market System. Although this is a great milestone, I consider it only a new starting line for the company. Alydaar currently has 32 Year 2000 contracts signed for remediation work and another 10 in final negotiation plus several pilot agreements. Since Alydaar's Year 2000 services are automated and were established to service companies with large amounts of code, the majority of our contracts are with billion dollar firms. I am pleased to see that Alydaar is one of a handful of companies who are actually receiving outsourced Year 2000 remediation work. I believe this is a result of the technical quality of our work, the language and platform independence of SmartCode, and our references. The demand for our services continues to grow as the Year 2000 deadline approaches. Many firms had not realized the true technical challenges in a Y2K effort, some did not have budget, some have had other Year 2000 vendors fail, and others have just followed their Year 2000 plan and it is now time for remediation. Whatever the reasons for decision delays, our expanded sales force is ready to address their reengineering needs. I have previously stated that packaging problems by our customers had slowed revenue growth. The packaging issue is now solved and we are on schedule to meet our revenue goals of $6-8 million this quarter and be profitable. I am pleased by our recent announcement of a Year 2000 contract with Northern States Power. I believe this is significant for two reasons. The first, is because it is our first announced joint contract with Compuware. The second, is because Alydaar with perform 100% of the remediation on approximately 16 million lines of code, over half of which is non-COBOL. This is important because much of our competition will sell services exclusively to address COBOL. However, almost all large firms have more than just a COBOL inventory, and it is much easier to outsource to a single vendor, with a track record, who can address all of their remediation needs rather than have to manage multiple vendors. We are also pleased by the quality of our product and as the Year 2000 comes closer this is even more important. Empirical information shows that an offshore service provider will introduce one error per one hundred lines of code repaired. Typically, with a manual effort 2-6% of the code will need to be changed. This means that even at 2%, 20,000 new lines of code are introduced to the system for every million lines of code repaired. Therefore, for every million lines of code remediated, it would have at least 200 new errors inserted into the code. Alydaar's process is radically different. Since SmartCode is, well, smart, it changes only one-quarter to one half of one percent of the code and has an error rate of .000003%. The Year 2000 problem is all about time, and as we draw nearer to the end of the century, companies with large amounts of code will not be able to have the time to perform complete system tests. In fact, since Alydaar's process is so accurate, some of our customers are not bothering with the unit test component of testing (which the Gartner Group says is 25% of a Y2K effort). Demand for Alydaar services continues to grow and revenue prospects for 1998 and 1999 have never been brighter. Best holiday wishes, Robert F. Gruder CEO