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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (1225)	1/17/1998 1:44:00 PM
From: IngotWeTrust	Respond to of 2011

Bill, that was a FINE!!!! explanation of drag on earnings and expensing vs. capitalizing. I want to express my appreciation for not only your lucid explanation, but also the educated man's writing skill to do same in such logical and concise manner. You have a Fine Mind! It's a pleasure to read your contribution(s) here on IAIC! O/49r

To: CalculatedRisk who wrote (1225)	1/17/1998 3:43:00 PM
From: RikRichter	Read Replies (1) \| Respond to of 2011

Bill, WRT software capitalization costs, you are making some major assumptions that: 1) All Y2K work ends on January 1, 2000. I have heard some experts say (Roger McNamee of Integral Capital Partners for one) that there will be Y2K remediation work to the Year 2010! He stated this in a New Year's Day CNN Moneyline interview. So I strongly disagree with your statement that capitalized software costs for Y2K companies only have a useful life of less than two years. 2) In the case of IAIC, their enhancements for UNICAST were NOT solely for Y2K. UNICAST was also modified and enhanced for the purpose of platform and language migration which is the centerpiece of their post-Y2K strategy. Thus, in IAIC's case, UNICAST has a far LONGER useful life than two years. One thing all investors (long or short) in IAIC can agree on is that 1998 will be THE year to show the Y2K investing public how valuable their UNICAST product is! I remain ver-r-ry long on IAIC! Regards. Elliot

To: CalculatedRisk who wrote (1225)	1/18/1998 1:27:00 AM
From: Brad Davies	Respond to of 2011

Bill, looking back over previous SEC filings it appears IAIC takes as much time as they can to report. Dec 31 is their year end. Last year they didn't file their 10K until April. I think they will probably hold off as long as possible to file. If their was anything positive to report (ie sales) for the last quarter, they would have announced it by now. They have every incentive to hold off, in the hopes of being able to announce sales before shareholders see the results of last quarter. My guess is the PP shareholders will sell before the financials are announced, or short the stock against future delivery of their shares to lock in their profit. BTW, I noticed your having done a lot of work reviewing the financials on the ACLY thread. What's your view on the IAIC financials. I noticed that sales are down, while receivables are up. Also check this out this from the employment contract with the current president. I wonder how this was accounted for? Could be in the SGA, but I am not sure. (the actual letter agreement was filed in the last 10Q} Optional Compensation - --------------------- You will have the right to receive up to an additional $300,000 (hereafter "Optional Compensation") for serving as president and chief operating officer for a period of one year from your employment commencement date. You will have 15 months from your employment date to decide whether to receive the Optional Compensation. Against the potential obligation of the Company to pay you the Optional Compensation, upon commencement of your employment, the Company will advance you the sum of $50,000. To secure the Company's contingent obligation to pay the <PAGE> remaining Optional Compensation to you, the Company will deposit into a segregated account for your benefit $100,000 on January 1, 1998. Subject to the further provisions hereof, after the one year anniversary of your employment you will have the right to receive payment of the Optional Compensation by providing written notice to the Company. Upon receipt of such notice, you will receive within ten business days $100,000. The remaining $150,000 will be paid to you on or before January 1, 1999. In addition, upon receipt of such notice, your rights in and to any of the stock options not previously exercised will terminate and you will be deemed to have forfeited all of the remaining options. In the event that any options have been exercised prior to such notice, the fair market value of the IAI stock received upon and as of the date of exercise of the option less the aggregate prices paid upon such exercise will be totaled. This total amount will be subtracted from the Optional Compensation ($300,000), and the positive difference, if any, will be due you in accordance with the time frames set out in this paragraph. The initial $50,000 advance upon commencement of employment will become due and payable to the Company to the extent that such advance exceeds the Optional Compensation then payable to you. If notice is not received within the 15 months of your employment date, the right to receive the Optional Compensation will terminate and the initial $50,000 of Optional Compensation will be due the Company based on a mutually agreeable plan of repayment within 12 months, but you will retain the rights to all of your options. Regards, Ron

To: CalculatedRisk who wrote (1225)	1/18/1998 2:13:00 PM
From: cage	Read Replies (1) \| Respond to of 2011

In thinking about the claims that PP investors are getting ready to jump ship as soon as the 45 day time period is up, I for one have to say that it is a highly unlikely occurrence. This Q- IAIC has lined up several announcements of contracts as well as other news. A coordinated approach by IAIC and CA is causing a slight delay in some of the announcing(that is normal). It is the contract and revenue size that will determine the way things go and if the y2k problem is growing by the leaps and bounds that the press is starting to announce in all forms, then IAIC will be among the many y2k companies that will have very bullish years. In addressing the thought that the PP parties will dump all their shares as soon as allowed-think about it-how much will they make on it if the price is 17-18 and they start selling 100,000's of shares at once. They won't get their price-it will drop substantially and they won't be making the 7 a share, or 10-15 a share, some are claiming that is all the PP parties want to make. Even if it goes up to 25 in that time-45 days- the market still wouldn't hold up the price if all started dumping. No, these PP players investigated with due dilligence much more so than the previous PP, the future of IAIC and its product, the y2k problem, and the CA/IAIC relationship and came to the conclusion that IAIC was a very worthwhile place to be. An automated tool company at a time when companies are running out of time. Check out the article in Business Week(Jan. 26 )page 74. Look at just one bank's story(col. 2) that is depending on a labor intensive way of "fixing" the problem. They are on an estimated price tag of 250 million dollars and have only fixed 35% of the problem. They have 1,000 people working on the problem. IAIC has a tool that speeds up the process and cuts down on the labor #'s. Before this year the labor intensive companies got all the "positive press" but IMHO they are not the future-companies like IAIC are. This is the year of the y2k sector-especially the automated tool-why would investors jump out just as the money started to come in-would seem ludicrous. I believe they are in to make a lot more than 20 a share. You think about it Look into (in debth) who has invested in the PP. Some very impressive parties. Did the PP investors get in at favorable prices-yes-but venture capitalists usually get a 20% discount on investments like this. Will they make a higher % than you and I-yes-do you throw away the high % you will make to spite them? I am not telling you not to sell or buy, just take a long hard look. What makes sense in this year of the 2000 buildup? A nice day to all.