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

To: CalculatedRisk who wrote (1231)	1/18/1998 8:27:00 PM
From: RikRichter	Read Replies (1) \| Respond to of 2011

Bill, Thanks for the accounting lesson! But you admit that capitalizing software costs is still (for the moment) a generally accepted accounting principle. If it is acceptable isn't management prudent in NOT expensing these costs UNTIL revenues start flowing in? What would you do if you were the CFO of IAIC? The bottom line is: will the "New" product-oriented IAIC generate more than enough revenues to overcompensate for their increased infrastructure expenses and expected amortization of capitalized software costs? Based on their solid and strengthening Y2K relationship with CA for their 4GL products and multiple Y2K service alliances, MY ANSWER IS AN OVERWHELMING Y-E-S! With only 6.8 million shares outstanding, not to mention a small float, I suspect that there will be an enormous EPS surprise on the upside. Bill, on a separate issue, do you care to comment on the quality of IAIC's new institutional stockholders? I for one am VERY impressed that they have attracted some very significant institutional players! One year ago IAIC was a virtual unknown on Wall Street. This is rapidly changing! Regards. Elliot