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Gold/Mining/Energy : Unitec Int. Controls Inc. -- Ignore unavailable to you. Want to Upgrade?

To: csm who wrote (120)	1/26/1998 9:18:00 PM
From: John B. Smyth	Read Replies (1) \| Respond to of 856

Thanks for the support, Stuart. There is a size of contract that is right for our critical mass now. Small projects in the $10 to 20K size are not our cup of tea. The level of effort to generate that business is the same as required for a $1 M contract. While we have a large number of $20K size projects, they tend to group together in $100K sizes that can be handled efficiently. These are typically add-on projects to existing orders which tend to be quite profitable as the engineering costs have already been covered. The biggest contract we have won so far is $4.2 Million, but is essentially a series of 6 phases, each representing $600K more or less per quarter. I like this kind of a project in that it covers the base load over a long period and each phase is of a size that we are perfectly comfortable with. The mega dollar projects if handled properly can be parcelled into similar phases or may be repetitious supply of our hardware (cookie cutter type work). This means little drain on our engineering and project management resources. Each project has to be reviewed on its merit and impact on our resources. Another nice thing about the mid smaller projects is the rapid cash flow return. The larger projects tie our capital up for significant periods of time as we work to specified milestones. Regards, John