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Technology Stocks : Cognicase (COGI, T.COG) - Integrated IT Solutions -- Ignore unavailable to you. Want to Upgrade?

To: gerald tseng who wrote (90)	3/10/1998 2:57:00 AM
From: gerald tseng	Read Replies (3) \| Respond to of 843

I did listen to the CC this afternoon. Here is the summary: 1. It's quite a plain-vanilla type of CC. Nothing too surprising up/down, nor was there too many participants. Probably total of 5 people asked questions.(however, someone from FHBG funds was there.) 2. SH acquisition: 10.7 mil subcontracting revenue to COGIF in next 12 mo. COGIF remains to be preferred subcontractor for SHC. 3. Hexagon acq.: the company is running profit margin of 3.5% before acquisition (net margin after expenses and tax), COGIF intends to improve the margin to 7% within 2 qtrs. 4.Someone asked why SHC is selling their canadian operation to COGIF: they answered that SHC sold their operation because SHC want to focus on the higher margin side of y2k business like project management, and leave the actual assessment/conversion/testing to other subcontractors. 5. Question asked if Co. seeing some cross-selling due to the acquisitions, they answered YES, but they did not seemed to have anything material to specifically talk about. 6. Somewhere during the CC, I THINK I HEARD ceo said they are planning to announce contract with Canadian goverment today, but the agency was taking their time to the decision, so nothing to report yet. (disclaimer: this would be a good news indicating contract announcement is immenent, HOWEVER I AM NOT SURE IF I DID HEAR THIS since I was having my lunch at the same time. Hopefully when JOSEF listened to the replay, he will verify this) 7. Another part I didn't get it quite clear. Question re: LOC charge is 40c-50c/LOC w/o testing, $1.20/LOC w/testing. 8. When asked about the potential of increasing their charge per LOC, COGIF emphasized at least 2 times during the call that customer does not negotiate the price at all, pretty much whatever they charge for it. However, they said they still want to be careful on this, because "customer is customer, you know". (SO I GUESS THIS MEANS THEY WILL CHARGE THE INDUSTRY GOING RATES) 9. Co. is still comfortable with the census of 0.40-0.42C EPS. (Zack shows 0.38C this FY. I don't have 1st call, can someone post it plus the link to it.) Josef, or anyone more familiar with COGIF, please listen to the replay. I might have missed important points from the CC due to the fact that I just started study this stock, some important dialog might not transpire into any significance in my ear.