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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: RikRichter who wrote (10454)	3/27/1998 9:18:00 AM
From: Steve Rodio	Read Replies (1) \| Respond to of 13949

Elliot, interesting addition to the "tool maker" vs. "factory" debate on this thread. IAIC says that YTK customers want a factory solution. From the press release: A ''solutions factory'' is the term applied to a facility dedicated to achieving Year 2000 compliance for customers. Solutions factories are state- of-the-art facilities that are staffed by experts in conversion technologies, or by technicians trained by experts; and are designed to handle large volumes of computer code. Programmers use automated tools to remediate, or fix, problem computer code. Because they can remediate a large volume of code in a very short time, these factories provide a highly efficient, cost-effective way for organizations to fix their applications. ''Our backlog of solutions factory projects is growing rapidly,'' said Sandor Rosenberg, IAI's chairman and chief executive officer. ''Between projects that are just getting underway, and the level of business we see based on current proposals outstanding, it's clear that we need to significantly expand capacity. ''The new facility will more than double our total capacity,'' Mr. Rosenberg said. ''Our goal is to reach a capacity of 300 to 400 million lines of code annually.'' Mr. Rosenberg said the character of the projects being undertaken by the company was also undergoing a change. ''A year ago, we believed we would principally be in the software 'tool' business, selling our UNICAST product for organizations to use in the most labor-intensive phase of Year 2000 compliance. We believed a relatively small number of customers would ask us to perform that date remediation task for them. We did not believe professional services would be a major component of revenues. ''Instead, we are finding that many of our customers are asking that we perform the remediation phase for them. In some cases, we are being asked to take responsibility for full Year 2000 compliance,'' Mr. Rosenberg said. ''That is an unexpected turn of events, and it augurs well both for our business until the end of 1999, and for our post-Year 2000 prospects.'' <Snip> Stan Reese, IAI's Vice President for Professional Services, said the demand for solutions factory services mirrored a recognition by government and commercial organizations that there will be no easy solution to Year 2000 compliance. ''Organizations finally recognize that technical resources available to address Year 2000 compliance are likely to become severely constrained,'' Mr. Reese said. ''Concurrently, organizations have taken stock of their internal resources and have concluded that they lack the necessary technical and computing resources to do the job themselves, with or without automated tools. Outsourcing becomes the logical answer, and who better to outsource to than the company that developed and best understands the automated tools? I believe that helps explain the change and increase in our business.'' I believe that IAIC is currently an outstanding value. It has the benefit of a strong alliance with CA, and its market cap is only a fraction of most other reputable YTK companies. IMHO