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Technology Stocks : Elcom International (ELCO) -- Ignore unavailable to you. Want to Upgrade?

To: G-PARR who wrote (88)	4/28/1998 2:36:00 PM
From: Chris Baker	Respond to of 736

As you know ELCOM is NOT a software company: the small Elcom subsidiary is and the Company likes to hype this relatively small subsidiary. There was something about Year-2000 compliant in the 10-K, but most likely the new version of PECOS is. Background on the Company from reading the 10-K: The Catalink subsidiary generates almost all the Company's revenue and sells turn-key solutions - PC's (Compaq and IBM mostly), software, installation support and has a rapidly growing service and consulting business. The turn-lye systems include PECOS and standard accounting packages. The company benefits from the Year2000 problem because many potential customers are replacing systems that are not Year-2000 compliant. Some of the PECOS system processing appears to be done on the companies computers. The company may also be a PC re-seller to corporations where the company evaluates the customers needs and then sells the customer PC's, which is the companies original background. PC inventory write-downs have hurt the company in the past. The company has been seeking suitors for almost a year - without this no doubt the stock price would be lower. This was detailed in the letter to shareholders. The Company is in my opinion somewhat lacking in presenting the strategy and potential for the company, especially to Wall Street, although clearly there are some very high growth areas like the Company's service and consulting business. The Company needs to show some good results for a higher stock price, which also would impress a potential suitor.