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To: Tech Master who wrote (5930)	4/29/1998 2:35:00 PM
From: TEDennis	Respond to of 10786

Tech Master: Re: "once people begin to understand the ALYD business model better..." My inexperience is showing again. Answer this for me, please. What is going to suddenly make "people begin to understand the ALYD business model better"? The business model hasn't changed just because of this earnings report. Or, has it? I'm confuddled (a cross between confused and befuddled). TIA, TED

To: Tech Master who wrote (5930)	4/29/1998 2:37:00 PM
From: feltburner	Respond to of 10786

Truth and TM: Truth, agree w/ comments re: Kevin Kimberland- dealt w/ him in the past and proved himself to be a sleazeball. Tech Master, I believe you are correct about the business model; the operating income leverage model is playing out beautifully. On a revenue figure that doesn't even hint at what the co. can do this year (part of the reason for the sell-off), the co. achieved a nearly 21% operating margin; the operating margin on revs. above 4Q's break-even level of revs. was over 72%. They have the infrastructure, contracts, and customer relationships in place, and the tool and the business model both work great. They are now distancing themselves from all but the bodyshops, and the factory solution is barely starting to gain momentum in the marketplace. The only negative is the dwindling P/E which will be awarded to Y2K plays as we enter '99, which is why it is important for the co. to make some small but strategic acqs. before yr.-end. -Felt Burner