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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: M. Frank Greiffenstein who wrote (16574)	5/12/1998 1:28:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 31646

<<Most new clients are moving directly to adopting comprehensive programs and by-passing the pilot stage that had been a typical program element to date. The costly 'awareness building' element of our sales and marketing program will be significantly reduced in this and subsequent quarters with those resources re-directed to closing additional specific programs and growing core business relationships with our new clients. >> Doesn't this mean that companies aren't buying the front end analytic services? If you combine this paragraph with recent news of poor sell-through of CD through Wonderware, can't we conclude that y2k software sales are falling far short of expectation? Oh yes Frank, I can take it and I still find your analysis to be flawed. The fact that clients are foregoing the useless pilot projects and moving into direct I&A and remediation mode means that rather than getting a mere sampling of manufacturing facilities to work on and sell tools for, TAVA is now rolling out for all facilities. What exactly do you think those "tools" are for?? They still need the tools and CD rom. The only difference that TAVA no longer has to prove the worth of their services to the client. This means less hand-holding and more substantial and significant billing. I&A STILL has to be done and this will mean hours being billed to the client at a $200-225/hour rate, nearly double last quarters. The fat margin is still there and then some. The upcoming quarters should show substantial increase in revenue and profit margin. If you were thinking this quarter was going to be the blow-out one, I'm afraid that was your own delusion. I have gather VERY LITTLE of that expectation here over the past several months. In fact, people were more worried about only making .01/share and breaking even on the diluted share ratio. I guess I look at the glass as being half full... Regards, Ron

To: M. Frank Greiffenstein who wrote (16574)	5/12/1998 1:59:00 PM
From: Quad Sevens	Read Replies (1) \| Respond to of 31646

Doc: I share your concerns about the CD. This was supposed to be the real kicker. Anybody: Go back to the posts in the fall, and you will see that the CD caused most of the excitement on the board, leading to wild projections of revenue. Is the CD dead? Good question. The oldtimers here will remember that 3rd qtr FY 98 was supposed to be the breakthrough quarter. That forecast was changed recently, but it should at least be noted that in DID CHANGE, just as Doc said. Doc: That pilots are being skipped is nothing but good news. The companies are still going through complete I&A programs with TAVA (using all the tools), they're just rolling it out large-scale, without the time-wasting small-scale pilot business. I also find that y2k plant 2.0 being the final version doesn't have negative implications. We're getting close to the deadline, after all. In short, TAVA is doing much better on the consulting end, and much worse on the CD end, than we all thought 8 months ago. But the CD is where the real money was to be made. I'm not sure the CD is dead as a super-revenue generator. If it is, the investment needs reconsideration. Wade