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Technology Stocks : ATC Communications ATCT -- Ignore unavailable to you. Want to Upgrade?

To: Northern Marlin who wrote (2553)	5/15/1998 5:44:00 PM
From: Northern Marlin	Read Replies (1) \| Respond to of 2636

More notes from the conference call: Regarding new call centers: 1. The new center in Joplin now has 330 seats, with over 400 agents. Employee retention is good, and the pay scale is less than in Dallas. 2. In the next several weeks ATCT will sign a lease for another call center in a neighboring state (New Mexico?) with over 400 work stations. It will be operational 90 days from the execution of the lease. They already have a lot of the fixed assets for this operation. One of their clients has already committed to using 50% of the capacity. 3. CEO Santry stated that they will need another 300 seat call center opened by the end of the summer. Regarding the merger: 1. Because of the suit filed in Delaware by a shareholder to block the merger the initial proxy was filed with the SEC confidentially. The public document will be filed as soon as the lawyers say it's OK, and the numbers have been updated for IQI's and ATC's most recent results. 2. The agreement is definitive. ATCT already has proxies for 86% of IQI's shareholders (irrevocable). They only need regulatory approval and the approval of the ATCT shareholders for this to be a done deal. They expect to close in July. Regarding margins: 1. Gross margin improved for the second consecutive quarter, due to improved efficiencies, better cost mgmt, and rev growth in higher margin programs. 2. Both COO Allen and CEO Santry mentioned on more than one occasion that margins will continue to improve.