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

To: crc who wrote (17802)	5/29/1998 3:37:00 PM
From: Rick Bullotta	Read Replies (1) \| Respond to of 31646

100MM is based on somewhere near 500-600 engineers billing in the average range of $150-170K a year plus a few million from the Plant Y2K CD stuff. Note that this annual billable rate is well above the typical plant floor systems integrator average of $100-125K, but I believe TAVA will be able to command this average based on a significant premium for their Y2K work, reputation and geographic coverage, and a high utilization rate on remediation projects after the audits (these are the two of the three main factors that determine profitability in the plant floor SI business, billing rate and percent utilization, with the third being the cost of sales...integrators with a high repeat business rate can make up a great deal of margin in reduced cost of sales, which often run 10-15%). Despite all that, it will still be difficult to meet what I consider to be the unrealistic expectations placed upon them by the investment community, which is the real source of my concern.