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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Robert Gomez who wrote (12464)	7/23/1998 6:11:00 PM
From: Jeffrey L. Henken	Read Replies (2) \| Respond to of 13949

What's the general consensus on TPII of those who know the stock on this thread? Regards, Jeff

To: Robert Gomez who wrote (12464)	7/23/1998 10:34:00 PM
From: Big Dog	Respond to of 13949

Here's a synopsis of the conference call. I'm combining opening and closing comments along with answers to questions to give a complete picture. For the next few days the CC replay can be heard at (888) 836-6074 [access code - 166004#). CEO Catalano stated that PTUS has a renewed sense of momentum, with good demand for its services, and is very pleased with the successful execution of its "new" business plan which emphasizes y2k renovation services. Catalano stated that PTUS had a healthy 2nd Quarter with good revenue growth, steady expense costs and operating profitability (before restructuring charges). Ever since PTUS adopted its "new" emphasis on the service side of the y2k business, demand has been strong. Catalano expects this trend to continue. Catalano was "happy" with the quality of the business PTUS is getting from major companies (First Union, Bank of Boston, etc.). CFO Deary stated that PTUS earned $0.03/share (before restructuring charges - consisting of severance benefit costs involving 40 former employees and facility consolidation). 2nd Quarter growth margins were 57% with a business mix of 60% service and 40% licensing. DSO was 77 days. With regard to the lawsuits, Deary indicated that there has been little change in their status (i.e., they're still out there and there has been no court "certification of a class action"). Deary emphasized that PTUS feels the lawsuits lack merit and the company will fight them vigorously. There were six (6) analysts that asked questions. Catalano was congratulated on the success of PTUS's "new" emphasis on the service side of its business. The analysts wanted to know what was the long-term strategy of PTUS? Catalano stated that PTUS will capitalize on its Y2K business and attempt to obtain outsourcing, maintenance, and other IT services with its "new" Fortune 1000 clientele. Several analysts raised questions concerning the fiscal health of PTUS. Catalano stated that PTUS will seek to maintain 50% margins by continuing to invest in technology improvements to ensure productivity gains. While "cash" is down substantially, the draw-down is related to the losses of the 1st and 2nd Quarters. With the acknowledged success of PTUS's "new" business strategy of emphasizing the service side of the business, "cash reserves" will improve in the 3rd Quarter and thereafter. Demand continues to be healthy in the Y2K renovation service area, and Catalano is pleased with the healthy "pipeline" of its "outsourcing" business. Deary stated that PTUS management continues to watch company "costs": G&A must be less than 10% of Revenues and Sales costs will be limited to high teens as a percentage of Revenues. Hope that helps.