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

To: Bill Wexler who wrote (23524)	9/24/1998 7:22:00 AM
From: RAVEL	Respond to of 31646

Denver-Based Tava Technologies Sees Sales Rise, Stocks Slide Sep. 24 (The Denver Post/KRTBN)--Tava Technologies Inc. announced Wednesday record sales for both the fourth quarter and fiscal year ended June 30. But despite the Denver company's continued growth and rise to profitability this year, its stock, which closed down 68.8 cents at $5.50 Wednesday, has plunged almost 61 percent from its high of $14 on April 23. Company officials and analysts said the stock dropoff can be attributed both to the overall weakness in the stock market and to the recent share-price falls of many companies that focus on the Year 2000 problem. Tava creates software to help manufacturers become Year 2000-compliant on the factory floor. The highly-hyped Year 2000 problem refers to computers that store dates with two digits for the year. They may run into a problem Jan. 1, 2000, if the computers recognize "00" as 1900 instead of 2000. Because several companies whose products and services relate to the Year 2000 problem, or Y2K, recently failed to meet analysts' expectations for their performance, stocks in that sector have dropped. "Anything with a Year 2000 association got beat up pretty badly as a result of that," said John Jenkins, Tava CEO. "The Year 2000 fascination that drove the stocks up is now something of a past event." But there's more to Tava than Y2K. "Tava is a little bit unique," said Russell Welty, senior research analyst with Hanifen Imhoff in Denver. "It got painted with a broad brush of being a Year 2000 provider. But the reality is they have a good, solid services business." For the fourth quarter ended June 30, Tava reported record sales of $14.9 million, up from $9.6 million for the same period in 1997. The company also reported earnings of $605,000, or $0.03 per share, compared to a loss of $3.2 million, or $0.28 per share, for the year-ago period. This was the second quarter ever the company was profitable. Welty said he had expected earnings of $0.04 per share, but Tava had expenses that brought that number down. However, Tava's revenue and operating earnings were in line with expectations. Tava reported revenue of $48.4 million for the year ending June 30, up 31 percent from $36.8 million in 1997. For the year, Tava lost $310,000, or $0.02 per share, compared to a loss of $2.8 million, or $0.31 per share, the year before. As much as $14.4 million in sales for the year came through Tava's Year 2000 services, and the company expects that to continue into 1999. But while its Year 2000 work has brought in about 100 new large corporate clients, Tava is working to convert them into long-term customers, Jenkins said. Tava is an amalgam of several companies, all of which have been around for at least 15 years, Jenkins said. The company's core business is helping integrate the many electronic and automated systems that control a company's manufacturing process. Since January, the company has grown from 320 to 520 employees. But with an eye toward business beyond the Year 2000, the company recently launched a consulting arm that aims to help clients link the computer systems that run the accounting and financial sides of their businesses with the manufacturing sides. "The momentum in the business is strong and accelerating," Jenkins said. "We have tremendous opportunity." By Leyla Kokmen -0- Visit The Denver Post Online on the World Wide Web at denverpost.com

To: Bill Wexler who wrote (23524)	9/24/1998 8:05:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 31646

While investor psychology may have temporarily(?) turned against Y2K stocks, as exhibted by your JJ quote, you conveniently ommitted the analyst comment that contradicted your analysis of TAVA as a fraud. "But there's more to Tava than Y2K. "Tava is a little bit unique," said Russell Welty, senior research analyst with Hanifen Imhoff in Denver. "It got painted with a broad brush of being a Year 2000 provider. But the reality is they have a good, solid services business." For the fourth quarter ended June 30, Tava reported record sales of $14.9 million, up from $9.6 million for the same period in 1997. The company also reported earnings of $605,000, or $0.03 per share, compared to a loss of $3.2 million, or $0.28 per share, for the year-ago period. This was the second quarter ever the company was profitable." With or without Y2K, JJ is increasing revenues and turning this company around. And if Y2K turns out to the "non-event" you claim (and I hope it is), TAVA will reward long-term investors who realize that the the company holds long-term potential in the system services business. Regards, Ron

To: Bill Wexler who wrote (23524)	9/24/1998 8:06:00 AM
From: B.D.Bauden	Respond to of 31646

"Jenkins states, "The Year 2000 fascination that drove the stocks up is now something of a past event." Bill, You read the article and that's all you got out of it? Anyway, thanks for the link. Bruce