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

To: Jack Zahran who wrote (23548)	9/24/1998 2:55:00 PM
From: Nanchate	Read Replies (1) \| Respond to of 31646

Notes on CC thanks to TMF Keeler of the Motley Fool: boards.fool.com Here are my notes from the conference call. In general I got the impression they knew they missed estimates (should have left themselves some wiggle room) and that they believe the present stock price reflects a lack of belief in TAVA's future beyond 12/31/99. 4Q98 TAVA conf. call 9/23/98 * High ammortization expense. EBITDA is very impressive. * 56% revenue growth (yty) and 28% sequential * $9.13 MM Y2K ($4.1 MM licenses and products) * Most booking came in May and June. * 44.1% gross margin (changed allocation for overhead for change in organizational structure). Would have been 51% before the change. - 87% gross margin on Y2K P&L - 40%+ Y2K services. * SG&A was 32.8% with several large conferences and lots of commissions. High legal expense due to all the customers. High travel expenses because of International business. * Hired 80 people during the quarter with recruiting expense of $140K * Amortization is the key to understanding. $976K (up $392K with $280K write down of non-Y2K software). Direct impact on earnings; should be down in Q1 because of no charge. * $17.6 MM in working capital. $5 MM in cash. Two profitable quarters allows pursuit of traditional bank financing. * International business is accelerating. Europe is 6 months behind and Asia is more like 12 months behind. * TAVA, Beck, CMED will be in Washington, D.C. talking about embedded systems next Thursday. Overall, Federal Gov't spending picking up. * New product for Commercial Office Buildings with a near retail distribution channel. Another is in response to some clients request to check out the utility at the grid level. * "Momentum is business in accelerating not only in Y2K but in Y2K pull through" * Big ten year contract with a major telecommunications (?) company. * TAVA consulting off the ground. Alliance with i2 Technologies. Fairly strong response from AMR Research. Several million dollars in utility off a Y2K job. Signed some contracts. "Alive and well!" * Lots of acquisition possibilities ongoing. Couldn't comment much. replay: 800-633-8284 4725442