Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Information Architects (IARC): E-Commerce & EIP -- Ignore unavailable to you. Want to Upgrade?

To: Tech Master who wrote (8462)	10/22/1998 8:59:00 AM
From: NJ Investors	Read Replies (2) \| Respond to of 10786

Impact of hiring- If Alydaar hires 60 additional people as posted, what are the financial impacts. Since Gruder raises the infrastructure costs:60 employees and the building costs (new building interest expense and depreciation) or increased square footage, can we assume a $100K to 150K per employee for a increase of 6 to 9 million infrastructure cost? What is the lead and lag factor? As you hire and train before you generate revenues, there is an offset between expense and revenues. For those who are pessimistic, this suggests a substantial increase in the volume of business, well beyond the current capacity of the infrastructure. The alledged current capacity assuming 35 teams that optimally produce 1.5 million LOC per week has an output far beyond what is booked by the company. And the suggestion is additional hiring means additional business. Please test the assumptions and discuss the impacts and implications.