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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: JerryP who wrote (12481)	12/28/1998 3:19:00 PM
From: Don Earl	Read Replies (1) \| Respond to of 14577

Hi Jerry, I think the SEC is requiring all companies to include Y2K risks in their filings now. This is from Q3 10K: <<<YEAR 2000 COMPLIANCE As a result of computer programs being written using two digits, rather than four, to represent year dates, the performance of the Company's computer systems and those of its suppliers and customers in the Year 2000 is uncertain. Any computer programs that have time-sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, send invoices, or engage in other normal business activities. The Company's plans to address the Year 2000 issue involve the following phases: (i) inventory/risk assessment, (ii) remediation, (iii) testing, and (iv) full compliance and/or the creation of contingency plans. The Company has completed an inventory and assessment of its systems for Year 2000 readiness. The assessment indicated that most of the Company's significant information technology systems could be affected, particularly the general ledger, billing, and inventory systems. That assessment also indicated that software and hardware (embedded chips) used in development, production and manufacturing systems also are at risk. Based on a review of its product line, the Company believes that its products do not require remediation to be Year 2000 compliant. Accordingly, the Company believes that the Company's products will not expose the Company to material Year 2000 related liabilities. The Company has also queried its significant suppliers and subcontractors that do not share information systems with the Company ("external agents"). Although the Company is not aware of any external agent with a Year 2000 issue that would materially affect the Company's results of operations or financial condition, the failure of an external agent to be Year 2000 compliant could have a material adverse effect on the Company's results of operations or financial condition. The Company intends to periodically review its external agents to monitor their progress toward completion of their Year 2000 compliance. The Company is implementing the remediation and testing phases of its Year 2000 program. To date, the Company is approximately 80% complete on the remediation phase for its information technology systems and expects to complete software reprogramming and replacement in the first half of 1999. Once software is reprogrammed or replaced for a system, the Company begins testing and implementation. These phases run concurrently for different systems. To date, the Company has completed approximately 25% of its testing. Completion of the testing phase for all remediated systems is expected to occur in the first half of 1999. The Company's order entry system interfaces directly with significant third party vendors. The Company is in the process of working with third party vendors to ensure that the Company's systems that interface directly with third parties are Year 2000 compliant by the third quarter of 1999. The Company will utilize both internal and external resources to reprogram, or replace, test, and implement its software and operating equipment for Year 2000 modifications. The Company believes that costs for remediation, testing and implementation are immaterial. The Company currently has no contingency plans in place in the event it does not complete all phases of the Year 2000 program. The Company plans to evaluate the status of completion in January 1999 and determine whether such a plan is necessary. The failure of either the Company's critical systems or those of its material third parties to be Year 2000 compliant would result in the interruption of its business, which could have a material adverse affect on the results of operations or financial condition of the Company.>>> It looks to me like they'll have to up date their networks but their products are OK. Interesting point though. I wonder if Reuters will be running a bunch of end of the world articles on Y2K around the fourth quarter next year. Might be a good time to hold back some cash. Happy New Year. Regards, Don