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

To: TEDennis who wrote (26062)	12/31/1998 5:37:00 PM
From: RAVEL	Respond to of 31646

TAVA MENTIONED... DENVER (Dow Jones)--Accler8 Technology Corp. (ACLY) shares increased 55% Thursday on heavy Nasdaq volume, and one analyst said the rise was part of a New Year's Eve-induced surge in stocks of companies solving Year 2000 problems. "I think that it's getting some favorable treatment here because of its association with stocks that are Year 2000 players," said Alex Arnold, an analyst with H.C. Wainwright & Co. in Boston. Arnold said there has been substantial recent publicity about Year 2000 problems "on CNBC and various other places." New Year's Eve has particularly brought the problem to the forefront, he said, because Jan. 1, 1999, has been a key deadline for many companies to have their computer systems freed of Y2K bugs and for testing to begin. But many have not met that deadline, he said. Other Y2K stocks were up Thursday, including Data Dimensions Inc. (DDIM), up 10%, Tava Technologies Inc. (TAVA), up 11%, and Mercury Interactive Corp. (MERQ), up 7%. Arnold also noted that many of the Y2K stocks have been hurt by concerns about their transition from Y2K business to new business after the year 2000, and recent increases are coming off of prices discounted because of those concerns. He noted that Accelr8 has its non-Y2K business of helping customers migrate from a Digital Equipment Corp. environment to a Unix or Windows NT environment. Digital Equipment was acquired by Compaq Computer Corp. (CPQ) in June. James Godkin, controller at Accelr8, said he didn't know why the stock was up Thursday and that the company doesn't have any announcements that would cause the rise. He speculated that perhaps all the tax-related selling of the stock is over. He noted that the stock is "way down this year." Indeed, Accelr8, which gets most of its revenue from selling software to solve Year 2000 problems, has seen its stock drop to less than one-sixth of its year high of 28 1/4 that it reached in February. The reason for the drop? "Basically, at this point, we're in the Y2K solutions business and the last two quarters, sales have been very hard to come by. So our earnings have been down," Godkin said. For the company's first fiscal quarter ending Oct. 31, Accelr8 reported earnings of $79,500, or 1 cent a share, on revenue of $728,500. That compared with earnings of $868,200, or 11 cents a share, on revenue of $1.6 million for the year-ago quarter. Godkin said the company expects panic buying in 1999 to ensue as time shrinks for fixing Y2K problems. Accelr8 shares were up 1 13/16, or 54.7%, at 5 1/8 on volume of 1.4 million, compared with average daily volume of 133,300. - Tom Locke; 303-293-9294 (END) DOW JONES NEWS 12-31-98