To: JDN who wrote (26462 ) 1/10/1999 5:36:00 PM From: Karl Drobnic Read Replies (4) | Respond to
I agree with JDN. I'm looking for $.25 for the 12/31 qtr., and am hoping that the Mangan acquisition won't be a bad influence. I heard that Mangan included $1 million cash, which TAVA should be able to handle easily from cash flow. I think it's too early to count on money from MEP since the training seminars for the MEP field agents were scheduled for January. However, I think the database hit fee is in the $60-$70 range. This is almost pure profit for TAVA since MEP is doing all the billing and forwarding the cash to TAVA. It is possible that TAVA could get the check for the MEP site-CD's into the 12/31 report. If so, TAVA could get a fat $4-6 million boost in revenues from that. There's also the unknown about Mangan revenues. TAVA was going to deploy Mangan teams to the "booming" Houston office. But if the deal is not concluded, were they deployed? If they were, how will TAVA recognize the revenues? So there is room for wide differences in estimates. There is a real chance for TAVA to score an upside surprise, but betting on TAVA having received payment for the MEP CD's in the quarter is probably unrealistic. The govt. is usually slower in paying than faster. The positive case would be that since the MEP training seminars were scheduled for January, MEP may have needed the CDs in advance, and TAVA could possibly have required payment by 12/31. So I'm assuming the Y2k and base businesses are going full tilt, the Tava/Beck subsidiary is going to provide more recognizable gains, the CMED/Tava alliance is going to kick in a few cents, and TAVA consulting is going to make a small contribution. Then I'm hoping MEP paid the CD fee, which would be a kicker that would boost EPS above $.25/share.
