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

To: R. Bond who wrote (29028)	2/26/1999 12:22:00 PM
From: Karl Drobnic	Respond to of 31646

From Bond's post: "USPS said it will spend a total of $607 million to fix the Year 2000 problem. It recently reported that 70 percent of its 156 mission-critical systems are now compliant." The USPS has about 37,000 facilities. Of these, about 2000 are 20,000 sq. ft. or larger (= 2 US football fields). TAVA's engagement is initially for 200 sites. Figure these are the 200 most highly automated sites. Subtract these from the 2000 large sites, leaving 1,800 big sites. For symmetry's sake, figure each TAVA site feeds mail to nine of the big sites. TAVA previously told us that $1 of initial work brings in $9 of additional work. That makes two 1:9 ratios at work here, probably just a coincidence. So lets sell 200 CD tool sets to the USPS at $1,500 each. That's $300,000. Multiply by $9 and we get $2.7 million. Now we've got the mail on the loading docks at the 200 TAVA sites, ready to fan out to the 1,800 big sites. Staying with our 1:9 ratio, assume that making sure the mail goes and comes correctly requires 9 more hits to the data base per big site, but still chargeable to the CD tool sets sold to the 200 TAVA sites. That would be 9 x 1,800 = 16,200 hits. Let's discount for volume and call it $50/hit = $810,000. Add that to the $2.7 million and we're at $3.5 million, in the ball park of my previous estimate of $3.85 million using the CSC numbers. But the mail is only on the loading dock at the 200 TAVA sites, and if the 1,800 big sites want to get up to speed, they have to buy CD tool sets, too. This is again an academic exercise. It points to some very high margin income for TAVA since TAVA cannot field enough personnel to complete this huge task. So I'll estimate $1 million to TAVA's bottom line in Q4 from this contract, enough to add another $.04 to 1999 full year EPS. And maybe Q1 of 00 will bring in the next 1,800 USPS sites.

To: R. Bond who wrote (29028)	2/27/1999 6:38:00 AM
From: John Mansfield	Read Replies (1) \| Respond to of 31646

'Statement by JACK BROCK DIRECTOR GOVERNMENTWIDE AND DEFENSE INFORMATION SYSTEMS UNITED STATES GENERAL ACCOUNTING OFFICE before the SUBCOMMITTEE ON GOVERNMENT MANAGEMENT, INFORMATION, AND TEHCNOLOGY of the COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT U.S. HOUSE OF REPRESENTATIVES February 23, 1999 Ms. Chairwoman, Mr. Chairmen, and Members of the Subcommittees: Thank you for inviting me to participate in today's hearing on the challenges facing the U.S. Postal Service in addressing the Year 2000 problem. Although the Postal Service's main mission is to provide postal services to all communities, the processes it must employ to meet that mission make it among the most complex of the public entities we have examined. The Service employs nearly one third of the federal civilian workforce and provides delivery services for 650 million pieces of mail a day to over 130 million households and businesses. Its national network encompasses 174 processing and distribution centers, hundreds of smaller facilities, 34 air mail centers, 21 bulk mail centers, and nearly 38,000 local post offices, stations, and branches. Moreover, information technology is integral to every facet of postal operations--from sorting, processing and distributing the mail; to dealing with customers; accounting for and managing cash flows; communicating with business partners and other government agencies; and modernizing its facilities. ... house.gov