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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: airborn who wrote (13811)	3/17/1999 10:07:00 AM
From: JDN	Read Replies (1) \| Respond to of 13949

Dear airborn: Here's an interesting press release just out on the Dow Jones Newswire. Also, TAVA will be featured in an audio broadcast on audioinvestor.com this week. Check it out. JDN =Tava Technologies To Add Workers, Focus On Consulting 18:47:02, 16 March 1999 -------------------------------------------------------------------------------- Dow Jones News Service via Dow Jones By Tom Locke VAIL, Colo. (Dow Jones)--Tava Technologies Inc. (TAVA) Chief Executive John Jenkins said Tuesday that the company plans to add 200 more employees in 1999, increasing Tava's work force by nearly a third, to 850. One area of growth will be consulting, said Jenkins in a presentation at the 1999 Hanifen Imhoff Inc. Winter Conference here. By the end of 1999, Tava will have 100 consultants, compared with 15 today, Jenkins said. The Englewood, Colo., company, which specializes in information-technology solutions for the manufacturing sector, recently established a separate consulting division to get involved in the early planning stages of IT solutions for manufacturers. "We've had tremendous reception to this," Jenkins said. He noted that a number of companies have expressed frustration with their investments in enterprise resource planning software, and Tava has stepped in with solutions to enhance their ERP investments. Tava's emphasis on integrated enterprise solutions "from the factory floor to the boardroom" has had "incredibly strong market response," Jenkins said. Tava's clients have included heavyweights such as Coca-Cola Co. (KO) and Atlantic Richfield Co. (ARC). The company has picked up 450 new clients from Year 2000 work, which accounted for about 65% of business during its fiscal second quarter ended Dec. 31, Jenkins said. A March 8 report from Hanifen Imhoff analysts Russell Welty and Joe Magner said that a key question for investors is whether Tava can convert its Y2K customers to buyers of its manufacturing systems integration services. Welty and Magner said they think it can by expanding its consulting business, refocusing its marketing on core operations, introducing new products such as World Wide Web-enabled solutions, expanding geographically, and moving into other industries such as utilities and autos. The Hanifen Imhoff analysts are projecting Tava's revenue will grow to $122 million in fiscal 2000 compared with an estimated $108.2 million in fiscal 1999. They project earnings per share in fiscal 2000 of 75 cents. That compares with their pro forma estimate of 57 cents a share for fiscal 1999, which ends June 30, as if earnings were taxed at a comparable 35% rate for all four quarters. Their estimate for actual fiscal 1999 earnings, including the lower tax rates of the first two quarters, is 75 cents a share. Jenkins declined comment on analysts' estimates other than to emphasize his respect for the analysts covering Tava.