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

To: Robert F. Newton who wrote (29973)	4/1/1999 10:20:00 PM
From: Manzanillo	Read Replies (1) \| Respond to of 31646

We are not alone!! If CHRZ is expected to earn $1.41 and is selling at $10, there is not much hope that TAVA will trade at double digits any time soon. Dow Jones Newswires Computer Horizons Diversifies As Year-2000 Demand Wanes By MARIA V. GEORGIANIS Dow Jones Newswires NEW YORK -- Computer Horizons Corp. (CHRZ) is beefing up its non-year 2000 operations as the need for Y2K services quickly falls off, Chairman John Cassese told Dow Jones. Earlier this year the computer-services company reorganized its management team to shift its focus toward more promising areas as the new millennium fast approaches. Based on its falling share price, investors seem to believe Computer Horizons has a lot to prove in making a smooth transition to new revenue streams and that it won't be until the new year that it's strategy adds to profits. Computer Horizons' stock, which closed Thursday at 10 1/2, down 4%, is near a 52-week low of 10 1/16 set March 19. The share-price decline is an overreaction to the idea that the company won't be able to replace its year-2000 revenue, said Cassese, who remains confident despite the challenge of the transition. Still, the bulk of the company's 1999 revenue - estimated at $620 million to $630 million - remains in its more traditional businesses of staffing, application outsourcing and its declining year-2000 services. When the company reported its year-end results Feb. 16, it lowered its 1999 earnings per-share guidance by about 16% and reduced operating-margin goals below 1998 levels because of the challenges ahead. Computer Horizons reported 1998 earnings of $1.42 a diluted share, excluding one-time items, on revenue of $514.9 million. The consensus estimate for 1999 is $1.41 a share, according to First Call Corp. The company's 1999 revenue growth is targeted at between 22% and 25%, well below 1998's 47% growth rate. But the company isn't alone. Many computer-services stocks have suffered in recent months as firms have found themselves in businesses where demand has fallen off and they haven't moved fast enough to new areas. Chairman Sees Growth In Internet Services, Networking Helping companies develop Internet-related strategies to conduct business with their customers, network services and software for customer-relationship management are the key areas that the company will be emphasizing, Cassese said. When the company reports its first-quarter results April 20, it plans to detail its revenue into two main areas: emerging practices and information-technology services. Its emerging-practices group will include Internet services, networking, customer-relationship management, enterprise-resource planning, software consulting and product sales. Cassese pegs total emerging-practices revenue at $100 million for 1999, more than doubling last year's $40 million. Computer Horizon's IT services, including North America and international revenue, are expected to increase to $460 million, up from $336 million last year. The company's revenue from its year-2000 practice is expected to decline to $60 million from $136 million in 1998. Computer Horizons, in Mountain Lakes, N.J., hopes to close an acquisition over the next several weeks that will enhance its Internet-services capabilities, Cassese said. The executive estimates that Computer Horizons can do $15 million in this area, which it refers to as its e-business practice, in 1999. The company's networking-services group, which focuses on the design of large-scale networks, is budgeted to do $35 million this year, up from $11 million in revenue last year, Cassese said. Computer Horizons entered this market last July with its acquisition of RPM Consulting. Customer-relationship management is another new area the company is entering this year, with a focus on software from Siebel Systems Inc. (SEBL). Cassese said he expects this service to generate $10 million in 1999 revenue.