Investors are smarting from disappointing sales of Ardes 2k, an electronic tutorial on year 2000 problems, which was billed as a must-have for companies and governments reprogramming their computers to understand dates past Dec. 31, 1999. The company's expertise of giving guidance isn't what is in demand, she said. Now, Data Dimensions is changing its focus. For the first half of 1998 at least, the company will concentrate on advising companies about methods for fixing year 2000 bugs, Chief Financial Officer Gordon Gardiner said. Ian Hayes, founder of Clarity Consulting, which also focuses on the year 2000, said Data Dimensions may suffer from questions of its viability.
Analysts also are concerned about the company's costs.
Data Dimensions' gross margin, profit divided by sales, in the fourth quarter slipped to 37 percent from 45 percent in the same period a year earlier. Gardiner expects the figure to be back above 40 percent this year. Consulting contracts continue to roll in. The company said Tuesday that it will work with Polaroid on year 2000 project management and reprogramming the computers that run the world's largest maker of instant photographic products. Data Dimensions hasn't given up on Ardes 2k, Gardiner says.