#: 11236 S15/Hot Topics
    28-Jun-91  16:16:51
Sb: #11166-MM/1 delivery
Fm: Paul K. Ward 73477,2004
To: Jim Peasley 72726,1153 (X)

Jim,

You misunderstood my numbers, but they are not far off. Still, as I told you on
the phone, we ship out approximately in the order that we received the orders.

The variables that go into shipping are exactly these, just so you don't think
I'm keeping anything from you:

Who ordered what When do we receive cables for floppies, parallel ports, etc.
When are the modified cases ready Cash flow for that week When quantity
purchases need to be made Man power assigned to a given day

Once these factors are considered, a schedule is set up. When gaps occur,
simple to assemble kits are inserted from folks who ordered later. That means
that, in a given month, like June, we have approximatedly 10% of the folks
being shipped out that ordered somewhat later (like a few weeks later) than
folks who ship out in early July. The difference is only a few days.

We work three people around the clock to get these systems out. Each system,
with case and two board set, manuals, cables, boxing, labeling, and shipping,
takes approximately four hours. Others take longer when we go throught
inventory for extra drives, hard drives, custom cables, monitors, keyboards,
and so on. It is very complex.

No one here at IMS is holding you up. Data has been fluid as we have been
handling literally thousands of details.

Incidentally, ALL computer companies experience delays. Compaq recently told a
major customer that they were unable to ship for three months. Reason? Memory
chip availability at the price they wanted. In other words, they were pinching
dimes and holding up big customers. At least IMS doesn't do THAT!

Please do stay in touch at 202 232 4246. We'll tell you exactly what we know,
and what we cannot know, and we will tell you the day your kit ships.

Yours truly,

Paul Ward

IMS