Y2K Work Slackens

The year 2000 is still a year away, but computer service companies addressing the Y2K problems of their clients are already finding work is tapering off.

Newport Beach-based Data Processing Resources Corp., which last week reported record earnings that beat Wall Street forecasts, said revenues from Y2K remediation services fell as a proportion of overall sales.

“Some of our clients are completely done; they’ve finished the testing and are in good shape,” said Mary Ellen Weaver, chairman and chief executive. “Companies as a whole, especially Fortune 1000 companies, have done a relatively good job of getting their Y2K conversions completed.”

Last quarter, Y2K work made up 10% of revenues after peaking at 12%, Weaver said.

That doesn’t mean the economy has dealt with the problem successfully, however. Even if a company has inoculated itself against the Y2K bug, it can still be damaged if the companies with which it works have not eliminated Y2K glitches.

“Small and middle-market companies haven’t tackled the problem or aren’t as far along,” Weaver said.

Those that have dealt with it, however, are now moving on to other information technology projects they had put off, meaning computer services firms such as Data Processing Resources will continue to have plenty of work.

Jonathan Gaw covers technology and electronic commerce for The Times. He can be reached at (714) 966-7818 and at jonathan.gaw@latimes.com.