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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
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To: Karl Drobnic who wrote (17162)5/19/1998 9:40:00 AM
From: Gerald Underwood   of 31646
 
Karl,

Appreciate your analysis.

I would like to add one point which is probably incorporated in your view, but maybe not. In Jenkin's estimate of $8-10 mil in new orders for the May period, which I presume you are using for your basis, there was also a caution that this did not include the follow-on work. This follow-on work has already had the sales work accomplished thus would not result in appreciable new sales expense for follow on revenue. Given this I can certainly appreciate your view that sales expense ratio to revenue will most likely continue to improve.
IMO the synergies that have been created in the past months will start to come together for TAVA's bottom line benefit this quarter and next.
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