Wind River going up, up, up! Message Board

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Technology Stocks : Wind River going up, up, up!

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To: Peter Church who wrote (3255)	5/29/1998 10:47:00 PM
From: Michael Greene	of 10309

I am confused about something here. Are customer service and support going to add to margins or are they just a necessary cost of doing business? It seems that they may be the least profitable slice of WIND's business model. Peter, Service adds to revenue and earnings but reduces margins. The breakout that Ron Abelmann has given us in the past is that (in rough terms) the overall gross margin of 80% is composed of 90% gross margin on all license revenues and 60% gross margin on all services (engineering, support, training, etc.). I do not think that we have been given any finer breakdown than this. Michael

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