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Technology Stocks : America On-Line: will it survive ...?
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To: grogger who wrote (61)8/19/1996 5:51:00 PM
From: Richard Query   of 13594
 
Rob here are some more bad figures for AOL to deal with in the 3rd
qtr.
cost to bottom line for one day outage.
6.2mil customers times $.30 = 1.86 mil or 12%+ of last qtrs earnings
assuming 5% heavy users (AOL's number see previous post for figures)
ave. 27 hours month lost billable time works out to
.9hrs * 6.2mil * 5% * $2.95 = 823k

so total cost for the one day outage is around 2.7mil & 17.7% of the
second qtrs net earnings. Add to that the hidden costs such as lost
customers, lost faith, cost to repair problem and the number probably
come closer to 25%.
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