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Biotech / Medical : GSII - GENERAL SURGICAL INNOVATIONS, INC.
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To: Dave Chapman who wrote (21)4/22/1997 3:31:00 PM
From: alex e. karczewski   of 211
 
Dave,

You asked an interesting question in #21:

<<I am curious about the move from "sales" to "guaranteed payments". Im sure it relates to the Ethicon agreement but how does it affect revenue next month?

When I read that, I viewed it as a "nomenclature" issue--the parties agreed to provide for a "guaranteed minimum sales" (or purchase) requirement (which is very normal) but one or both parties had an inside reason to call it by a different name. Tax reasons? Production/shipping reasons? There could be myriad reasons which I believe are irrelevant, unless it would obscure actual sales. But this should not be an issue since the transition guarantees don't last long and actual sales should be reported. In other words, it is my guess that the guarantees will not affect revenue next month.
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