Net Perceptions, Inc. (NETP) Message Board

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Technology Stocks : Net Perceptions, Inc. (NETP)

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To: rupert1 who wrote (2711)	8/15/2000 4:44:54 PM
From: J. Conley	Read Replies (2) of 2908

Victor, Why is the company saying, "lower than planned utilization" of consultants and at the same time (in the same sentence) saying that they had increased costs for "...third-party contractors used to staff consulting engagements"? And how does this jibe with the next sentence in which they state they expect to increase spending to "...expand our service capacity to meet anticipated demand"? I don't know how to interpret these comments, and frankly don't understand it. I certainly do agree that the cost in this area appears very high as a percentage of the related revenue. Is it too high given the development stage of the company, or not? Also, given the context, could the under-utilization statement not necessarily mean lack of demand but be attributable to some other issue? I bought NETP last week. Any comments welcome.

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