IMP, Inc. (IMPX @ 7 1/8)A sympathy play with IOM?? Message Board

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Non-Tech : IMP, Inc. (IMPX @ 7 1/8)A sympathy play with IOM??

IMPX 4.150

-11.3%

Nov 18 3:59 PM EST

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To: slob who wrote (2414)	5/20/1997 7:41:00 PM
From: Gary Strike	of 2560

OK, I'll go along with that but the revenue margin comments threw me: >>>>"Whats critical at the moment is that they expand the revenue base. This will work for them in two ways. First it will improve the margins and second it will make the engineering and management overhead costs look more attractive."<<<< Margins are in fact a fixed percentage of revenue. They are independent of the amount of revenue. IMPX's challenge is to get enough gross margin (Sales - Cost of Sales) to cover their overhead (engineering, etc.) and expenses. Anything left over would be called profit.....................someday maybe. Could just be your choice of words. I have yet to see overhead costs as attractive.

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