Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! Message Board

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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE!

RACE 336.33

+0.9%

Feb 2 3:59 PM EST

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To: WHL who wrote (22718)	8/14/1997 5:52:00 PM
From: WHL	of 33268

WOW! MORE WOW! These numbers are terrific- GREAT EARNINGS! I never expected this. Ok. I know what you will post back to me. " Yeah, right, this is all hype and WHL- you am an idiot." Ok, here's the reasons: See the post next to my name above for my prior earnings estimates based upon what the company had told us. My prior revenue estimates were based upon Co. statements that the traditional modem business was winding down. So I assumed about $1M in modem and $1M in BT! sales. $2M gross revenues with an average margin of 40%. I was real close on the ratios- but way off on the total revenues. Recall that I estimated that traditional modem business has a 30% margin (unless for some odd reason it suddenly changed) and Be There! business has a 50% margin. Here we have a Quarter with a 38.6% margin ($1.358M / $3517M). That gives us a rough percentage of BT! sales at approx 43% (38.6 is 8.6 of the way from 30 to 50 and 8.6 / 20 = 43%). Now the wow part. The revenues are WAY higher than I expected. They totalled $3.517M. This gives $2.0M in modem sales and approx $1.5M in Be There! sales. Now you see why I say WOW! ? After that the earnings were as expected. Operating expense (what I have referred to as SG&A- but in truth it includes more than that) came in at $3.1M. My estimate was $3M. Subtracting Operating expense from Gross Profit of $1.358M- Net operating loss before taxes came in at $1.77M. My estimate had been $2.2M based upon a much smaller Gross Profit ($800,000). Taxes were nil as expected. Shares were 5.04M, I had used 5.0M. The resulting loss per share is $.35 (not the $.34 I had originally posted). So they had nearly twice the revenue that one would be lead to believe from their press releases. As best I can tell that includes $1M extra in modem sales and even $.5M extra in BT! sales. Congratulations- even John & mike!! It's time to party!!

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