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Technology Stocks : AMERica on-Line, Another over valued company?

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To: Art Stone who wrote (212)8/12/1996 11:13:00 PM
From: Jeff Olson  Read Replies (1) of 222
 
Art, make that a loss of (.23) vice (.38)
You are correct in that my assumptions are based on all other revenue and costs at AOL remaining static. However, I went back and changed the numbers in the spreadsheet to reflect percentage increases in costs, revenue, and subscriber subscriptions. I got this info from the financial data given at the Wall Street Journal web site (www.wsj.com - it's free for the first month, great info). I made the following changes to more accurately reflect future income:
Increase subscribers by 350,000 to 6,550,000 (in the quarter ending in June, AOL added only 350,000 new subscribers).
Increase costs by 5.05% (this is the % increase from Apr to Jun qtrs)
Increase other revenue by 16.52% (same reason as above)
Other costs remained the same minus the $5 million they paid in legal fees and plus $2 million to pay for one day blackout (i.e 6.2M*(9.95/31)).
These changes still produced a loss for AOL in next qtr of (.23) a share. AOL would need to come up with an additional $25 million in rev and cost savings just to break even. Can't wait to see the numbers for next qtr, they should be very interesting.

If you would like a uuencoded copy of the Lotus 123 spreadsheet, send me an e-mail at jolson2@ix.netcom.com.
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