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Technology Stocks : Information Architects (IARC): E-Commerce & EIP

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To: Richard Haugland who wrote (2502)9/22/1997 10:23:00 PM
From: feltburner   of 10786
 
Richard, actually I believe the $1.60 eps could be made with revs. under $70mm in '98; the key assumption is that ALYD's current infrastructure (overhead) will need little addition to meet a revenue target of this size. If current operating expenses (at an $18mm run-rate) increase 50% to only $27mm, then oper. inc. of $43mm ($70mm-$27mm) taxed at 38% on 16.3mm shs. outstanding is $1.64 eps. Feel free to argue with the revenue or expenses figures, they are anyone's guess at this point; I would point out to those who don't believe in the co.'s operating leverage that in 2Q the co. increased revs. by $1.94 million over 1Q while operating expenses increased only $1.18 million. That's a 39% operating margin on the incremental revs., and they are not even at break-even yet.
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