OH JOHNNIE, OH JOHNNIE, OH JOHNNIE OHHHHHHHH!!!
Thank you for bringing levity to this thread. We appreciate your effort to entertain us.
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CD REVENUE POTENTIAL
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From: JDN Sep 22 2:46PM Reply #2929
Info nearly blew my mind.
In the 9/4 8-k, among other things, TPRO gives an estimate of the ADDITIONAL business they hope to pick up as a result of Wonderware and Square D alliance. They say 20,000-30,0000 units and $7,000 per and a 55% gross margin. Using 25,000 average at $7,000 comes to $175,000,000 @55% = $96,250,000. (ALL IN JUST 2 YEARS). Since this is ADDITIONAL business I suspect very low overhead attaches to it. Go read it for yourself. This is really impressive.
edgar-online.com
From: Jack Zahran Sep 22 3:09PM Reply #2931
55% Margin from labor aspect of additional services that the CD sale will generate. The actual margin for the CD is not mentioned. This means that on top of the CD sales, TPRO is expecting revenue from additional services that the CD will create. Too, no mention is made as to the revenue that will be generated from the sale of neww equipment.
The total profit generated from the CD will be greater than the margin of the CD. I also have a hunch that the Margin from the CD will be more than 55 %. Please re-read the filing and verify if my understanding of it is accurate.
edgar-online.com
From: JDN Sep 22 3:31PM Reply #2932
I reread the 9/4 8-k, very carefully. I agree the wording could be better for understanding. However, I tend now to believe that you are correct. This only makes it even MORE mindbogling. IMHO there is no possibility that the labor costs of CD's could even begin to approach 55%. A friend of mine who has a business that supplies CD's to upgrade legal departments libraries told me that once the software is first developed the cost, excluding sales commissions, for CD's is about $5. JDN
From: JDN Sep 22 3:31PM Reply #2932
I reread the 9/4 8-k, very carefully. I agree the wording could be better for understanding. However, I tend now to believe that you are correct. This only makes it even MORE mindbogling. IMHO there is no possability that the labor costs of CD's could even begin to approach 55%. A friend of mine who has a business that supplies CD's to upgrade legal departments libraries told me that once the software is first
developed the cost, excluding sales commissions, for CD's is about $5. JDN
From: Jack Zahran Sep 22 7:42PM Reply #2953
55% of additional services that the CD will create on top of the profit from the CD sale which I now understand is $5000 (71%). This is really positive. Management projects that this access may result in sales of 20,000 to 30,000 multi-part units at an average price of $7,000 each over a two year period. Services related to these projects , generally billed at $100 per hour with a direct labor gross
margin of 55%, are expected to generate additional revenue for TAVA.
From: JDN Sep 22 6:05PM Reply #2945
Go back and reread that 9/4 8-k. We got a 175,000,000 BONUS over the next two years PLUS I predict full capacity utilization of all the engineers they can lay their hands on. NO WAY am I SHORT term, even a little. (I'm too greedy, haha). Shots like this just dont come along that often.
John Jenkins, TPRO CEO, discusses CD-ROM
exchange2000.com |
