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Technology Stocks : Microprose, MPRS

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To: Charles Hughes who wrote (244)2/14/1998 6:36:00 PM
From: Coy Lynn Gullett  Read Replies (2) of 633
 
<<<With productions costing 1-3 million dollars any more, plus marketing costs and so forth, break even is probably a couple hundred thousand units +- 50%, not counting share of company fixed costs, commissions, admin, and so on. Do you agree?>>>

Here is the model I use to figure expenses/profit for MPRS

Operating Expenses on Average=$14-$15 Million
Cost of goods sold = 35-50% of sales with normal margins.
(Last qtr cost of goods where 69% 3rd party titles.)

The model above has a break even at 25 million. with 2-3 cents in earnings for every one million over $25 million.

Estimating..
They gain about $3-$4 million a qtr from distribution
(examples Expert Software in England,Broderbund and 3do in certian Europeon territories )

Licensing/OEM I would estimate about $1-$2 million a qtr
could go up from the sound of the conference call..
examples Macsoft,budget

20 million that left needs to be made up of
current qtr releases
back catologe (reorders)

Coy


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