>><<gross margins ONSL is generating on its sales (i.e., it's like 10% and falling.)>>
Staggerlee, please post facts, not your opinion. Yes, their margins have fallen. But not below 10%. Get it straight, dammit.<<
Read before you get hyper, dude. My statement is factually correct. Q4 Gross margins were,like, 10% (i.e., plus or minus 1%, I don't have the figures here), and they are without question FALLING as a result of ONSL's changing distribution system, which involves taking ownership of stock prior to sale (which entails shrinkage, obsolescence, warehousing, cost of capital, and other risk factors that perhaps only we "bean counters" understand. You'll see GM below 8% by Q3 '98, I suspect.)
Show my the profitable pro forma P&L, man. I need a good laugh. |
