Sigmacor Inc.(SIM-ASE) Message Board

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Gold/Mining/Energy : Sigmacor Inc.(SIM-ASE)

SIM 28.40

+3.0%

11:46 AM EDT

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To: Dave Markley who wrote (8)	6/9/1998 11:00:00 AM
From: Mike Dillon	Read Replies (1) of 17

Dave: Thank you for your interest in Sigmacor. The selling price of the GAS MICRO is $805 US without communications (modem hardware). Our gross margin exceeds the current margins of PC computer manufacturers by over 100%, this is calculated without the effects of scale economies. However, it should be noted that SIM's entire business model has been developed to support flexible manufacturing and "late customization". Ultimately this means that we can support the specific needs of each customer and do not need to produce runs of 1000's to reach our margin objectives. In respect to the proforma budget, we are completing the final revision this week and will be ratifying all operating budgets. I can tell you that our initial efforts have indicated that bottom line earnings are forecasted in 1999. However, it should be noted that significant investment in expanding North American and World markets is a priority. Further, we will continue to evaluate possible acquisitions that exhibit significant synergies with our core business. I can tell you that the next 6 months will prove to be very exciting for our young technology company. We have been working very hard to lay the foundation for the commercialization of the products. Distribution is in place and constantly being improved. We have suitable manufacturing capacities to the end of the calendar year and are evaluating additional opportunities to add capacity. Further, we are well capitalized and have been assembling a very strong management team. Please do not hesitate to contact our offices if you have any further questions. Sincerely, Sigmacor Inc. Mike K. Dillon, Vice President & COO

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