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Technology Stocks : GTIS: Is there a better bet for Christmas sales?
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To: RJC2006 who wrote (92)11/26/1996 11:29:00 AM
From: Jim Fisher   of 432
 
GTIS will make $21/unit YES- THATS A SELL PRICE TO RETAILERS AT $32 AND PAYING DEVELOPER 35%, NOT JUST 20%, AS I STATED ABOVE, THE BEST WILL GET THAT ROYALTY.
less ad costs etc. Developer is getting their cut of 20% from the publisher's sale price to retailer of $32.

IF 600,000 are sold then
how is it that GTIS will only make 9.3 million minus ad costs?? BECAUSE GTIS HAS TO PAY FOR COST OF GOODS, ESTIMATD IN SOFTWARE AT $4.00 PER UNIT. 600k @$4.00 EQUALS $2.4MM OUT OF GTIS'S GROSS OF 11.7 MILLION (65% OF 600k@30...AH HA, I SEE MY ERROR, I USED $30 PER UNIT NOT $32) SO;RECAP; 600K@$32 GIVES US GROSS OF 19.2MM, 35% TO DEVELOPER AND $4EA@600k FOR COGS YIELDS GTIS GROSS MARGIN DOLLARS OF $10.08MM.

Sorry about my price error, hope that helps.
Jim
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