Common sense tells us that the market for TLC's products is increasing. We have Al Gore pushing computers into the furthest reaches of our society, with special emphasis on educational applications. We have the advent of DVDs which store much more information than CDs, making possible more extensive reference products, more sophisticated products in general, and interesting new marketing possibilities. Finally, the price of PCs has fallen dramatically to around $600 for systems ideal for use with TLC's products. Certainly these low-cost PCs are being increasingly bought and used in homes and schools with software such as is published by TLC.
PC Data reports also indicate that the market for TLC's products is increasing. For example, let's consider the total retail dollar sales reported for the Education, Reference, Personal Productivity, and Budget categories, since these include most of TLC's products. (At this point, we only have data through July.) For twelve months, year over year, the increase in dollar sales is 33%. For the Feb-Jul six months (the slowest sales period), year over year, the increase is 25%. For the Aug-Jan six months, year over year, the increase is 41%. Finally, for the Oct-Dec three months (the strongest sales period), year over year, the increase is 44%.
Based on these considerations, it seems reasonable to assume that 4Q98 is going to be very, very rewarding!
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