GSII - GENERAL SURGICAL INNOVATIONS, INC. Message Board

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Biotech / Medical : GSII - GENERAL SURGICAL INNOVATIONS, INC.

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To: Epics who wrote (161)	1/30/1999 5:32:00 PM
From: Lighthouse	Read Replies (2) of 211

I have not talked to the company yet so my comments are my own as well as my bias. Not a good quarter in my view. Without taking Guidant's business from them (via lawsuit) GSI cannot seam to get initial mass. Under $1M in revenue is a concept not a business. Salesforces are difficult to recruit, expensive to build and take time. The worst thing that could happen IMHO is if GDT decides to just pay a small royalty on their sales of balloon technologies to GSI. The ASP's of balloon products is low anyway so 5%, 10%, 20% of $300-$500 is not much. GDT has stated that they sell $60 M worth of balloon products annually. A 10% royalty on that is only $6 M or $1.5M per quarter. Nice, but that does not get you anywhere. Damages from GDT? I am unsure if this will fly. Onwership of the technology is good, but the cash balanes are now below $30M. Without "visible" staying power it gets harder and harder to recruit salepeople. I hear a clock ticking . . . . . . . .

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