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Technology Stocks : CGRM Centigram

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To: David R who wrote (42)2/24/1997 11:58:00 PM
From: Cary Salsberg   of 333
 
David,

Gross margin was 59% which isn't bad, but SG&A was 38% which seems very high. It doesn't seem like they are concerned about current profits since they are investing 20% of sales in R&D along with the 38% SG&A.
18% R&D and 34% SG&A would have increased operating income from $259K
to $1.8M and probably would move the stock.

Cary
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