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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Skip_S who wrote (6281)	6/22/1999 1:34:00 PM
From: jmt	Read Replies (1) \| Respond to of 6931

Skip: Thanks for the heads up. Don does provide a forecast of revenues totaling $5M in the calendar year 1999 (ending dec.) This would project about a 20% increase per quarter to that point, but I suspect the revenues will be more weighted to the 4th quarter. The projected "42% margin" in the message is defined a before tax operating profit, which calculates to $2.1M, I suspect the company has tax loss carry-forwards to offset any tax liability, therefore this represents the after tax profit margin. Again using Don's forecast, the company would earn $2.1M, or 7 cents per share in that period. I assume he has considered additional depreciation resulting from the required investments in fixed assets, and the additional salary expense for new hires. In an earlier conference call (last year) Don projected a run rate for revenue of $3M per year in December 1999. That has proven to be conservative. That would add credibility to his current revenue forecast. The operating profit is more difficult to project, as it is not clear what the mix of revenue and related margins will be at that time, and the final pricing is not yet negotiated. With a price multiple of 12, the stock could trade close to a buck when the Jan 2000 quarterly numbers are released. jmt