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Technology Stocks : INTERFACE SYSTEMS (INTF) GETTING INTO EBPP? -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (545)	11/14/1999 3:31:00 PM
From: David H. Zimmer	Read Replies (2) \| Respond to of 1203

The information you request is critical and can be extrapolated, with some level of uncretainty remaining, from the data. That is what I am working on today. Overall however, on a quarter to quarter comparison, revenues declined 20%, costs of goods sold decreased by 36% thus the gross profit decrease of but 6% suggests a higher margin product mix. The increases in SGA expenses and R&D were well planned, i.e., Nero is managing this company with the utmost of fiscal responsibility. expect these categories to expand both this quarter and next as all efforts will be put into the "L2i" segment at the cost of positive earnings per share but not at the expense of EBITDA. The shift of the business matrix of existing clients is key with INTF. They have been able to sell their existing clients on using their new technology thus avoiding the extensive marketing costs which star-up firms will encounter. This will allow for extensive R&D expenses to take hold with new product and product enhancements that will keep existing clients while adding new ones. I'll probably be done with my breakdown by late tonight or tomorrow and will run the numbers prior to posting. Initially, I have believe the company will lose money for the next two to three quarters. Based upon my breakdownof revenues streams and applied gross margins, when it turns positive, increases in earnings per share on a quarter to quarter basis will be large enough to drive the price of these shares. Thanks for your words. I share your desire for more exact distribution of data. In doing my modeling I rely upon the breakout from TMWD to form my analysis as this is where I believe INTF is heading. Take a look at their year over year and see what you think.