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Technology Stocks : Echelon Corporation (ELON) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1971)	4/30/2000 8:30:00 PM
From: spiral3	Read Replies (1) \| Respond to of 3076

Zeev, your 42% GP% figure is incorrect. As per the latest quarterly report. Gross margin for the quarter ended March 31, 2000 was 58.4%, compared with 57.9% for the same period in 1999. biz.yahoo.com Also, GP% for y/e '99 was 60.2% compared to prior year GP% of 54.6%. Not only is your GP% incorrect, but in fact GP% is in an upward trend.http://biz.yahoo.com/e/000317/elon.html they have kept their product development and SG&A costs almost constant from last year, which to me indicates a company in decline not on the rise imo this is fuzzy logic if ever I saw it. If you had looked at qrtly results since Q1'98 you would see that SG&A has fluctuated very little on a qrtrly basis, while in fact revenues have been steadily climbing...(except for a larger increase in sales expense and a decrease in G&A in 4Q'99, when revs were at their highest). To me this suggests prudent management and remarkable internal efficiencies. Furthermore the increase in the rate of revenue growth over this time is evidence of a growing business, not a sign of one in decline. Do you really think that Cisco, Sun, Msft etc would be partnering with Echelon if the company was in decline? Membership in the LonMark Organization is growing at record rates. No key Insiders have left and Rock and Markulla (sp?) continue to serve on the Board. Echelon's new Corporate Headquarters is under construction and they will be moving to these new facilities in June/July of next yr...must be because business is winding down huh. BTW their rent in these new, larger, premises will be less than half of what they're currently paying... Do these factors suggest a company in decline as you propose With all due respect your posts here have revealed a distinct lack of understanding of Echelon. I know that you are an experienced market participant and are quite capable of doing proper DD should you so desire. I don't have a problem at all with anyone not wanting to own this stock or with a statement of opinion. I do have a problem with posts containing factual misinformation, especially when the truth is easily verifiable.