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Technology Stocks : Net Perceptions, Inc. (NETP) -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (2555)	7/25/2000 11:11:10 PM
From: rupert1	Read Replies (2) \| Respond to of 2908

Carl R: R&D as a percentage of sales dropped from 72% a year ago to 39%. It is not a considered policy to have that high a percentage - so I think that it does not have the implications you suggest. It is high because revenues are low - quite a difference from saying it is high because the company had decided that 39% is the correct level. As the company hits its stride and its salepersons and ASP's and new products start leveraging sales, then the revenues will grow to a more healthy ratio relative to expenses, in general. Part of that picture will be R&D. I would think it will continue to drop as a percentage of sales quite sharply for several more quarters. I might have suggested that you will say that this is what you said (odd sentence that!) but then you will accuse me of putting words in your mouth. Had I said that and had your replied in that way, then I would have responded that it is really quite different to say that the company is spending X amount of R&D and therefore it must be expecting X increase in sales and saying that the company is spending on R&D what it needs to spend and it is such a large % of sales because the company is still a start-up. (You see you should have let me put words in your mouth and I would have avoided such a complicated sentence). I hope you realise I am joking.