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Biotech / Medical : SNRS- Sunrise Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (3986)	8/8/2000 1:18:53 PM
From: Bruce L	Respond to of 4140

100,000 share block just passed at 8 7/32 which is 1/16 over ask!!

To: Bridge Player who wrote (3986)	8/8/2000 2:24:12 PM
From: WTMHouston	Read Replies (2) \| Respond to of 4140

If SNRS sells 200 machines in FY01, they get ~$40M in revenue. On royalties, 300 machines (100 in FY00 + 200 in FY01) at 15 procedures a week (7.5 patients) for 52 weeks @$200 for each eye = $46.8M revenue. Of course, these numbers assume that all 300 are running at that clip all year, which is unlikely. The $86.6M total is pretty close to what Lehman has predicted and yet Lehman only expects $0.18 EPS in CY01. It does not look like a very good net margin; at least not as good as I would have expected. With Lehman predicting only $0.18, I would be surprised to see anything anywhere near $1.00 EPS. I have not looked, but I also suspect that SNRS has some big losses to carry forward, which should make the tax bit substantially smaller for at least a couple of years. If they are in a very small tax position, then the $0.18 looks even weaker. I suspect that the $200K for the machine in not a profit item and may even be a loss item since it would seem that the royalty payments would be substantially all profit. When RK ramped up over a decade ago, many docs were doing 15 to 20 RK's a day, several days a week. This seems to have the same or better potential especially with the aging population. I wonder what effect this will have over the next five to ten years on the companies that sell glasses? Much of this is thinking out loud and others' substantive comments on the merits would be appreciated. Troy