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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Sir Auric Goldfinger who wrote (20058)	8/16/2000 11:35:52 AM
From: BWAC	Read Replies (1) \| Respond to of 21342

There you go again making broad based unfactual statements, based solely on a conveinent bottom line number. Look at the financial numbers, learn to analyze them, learn what they mean. Just a suggestion, Turn in the broker license and go get an accounting degree if you want to interpret what the financial statements say. "negative operating margins " On the surface correct, but in reality wrong. Why? Noncash amortization of Goodwill in the amount of $7 Million turned the operating earnings number from positive $2 Million to negative $5 Million. As I am sure you know, ALL companies report their earnings excluding the effect of goodwill and one time charges. "is chewing cash" Wrong. You have yet to respond to my prior post that explained this. "you're gonna make it up in volume!" Exactly. The profits will be made up on volume. Might I suggest a course titled Cost Accounting 101? As a professional I would assume you already understood that certain production costs are fixed in nature. These cost do not increase proportionately as production and unit volume ramps up. When the equilibrium point is reached profits can increase exponentially. For example: Note how revenues increased 400% + from June 1999 at $24 Million to June 2000 at $107 Million. Over that same period certain relatively fixed cost only increased by only 100%. Sales and marketing. 3,697 to 7,379 Research and development 3,597 to 7,438 General and administrative 3,240 to 5,664 So as you can see, as a professional of course, that if sales increase at 4 times those relatively fixed costs above: Profits will come. Profits will roll in.