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Non-Tech : Simula (SMU) -- Ignore unavailable to you. Want to Upgrade?

To: wally who wrote (753)	11/7/1997 9:39:00 AM
From: Noblesse Oblige	Respond to of 1671

Hi Wally, Average ITS cost per vehicle (assuming two locations for installation...the driver and passenger front seats) is approximately $ 50 - $ 60 per vehicle. What should be particularly noted is that this product also represents the highest profit margin item that Simula produces, with profit margins (once breakeven volume is achieved) quickly approaching 30% on the incremental business. Thus, $ 250 million in ITS volume is worth much more to Simula than $250 million in any other product line, and could well approach pretax income of nearly $ 70 million. ITS is the driving force behind Simula's business prospects. If the company is successful in signing several additional agreements following the new Standard 201 Regs, the stock will move sharply higher in anticipation of shipments irrespective of the transitional problems in 16G manufacturing efficiencies. Have a good afternoon.