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Strategies & Market Trends : Attitude Small Stock Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Sidney Reilly who wrote (197)	11/17/1997 6:11:00 AM
From: Zvi Yammer	Read Replies (1) \| Respond to of 385

Bob, I think that the merger would eliminate many expenses that PHRX now has. Enough to virtually garuntee profitablity at the current run rate. 1st a reduction in rent. 2nd a reduction in manufacturing costs. PHRX presently outsources all its boards this production would stay in house and be performed by I-PAC. I-PAC has the physical and human capacity to take this on without requiring anything but a minimal increase in expenses so most of the mfg. costs (overhead, labor) already exist in I-PACs fixed costs. 3rd. Ability to bring products to market sooner. I-pac has a test and prototype facility. 4th. Ability to ramp up sales. Overall, PHRX can come to market with the best technology and will soon be able to offer it at a reduced rate. As sales start to grow PHRX will be able to ramp up and meet the demand, something they woul dnot be able to do by outsourcing. FInally, PHRX will have the design and mfgr capacity to take their technology and possibly shrink it down to the desktop market. This is all conjecture on my part. But, over the past 6-9 months PHRX has proven to be capable of operating on a shoe-string budget. They have made key agreements with resellers to market their product. Their product has been recognized as an award-winner. The soon to be released 200-PPM scanner will be the industry's fastest. And now they've made a stragtegic move that creates more growth in a symbiotic environment. I would say that they are on the right track and at 75 cents worth the ride. regards, zvi