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Technology Stocks : DIGL... Digital Lightwave.... Making Waves.... -- Ignore unavailable to you. Want to Upgrade?

To: Mahesh who wrote (255)	1/16/1998 7:50:00 PM
From: Milkman	Read Replies (1) \| Respond to of 934

Mahesh, Thanks for stepping in here. I was going to reference the question to you since I was sure you had already looked at it in more detail than I had. That 67% was up from 62.1% in the previous 9 months. Excerpt from 10k: "Gross profit may be affected in the future by the introduction of new products which generate differing gross margins and by the sales mix during a given period. The Company plans to pursue Original Equipment Manufacturer (OEM) relationships with respect to the sale of Remote Access Agents. The Company has not negotiated any such arrangements but anticipates that its pricing to OEMs would be less than with respect to direct sales resulting in lower gross margins in connection with these arrangements. However, sales and marketing expenses are generally lower in the case of sales to OEMs. The Company believes that its operating expenses will continue to increase as a result of a variety of factors including: (i) increased research and development expenses associated with the completion of the products in development and the continued enhancement of existing products; and (ii) increased selling, general and administrative expenses associated with continued expansion of sales and marketing capabilities, product advertising and promotion. The Company recognizes research and development expenses when incurred." See, all the percieved negatives tie back to Marketing and Sales<g> Regards, Milkman