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Technology Stocks : Identix (IDNX) -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (6403)	1/28/1998 6:59:00 AM
From: Elvis Jones	Respond to of 26039

Did you notice? SG&A to Sales keeps dropping? For the quarter it was only 21.9% (down 35.9% from one year ago). For six months, it is 23.2% (down 25.9%). Ok, for six months we have a drop in Gross Margins ("GPM") from 36.4% to 31.3% (down 13.9%). This is directly attributable to the shift in revenue streams focused more on services (now 55% of revenues) and their GPM dropping from 22.6% to 15%. Still service revenues jumped 93.2% in the six-month period vs. last year. This allowed IDX to report a Operating Imcome of 985,000 vs. 16,000, which strengthens the company. It looks to me that there is a lot of disappointment here. IDX didn't get Cook County in Q2 (but it did in Q3). IDX only earned 2 cents (not as rosy as hoped but better than nothing, which was last year). To me, service revenues are giving us something not found in other biometric companies (positive operations). Look at it this way, at least we're eating while the cake gets iced! Yum! Happily Long IDX, Duke