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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?


To: crc who wrote (12473)3/11/1998 9:26:00 AM
From: crc  Read Replies (3) | Respond to of 31646
 
Correction due to calculation mistake. The numbers could potentially be even better!

Could assessment phase of Coca-Cola mean $17 million in gross profit to Tava?

Here is how I arrive at my numbers -
First of all, we know from Coca-Cola's 10-K which was released on 3/9/98 that, "In 1997, net sales of concentrates and syrups by the Company to Coca-Cola Enterprises were approximately $2.5 billion, or
approximately 13% of the Company's net operating revenues."

From Coca-Cola Enterprises website, we also know CCE owns 310
facilities. cokecce.com

If it takes 310 facilities to generate 13% of Coca-Cola's revenue, one
can extrapolate it takes 2400 facilities worldwide to generate 100% of
Coca-Cola's revenue. Just to be on the conservative side, let's say
1,000 facilities end up purchasing Tava's CD.

Therefore - 1,000 facilities x 20,000 CD cost per facility x 85 percent Gross Margins = $17,000,000 in Gross Profit for Tava.

Remember, this $17 million figure doesn't even include
possible remediation work done by Tava. At this point in
Tava's history, estimates of $0.81 look rather low to me.

Fair conclusions?

Chris