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Technology Stocks : Command Systems, Inc. (CMND) -- Ignore unavailable to you. Want to Upgrade?

To: rainwater who wrote (335)	4/29/1998 4:29:00 PM
From: Allen Sampson	Read Replies (2) \| Respond to of 1956

DE.. You've got an interesting point regarding the sg&a expense in that some may view it as a bottom line growth opportunity for an experienced manager. I personally viewed it as a substantial expansion of their sales effort, and it seemed to me that a 54% growth rate in gross sales would have to correlate strongly with an increase in sg&a expense. Also, I am pissed off beyond belief at the behaviour of management subsequent to the public conference call. Just venting. regards Allen

To: rainwater who wrote (335)	4/29/1998 4:36:00 PM
From: Harami	Read Replies (1) \| Respond to of 1956

What is surprising is that CFO mentioned that their target for SG&A was between 26 to 28%. With US gross Margins of 28-30% and that high sg&a, how can they make money in US??? They have 250 people in US of which 73 (30%) are not billable. What the hell are these 70+ people doing??

To: rainwater who wrote (335)	4/29/1998 5:08:00 PM
From: Harami	Read Replies (3) \| Respond to of 1956

DE, This is what Hugh Shytle of Cowen wrote as recently as two weeks ago- "CMND provides technology services to insurance companies. It is capitalizing on two major trends, information technology outsourcing and the Year 2000 opportunity. Customers include market leaders Aetna, GE Capital, MassMutual, New York Life and more. The new offshore development facility should improve profitability as projects carry much higher gross margin (60-70%) than those done domestically. We expect solid, in-line Q1 fully-taxed EPS of 6› (vs loss) on revenue growth of 46%. - Hugh Shytle, 4/13 " I don't see their results much different that what he was anticipating two weeks ago. Revenue growth (54%) was more than waht he was expecting. Gross Margins in India are a little lower (55%) but certainly nothing that would cause it to cut the value of the company in half...