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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: firefly who wrote (28638)	4/30/1998 12:50:00 PM
From: WHL	Read Replies (2) \| Respond to of 33268

** 3rd Q 1998 Earnings *** See my previous posts at: exchange2000.com exchange2000.com exchange2000.com The 3rd Q 1998 (end Mar 31, 1998) figure which gets put in for revenues is $700,000. The efforts to initiate BT! sales apparently were successful enough to make $350,000 in sales this quarter. During recent quarters, operating expenses were about $3M. This was dropped to $2M in the current Q. l.) $700,000 sales * .01 - the gross margin (before SG & A)= $7,000 2.) Subtract SG & A ($2.1M) Loss = $2.1M 3.)Tax rate 0%- see 10Ks 4.) Divide by 5.9M shares (gone up). 3rd Q 1998 loss was $.38 per share. My prior estimate was $.36. Although they dropped in revenues from the $2M expected, they did improve in the containment of costs from $3M in SG&A to $2M. These were not bad earnings. The burn rate has dropped significantly. Without added funding or sales, the company has at least 3 quarters ahead of it (assuming the planned additional financing can still be achieved). The SCREAMING BUY rating is once again reiterated on RACE. A loss of the total investment is possible- should RACE not succeed, but the risks are offset by the prospects of a 1000% (or greater) advance. (Still ONLY 6 million shares will exist even after the recent financing agreements).