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To: Pierre-X who wrote (3967)	6/14/1998 2:12:00 AM
From: Yakov Lurye	Read Replies (1) \| Respond to of 16960

[SG&A growth vs. Revenue Growth] Pierre, You are correct in pointing out that SG&A expenses had grown considerably since 1Q97, but I am afraid you'd misunderstood my point. I said : "Large portion of SG&A costs is fixed, I would expect SG&A to go down as the percentage of revenues" This does not mean or imply that SG&A expenses will stay constant, simply that I expect them to grow at a slower pace than revenues. The 10Q data you'd been quoting seems to confirm that so far that has been the case: SG&A growth, 1Q98 vs. 1Q97 : 400+% Revenue growth, 1Q98 vs.1Q97: 900+% Regards, Y.