Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ACCLAIM Entertainment -- Ignore unavailable to you. Want to Upgrade?

To: Donald Isenhower who wrote (2143)	6/18/1998 5:08:00 PM
From: Gerry Schechter	Read Replies (1) \| Respond to of 4149

Actually not a bad question at all- I think the answer is that if they were getting the cartridges from Japan they would be paying in cheaper $ because of the conversion rate and hence increasing their gross margins- The designer and I think manufacturer is Iguana, and I suspect they are an American Company-but I really don't know for certain. Gerry

To: Donald Isenhower who wrote (2143)	6/19/1998 6:54:00 PM
From: Donald Isenhower	Read Replies (1) \| Respond to of 4149

Gerry and Joe: Thanks for the replies to my question. One specific aspect I was thinking about (which I didn't state) was the cost for the royalty fees paid to Nintendo. The excerpt below from the latest 10Q states that the payments are to be in dollars, so the strong dollar is more likely helping Nintendo's profits unless they lowered their prices. By the way, the price schedule referred to has no prices listed. Donald --------snip-------(From AKLM's latest 10Q report) 6.3 Purchase Price. The purchase price to be paid by LICENSEE to NINTENDO for the Licensed Products shall be in accordance with NINTENDO's pricing schedule currently set forth in the attached Schedule 1. The purchase price includes the cost of manufacturing, printing and packaging the Licensed Products and a royalty for the use of the Licensed Intellectual Properties. Schedule 1 is subject to change by NINTENDO at any time without notice. 6.4 Payment. At the time an order is placed, LICENSEE shall provide to NINTENDO an irrevocable letter of credit in favor of NINTENDO and payable at sight, issued by a bank acceptable to NINTENDO and confirmed, at LICENSEE's expense, if requested by NINTENDO. The letter of credit shall be in United States dollars in an amount equal to the purchase price of the Licensed Products ordered. All associated banking charges are for LICENSEE's account. ------snip-------- (this appears near the end of the report)