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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (27656)	6/26/1998 5:31:00 PM
From: Joe NYC	Read Replies (2) \| Respond to of 33344

Paul, One particularly cool thing about MediaGX is that every part sold means more money lost for Cyrix/NSM. I know you like repeating this, but I know that you know that it is really not that simple. You have fixed and flexible costs. The question is: How much does it cost to produce additional unit. This cost is small. It could be or $15 on a CPU that sells for I guess $40. Let's say the "profit" per CPU is $25. But if it cost 100 million to develop MediaGX and Cyrix sells 2 million, the revenue is $80 million, cost is $130 million. Loss is 50 million. Bot on 10 million sold, the cost is $250 million and the revenue is $400 million. The resulting profit would be $150 million. Joe