To: David W who wrote (2945 ) 6/30/1998 10:34:00 PM From: R. Gates Read Replies (1) | Respond to
David, in general the way I understand it, each "user" of TSIS services generates a charge that the client pays to TSIS. For example, a each time a shareholder of Seagate calls in, TSIS gets paid some fee. In addition, there are the ongoing maintenance fees and the start up fees. Bottom line, the larger the number of shareholders or potential "users" a company has, the more the contract is worth. That's why the pending INTEL contract is so big-- lots of shareholders! Revenue projections are difficult to make until TSIS has a bit more of a history, because all the big client revenues are just now, or soon to be, coming in for the first time. I can tell you that TSIS has projected a doubling of revenue from the GTE contract alone, and there have been several other big contracts announced since then. Right now, even TSIS folks aren't sure exactly how much they'll be making from each contract. But, based on what they did in April (their first profitable month) you can rest assured that TSIS is going to be very profitable. We are very very early on in the game with this young company. Even though some on this thread have been in TSIS over a year, the company is still unknown to 99.9% of investors who might be likely to invest in a company like this. This thread actually exaggerates each of our perceptions of how much TSIS is even known on the "outside world".
