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Non-Tech : Telespectrum Worldwide (TLSP) -- Ignore unavailable to you. Want to Upgrade?

To: harryl1 who wrote (247)	10/15/1998 7:51:00 AM
From: Northern Marlin	Read Replies (1) \| Respond to of 265

Notes from the 10/13/98 conference call: This was TLSP's first "clean" quarter in a year (no one-time charges). The increase in revenue over the year ago and previous quarters was not expected. Outbound revenues are traditionally slower in the 9/30/98 quarter, and they'd just lost the NTC account (12% of revs) to begin the quarter. Outbound Business: Average Hrs Average Rev Per Month Per Hour 1st Q 98 360,000 $23.40 2nd Q 98 389,000 $24.52 3rd Q 98 410,000 $24.57 Mix of business stayed stable at 19% inbound, 75% outbound, & 6% other. But they are emphasizing longer term on inbound business. Mr. Alessi stated that he's said in the past that TLSP could operate at gross margins in the 17-20% range, "when run properly". Gross Capacity Margin Utilization 1st Q 98 5.6% 60% 2nd Q 98 9.6% 72% 3rd Q 98 14.2% 82% The CEO cautioned his audience that these improvements in gross margin can't continue at this rate. A/R grew for two reasons: The business was up 10% from the previous quarter, and NTC went out of business (their receivables are past due as of now). The quarter was basically cash flow neutral. Alessi expects the 12/31/98 quarter to have positive cash flow. They're implementing an Oracle database that is expected to operable in the 3/31/99 quarter. They hope to realize some MIS savings from this. I'll post my notes from the Q & A session later. Phil