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To: Pierre Panet-Raymond who wrote (9841)	8/19/1998 11:24:00 AM
From: Mad2	Respond to of 11098

Thanks for the link.

To: Pierre Panet-Raymond who wrote (9841)	8/19/1998 4:28:00 PM
From: Pierre Panet-Raymond	Read Replies (2) \| Respond to of 11098

Further to my post of this morning, here is the material from the 10Q which describes the reasons behind the lower margins. The reduction in the gross margin on product sales to 31% for the second quarter of 1998 as compared to 38% for the comparable period in 1997 resulted primarily from the reduction in sales of the Company's Direct Imaging systems to Heidelberg for the QM-DI, as well as increased sales of lower margin vacuum deposition coating equipment and specialty custom presses.