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Technology Stocks : CyberCash a buy? -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (1942)	8/25/1998 6:22:00 PM
From: TLindt	Read Replies (1) \| Respond to of 3990

You know what I found extremely interesting when looking at this one as an opportunity for re-investment? Gross Margin. In what I looked at they never reported Gross Margin until Q 1 of 98...and it was like a 1.1 Million in processing Revs...1.065 Million in cost of processing...30K some in gross profit..close to nothing. Then Q 2 comes along and it was like 2.5 Million in processing Revs...1.6 Million in cost of processing...900K some in gross profit...??? Then from both the numbers 30K, and 900K subtract corporate stuff and you get the big losses which we all know are here right now... But what blew my dress up was this suckers ability to 'scale' the gross margin.....ie 1.4 Million more in Revs increased the margin nearly 800K and then some, not 50K like a fixed overhead operation...which tells me that every additional revenue dollars costs them less and less to produce. Can't draw a straight line using only 2 points...so this quarter is going to say bunches about this gross margin 'scale' factor. Anybody else see this or, am I alone on this one?