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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: zsteve who wrote (24444)	9/20/1998 1:37:00 AM
From: Katherine Derbyshire	Read Replies (2) \| Respond to of 70976

The following is from CPQ's most recent 10Q. Note that gross margin on product sales dropped by 10%. Original source: edgar-online.com Katherine RESULTS OF OPERATIONS The following table presents, as a percentage of revenue, certain selected financial data for the three- and six-month periods ended June 30, 1998 and 1997. SIX MONTHS, QUARTER ENDED ENDED JUNE 30, JUNE 30, --------------- --------------- 1998 1997 1998 1997 ------- ------ ------- ------ Revenue: Product sales . . . . . . . . . . . . . . . 95.0% 98.0% 92.1% 98.0% Service revenue . . . . . . . . . . . . . . 5.0 2.0 7.9 2.0 ------- ------ ------- ------ 100.0 100.0 100.0 100.0 ------- ------ ------- ------ Cost of sales: Cost of product sales . . . . . . . . . . . 78.2 71.2 75.6 70.7 Cost of service revenue . . . . . . . . . . 3.3 1.4 5.4 1.4 ------- ------ ------- ------ 81.5 72.6 81.0 72.1 ------- ------ ------- ------ Product sales gross margin. . . . . . . . . . . 16.8 26.9 16.6 27.4 Service sales gross margin. . . . . . . . . . . 1.7 0.5 2.4 0.5 ------- ------ ------- ------ 18.5 27.4 19.0 27.9 ------- ------ ------- ------ Selling, general and administrative expenses. . 15.9 12.1 18.0 12.2 Research and development costs. . . . . . . . . 4.3 3.6 4.3 3.6 Purchased in-process technology . . . . . . . . 28.1 1.9 55.5 3.8 Restructuring and asset impairment charges. . . 3.4 - 6.7 - Other income and expense, net . . . . . . . . . (0.6) (0.1) (0.8) (0.1) ------- ------ ------- ------ 51.1 17.5 83.7 19.5 ------- ------ ------- ------ Income (loss) before provision for income taxes (32.6)% 9.9% (64.7)% 8.4% ======= ====== ======= ======