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To: Glenn D. Rudolph who wrote (24658)11/5/1998 10:51:00 PM
From: OtherChap  Read Replies (1) | Respond to of 164684
 
Hey Glenn, can you dig up the actual 144 released today regarding Jeff Bezos's sale?

I just cut and paste the mention from the yahoo message boards. It looks legit but I'd like some confirmation to rub it in. :)



To: Glenn D. Rudolph who wrote (24658)11/6/1998 4:34:00 AM
From: Philip Logos  Read Replies (2) | Respond to of 164684
 
IceGroup study is outdated now. It's quite evident that the break even in profits is closer to 1.4 billion in annual sales. If you take a 22.6 percent gross profit margin and increase sales by 100 million per quarter, that puts sales at 253 million per quarter but increases the bottom line by only 22.6 million dollars; which when added to a 24 million dollar quarterly loss, still produces a loss of 1.4 million dollars, providing fulfillment and other general and admin expenses remain fixed. (which they never do) Here's why I think the break even can only occur with higher sales:

Fulfillment and G&A expenses increased by 15 million dollars from the June quarter to the September quarter, so if we conservatively increase that number by 21 million per quarter to offset 200 million dollars in additional quarterly sales, the Company will only break even when sales equal 350 million per quarter.

153 million dollar sales produced Current loss = (24 million)
add: gross profit
on 200 million of 45 million
less: additional
fulfillment and
g & a expenses of 21 million

Equals break even -0-