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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: crc who wrote (24769)	11/11/1998 6:14:00 PM
From: Bonzo	Read Replies (1) \| Respond to of 31646

I posted this on the AOL Board a couple of days ago. Here is my scenario and rationale for the new MEP alliance. I'm a bit jazzed about it. MEP Number of Average Total Billable Average Members Participants DB hits DB Hits per Hit 380,000 x 10% = 38,000 x 10/client 380,000 x $75. = $28,500.00 Comments: If only 10% of the MEP members participate in this program (conservative), and on the average, each small manufacturer accesses TAVA's Database for compliance reports only 10 times (billable hits very conservative), and TAVA further reduces its ASP to $75.00/hit (reasonable and the MEP gets $25. for a $100./hit cost to the client), then we have a potential for additional revenue of $28.5M for 1999 - all very high margin. TAVA provides training to 400 MEP US sites, provides ongoing support, training and maintenance of the database, and TAVA should be able to maintain a 80-85% gross margin for this specific initiative and revenue generator. With 38,000 small manufacturers participating this averages only 95 clients per MEP center - certainly quite manageable. The average hit cost would be subject to volume pricing and price/hit breakpoints. Disclaimer: This is just my opinion and guesstimate - your own estimates may differ significantly.