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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Gregg Sterner who wrote (14717)	11/22/1998 8:01:00 PM
From: Tim Luke	Respond to of 119973

thank you. tim

To: Gregg Sterner who wrote (14717)	11/22/1998 8:07:00 PM
From: Labrador	Read Replies (1) \| Respond to of 119973

MZON -- Internet Catalog This is an excerpt from the most recent 10-Q from MZON -- this just goes to show the power of the internet -- how sales can grow exponentially (dont we all know that ?) -- MZON is trading just under $6 at this time. Trends The Company has previously announced a planned evolution of its business toward increased on-line sales over the Internet, increased sales to business and education accounts through "outbound" sales efforts, and decreased reliance upon catalogs to generate "inbound" sales activity. This evolution continued in the third quarter of 1998, during which Internet and outbound sales combined grew to more than 56.2% of the Company's domestic sales. The Company anticipates that increasing Internet and outbound sales will cause the percentage of its sales represented by PC/Wintel products to gradually increase above the 49.0% levels recorded in the second and third quarters of 1998. During the quarter ended September 30, 1998, sales through the Company's Internet superstore, zones.com, grew to $13.6 million, or 12.8% of domestic sales, an increase of 334% over the third quarter of 1997 and 73% over the second quarter of 1998. This increase was facilitated by a variety of website improvements during the quarter, including hardware upgrades to increase system capacity, improvements to the website's user-friendliness, and the addition of expanded software-delivery capabilities. The Company plans to further customize its website to provide more efficient access and improved product selection for its Business and Education customers. The Company also promotes Internet sales by offering telephone sales assistance to its on-line customers. About 70% of sales dollars through the Company's Internet store are phone-assisted, which affords additional sales opportunities and results in increased order sizes. Outbound sales to business and education accounts grew to $45.9 million during the third quarter, an increase of 20% and 15% over the third quarter of 1997 and second quarter of 1998, respectively. This growth was achieved through a combination of process based productivity improvements and the Company's successful efforts to expand its outbound account executive headcount. The Company had 116 account executives at September 30, 1998, representing a 27.5% increase during the third quarter, and intends to continue its aggressive efforts to expand outbound sales headcount. Inbound sales resulting from the circulation of the Company's catalogs, by contrast, declined to $46.1 million during the third quarter, representing 17.5% and 1.3% decreases from inbound sales in the third quarter of 1997 and second quarter of 1998, respectively. The Company believes that the rapid growth of its Internet sales has been a significant factor in the flattening of its inbound catalog sales, as increasing numbers of catalog recipients choose to place their orders electronically rather than over the phone. Approximately 60% of customers placing orders through the Internet store have migrated from the Company's inbound catalog 12 sales division. The Company encourages this transition by featuring its Internet superstore prominently throughout its catalogs and by making its inbound telephone sales personnel available to assist on-line customers. The Company intends to continue to adapt and adjust the size, content and circulation of its outbound sales catalogs in an effort to optimize the combined sales of its inbound and internet divisions. During the fourth quarter of 1998, the Company plans to circulate 5.3 million PC Zone catalogs and 5.6 million Mac Zone catalogs, reflecting the lessened emphasis on catalog circulation in comparison to the fourth quarter of 1997.