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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Baldwin who wrote (12403)	12/8/1998 11:16:00 AM
From: george eberting	Respond to of 19331

Somewhat OT. An idea of what the competition is doing: cnnfn.com

To: Baldwin who wrote (12403)	12/8/1998 11:18:00 AM
From: Grantcw	Read Replies (1) \| Respond to of 19331

Hello all, The magnitude of the .28 to .08 cost per minute decrease stemming from this deal just hit me. I'm not familiar with the telecommunications industry specific accounting for cost of goods sold. Does anyone know the costs that go into the cost of goods sold for DCI? I'll assume that all of the costs in costs of good sold number on the income statement were reflected by the .28/minute reduced to .08/minute cost mentioned above. I doubt this is completely correct, probably a little aggresive, but I have nothing else to work with. Over the last six months we had ~17 million revenue ~15 million COGS ---- ~2 million contribution margin before other expenses like SG&A, etc... If COGS was reduced by the same percentage as the cost per minute was reduced (.28-.08)/.28 = ~71% ~17 million revenue ~4.35 million COGS (15-(15*.71)) ----- 12.65 million contribution margin before other expenses. Contribution margin before deal = 2 million Contribution margin after deal = 12.65 million ------------- Difference 10.65 million Right now that's somewhere between .50 to .33 cents per share for the past six month results. The cost savings would increase by a large magnitude as the revenues start exploding. Ya gotta like earnings. Any comments? Especially on the costs included in COGS? Should the same percentage apply to COGS as to the per minute cost savings? See ya, Grant