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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (14256)	2/9/1999 10:55:00 AM
From: evergreen	Read Replies (2) \| Respond to of 64865

I just got a call into CNBC for stock picking about SUNW, and got an excellent long term outlook. Got in a word about JINI. Lets keep up the word on our SUN.

To: Charles Tutt who wrote (14256)	2/9/1999 12:24:00 PM
From: JDN	Respond to of 64865

Dear Charles: Cost of Sales consists of mostly variable and semivariable costs however there is a component of relatively fixed such as plant and equipment depreciation. If you wish to be conservative merely use the same gross margin on the 20% increase (likely it would be better) and then reduce SG&A expense however you wish to divide up the "proportionate part". Say 1% of revenue for next 3 years?? That should give you the adjusted pretax income. Presuming tax rates are similar you can calculate the after tax income from that point. JDN