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Microcap & Penny Stocks : Microphonics Inc. (mrps) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew H who wrote (836)	2/28/1999 11:56:00 PM
From: carepedeum2000	Read Replies (1) \| Respond to of 8189

re: Profit margin could the 34% profit margin cited be the "net" profit margin? With only 4 employees, and a manufacturing cost of $435 on an item selling for $2000 in quantity, 34% is way too low for the gross profit margin, if they are netting 34%, that is phenomonal, but I'm not sure if the 34% number is accurate or not, miles himself gave me the cost and the selling price, so I feel comfortable with those numbers, is it possible this company could "net" 34%?

To: Andrew H who wrote (836)	3/1/1999 12:41:00 AM
From: Roofman	Read Replies (1) \| Respond to of 8189

Andrew, I posted that on RB. I am NOT attempting to spam MRPS. To the contrary, I believe this company has tremendous potential. You took that quote out of context, however. What I said is that I had observed Mr. Gayle, in all press releases and in his interview, has been very careful to state that Model #xxx "RETAILS" for $xxxx. On the basis of those statements, people have been projecting revenues based on xMillion units at retail price. I merely pointed out that, since MRPS is outsourcing much of the manufacture and distribution of the devices there are other concerns taking their share of the pie. If the device is being manufactured by one concern, wholesaled by another and retailed by still another, MRPS cannot possibly realize revenues equal to the full retail price of the device. My guess (and I stressed in my post that it was nothing more than a guess) is that MRPS's realized revenues are probably somewhere closer to 25% of the retail value of the units sold. Assuming the market for this product continues to expand as we all hope it will, this still adds up to an awful lot of money. To assume, however, that MRPS's revenues will be equal to 100% of the retail price of product delivered is to grossly overstate projected revenues, IMHO. I hope this clears things up. Roofman