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To: Alec Epting who wrote (374)	3/6/1999 2:36:00 PM
From: Dr Smith	Respond to of 495

Alec - that is a good observation. However, I don't think you can assume they have little revenue today. Last year, ending in 7-31-98, the company had $2.1 million in revenue (this came off the delayed report). This year I expect to see significant improvements, and at least enought to justify the 120 employees even while the company is operating at a loss. How many employees were there a year ago? One should take that ratio and multiply it by $2.1 to develop an expectation for this year.