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Technology Stocks : Net Perceptions, Inc. (NETP) -- Ignore unavailable to you. Want to Upgrade?

To: Whys1 who wrote (946)	5/28/1999 1:32:00 PM
From: James Sinclair	Respond to of 2908

I was looking over the earnings report that NETP released on Monday, and one item that concerned me was that it took about $1.7M in sales and marketing expenses to sell $1.6M worth of product. Certainly not a trend you'd like to see continue long term. Was this discussed at all during the conference call? I could understand it if these were one-time costs associated with building up there sales force. Mar 99 Mar 88 Revenues: Product $1,561 $617 Service and maintenance 334 53 Total revenues 1,895 670 Cost of revenues: Product 36 6 Service and maintenance 313 35 Total cost of revenues 349 41 Gross margin 1,546 629 Operating expenses: Sales and marketing 1,737 932 Research and development 1,536 368 General and administrative 574 226 Stock compensation expense 503 7 Total operating expenses 4,350 1,533 Loss from operations (2,804) (904) Other income (expense), net (72) 28 Net loss $(2,876) $(876) Net loss per share: Basic and diluted $(0.64) $(0.31)