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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: FREAKAZOID who wrote (30168)	6/5/1999 10:14:00 AM
From: Suzanne Newsome	Read Replies (2) \| Respond to of 44908

The Signature Group contract is starting in June as confirmed by Pat T. We know the contract is for $30 million, the profit margin is 25%, and activity will ramp up. I offer the following revenue/profit projection. Let's assume that June is a start-up period, and business begins in earnest in July. We will look at the July,'99-June,'00 time period. A $30,000,000 contract implies revenue of $2,500,000 per month at full ramp up. Let's divide the July-to-June year into 4 quarters and assign a progressive activity level to each. a) 3rd Qtr, 99: averages 20% b) 4th Qtr.99: averages 50% c) 1st Qtr. 00: averages 75% d) 2nd Qtr. 00: averages 100% These assumptions lead to the following revenue levels. a) 20%($2,500,000) x 3 = $1,500,000 b) 50%($2,500,000) x 3 = $3,750,000 c) 75%($2,500,000) x 3 = $5,625,000 d) 100%($2,500,000) x 3 = $7,500,000 Total revenue is $18,375,000. Applying a 25% profit rate to this amount equals $4,593,750. If TSIG is able to execute this teleservices contract properly (and may I say aside, there is no room for nonperformance here; it is time to execute), this could lead to Signature expanding its relationship with TSIG, and TSIG signing teleservices contracts with other businesses. Look at the difference between the company adding an Online Services division and the company adding additional teleservices business. The Online Services division required an expensive VP, high-priced programmers, fancy offices in the most expensive place on earth, and a lengthy ramp up time. To add teleservices business, TSIG hires more modestly-paid telephone operators. Adding teleservices business allows the company to use capacity it already has, to spread fixed costs over more contracts. I realize that Online Services is an attractive business, but teleservices allows the company to increase revenues incrementally without risking the downfall of the company due to overextending itself. TSIG has a gentleman named Hernan Ramirez (?) who heads up bilingual teleservices. This is a niche area that TSIG may have a competitive advantage over other teleservices businesses. The Spanish-speaking population in this country is huge and rapidly expanding. Once TSIG successfully executes the Signature contract, additional teleservices business can be added for a modest marginal cost. Regards, Suzanne