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Re: Arthur post# 10002

Sunday, 07/31/2011 4:15:50 PM

Sunday, July 31, 2011 4:15:50 PM

Post# of 184464
IF the 15%/month revenue growth in May continues, the company would reach break-even (and this is with payments on debt interest) in December 2012. (You calculated this as in 2013). This assumes the operating margin stays at, I think 38%. I would expect, however, that the marginal operating margin is greater than 38%, so that the operating margin would increase with higher revenues.

Now, that first sentence has a big "IF." 15%/month growth may not be possible for more than the blip that Globalpreneurs, Group9, and the other agents might generate. So, the company needs to do a better job (okay, they aren't even doing the job now) on marketing their own services as opposed to farming it out to pie-in-the-sky promoters who are blowing smoke up Riss's rear end (e.g., Globalpreneurs' promise of 50,000 subscribers by the end of the year). Their basic VOiP service in the U.S. is a great deal for anyone with a land line through a regular telephone company. Yes, there are other company's offering similar VOiP service for similar rates, but the fact remains that there are a lot of households still paying significantly higher rates than any of the VOiP companies offer. PVSP needs to go after these customers.

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