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Re: Rev Kilgore Mullet post# 135148

Saturday, 09/24/2011 12:36:55 PM

Saturday, September 24, 2011 12:36:55 PM

Post# of 312018
Rev

Your first statement is wrong. Short-term there may be a short-fall in revenues even if the product is up to standard. Contracts have to be entered into before there are sales. Testing comes before contracts are entered into.

I suspec costs will be somewhat higher than predicted in the past. But if there is only intermittent production for lack of sales or other reasons this will affect margins since expenses will to some extent be fixed.

I don't understand what you refer to margins and some dollar numbers at the same time. If revenues are only 100,000 dollars I will be disappointed but it will not in itself have any big impact on my confidence in management. What matters to my mind is the reason for the limited revenues if they turn out to be limited and if there is some fundamental problem, which I don't expect there will be. A few months delay in getting six processors into production may mean minor dilution which does not matter much in my book since I think the pps should already be above 10 dollars in a rational world, taking into account the astounding prospects when it comes to future profits.