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Bobwins

11/04/06 12:34 PM

#467 RE: rgg_1120 #466

rgg_1120 ypnt.ob is a sales company. They are selling an intangible(advertising) so the balance sheet isn't going to mean much. P&L is everything. Ypnt.ob needs to continue to grow sales in a steady, cost effective manner and hold the customers as long as possible.

In the short term, we need continued sales growth and controlled expense growth because of the new sales call center in Vegas. I expect those new expenses will offset any sales increases for Q3. The success of the call center will determine future sales increases and increased profits.

The new call center is also key to new initiatives to cross sell other products like website hosting and creation. These are more complicated services than just providing a listing in a directory so it will require more educated and experienced staff to provide these services. There is some risk here but certainly customers who are cross sold will likely be longer term customers.

I am optimistic over the long run but a little anxious to see what the Vegas call center did to expenses short term.

Bobwins