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thepennyking

02/18/04 8:45 PM

#50 RE: thepennyking #49

WE DEPEND LARGELY ON ONE-TIME SALES TO GROW REVENUES.


A high percentage of our revenue is attributable to one-time purchases by our customers rather than long term recurring ASP type contracts. As a result, our inability to continue to obtain new agreements and sales may result in lower than expected revenue, and therefore, harm our ability to sustain operations or profitability on a consistent basis, which could also cause our stock price to decline. Further, because we face competition from larger better-capitalized companies, we could face increased downward pricing pressure that could cause a decrease in our gross margins.