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StarterKit

06/14/09 8:25 PM

#111722 RE: overachiever #111714

Don't see SPNG taking a hit of growth, not with SpongeBob coming out. They are pushing their car sponges hard on TV and sales are moving up. You put the up front costs in first, like I said, in case the product flops (I don't see this product flopping though). If sales increase to the point where you have to add in another production line, then you end up with more costs from buying more moulds, that's another bubble in the COGS that helps keep the tax rates down. True, you can amortiorize out the cost of hardware, but don't think that is possible with the up front license fees.