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Finished my DD this weekend, and enthusiastically purchased shares of DSS today. While NAS and the SNAPServer product are clearly what makes this an exciting company, I'm not sure that the DLT side should be discounted so readily. It looks like sales of DLT, DLT media, and royalties from DLT made up about 80% of revenues last quarter. Gross margin overall was 45%. I don't know what was the margin on DLT and DLT media alone, but for the average of all product lines (DLT+DLT media+DLT royalties+SNAP)to average 45%, I would think that the margins on the DLT products can't be that bad. Does anyone know for certain? Value Line states that "DLT storage products have become the de facto standard for mid-range backup of data." So, while this "standard" may have its days numbered, for the moment it looks like it is providing the cash that is driving this business. I would suspect that DLT customers might be a valuable customer base for SNAP as well.

Those are just some thoughts on the subject. At any rate, I'm glad that the market is punishing DSS for its DLT unit, since it has provided me with such an outstanding buying opportunity.

Eric
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