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Fools -

Here is what the CEO has to say (summarized) concerning the latest earnings estimate. Yes earnings are bad, but.....

"We have $30 million in cash.
We have no debt of any kind.
We continue to generate cash from operations every month.
Our outsourcing business is very strong, (140% growth, over last year with $31,000,000 in revenue.
We continue to make improvements in our service delivery processes, I/T infrastructure and sales/marketing processes. "


What he does not say is that there have been few new contracts in the last 6 months.
After the stock offering, they had $67 million in cash, with no debt. $37 Million has been spent.
Yes, their outsourcing is going good. The startup costs associated with each new outsourcing contract are a lot, and not profitable, but once they are in place, the costs per client are negligible (sp?). At that point, the profit margin per client is very good.

Think long term....think long term....





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