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Don't confuse "gross" with "net" margins      4-Nov-09 05:36 pm    
Slide 15 from yesterday's presentation was titled "sDNA Screening Test Market" and shows a "US Total Addressable Market" of $5.4B and a 30% penetration equaling $1.2B. Maybe I missed something from the presentation because 30% of $5.4B equals $1.62B not $1.2B. What did I miss?

Secondly, take a survey of many health care related companies and you will notice a divergence (sometimes quite large) between a company's gross margin percentage and its net percentage. You will also notice how many companies have strong gross margins yet once all costs are included (subtracted), have a negative income. It's all about what flows to the bottom line (no pun intended). So, one can play all the mental math games one desires in terms of future profitability based on numbers of people tested, gross v. net margins, but they are just that.


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gisstu


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Don't confuse "gross" with "net" margins
gisstu Not rated 4-Nov-09 05:36 pm  
 
gisstu, This is a good point. But if you ana...
pro4exas Rate it 4-Nov-09 05:46 pm  
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Exact Sciences Corporation (EXAS)

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