2000
|
2001
|
Revenue ($)
|
11,744,628
|
33,826,076
|
39,624,551
|
43,587,006
|
47,945,706
|
Operating profit ($)
|
4,923,821
|
14,549,719
|
16,963,578
|
18,723,261
|
20,660,335
|
Operating margin
|
42%
|
43%
|
43%
|
43%
|
43%
|
Net income ($)
|
4,922,779
|
14,547,754
|
16,963,451
|
18,723,180
|
20,660,302
|
Net margin
|
42%
|
43%
|
43%
|
43%
|
43%
|
Assumptions
The financial projections are based upon current industry estimates of Internet and proprietary OSP subscribers, primary and secondary market research data, and estimates of the Product's market penetration and sales growth. More detailed information on the assumptions can be found in the attached statements, which have been prepared for years 1997 through 2001. These statements include projected income statements, balance sheets, and cash flows. See Table A for a detailed breakdown of assumptions.
Revenues include those resulting from registration of new accounts and sales of additional calling minutes. Cost of goods sold, while calculated on a per-minute rate, includes all services associated with buying, selling, and billing the customer for long distance time, as well as all fees and charge-backs associated with credit card billing. Marketing and sales expenses include costs associated with advertising, PR, and promotions, as well as those from revenue sharing with strategic partners. The company will not carry any inventory, and will operate with minimal overhead, due to the nature of the business.
See Tables B, C, and D for pro forma financial projections.
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