Lazlow
join:2006-08-07
Saint Louis, MO | reply to espaeth
Re: not viable? really
espaeth
If you look at their 10K you will see while HSI revenues increased by 11%, their HSI costs of revenues decreased by 12%. So you are correct their profit was not 11%, it was greater than 11%. |
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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
 ·voip.ms
·Vitelity VOIP
·Callcentric
·VoiceStick
·ViaTalk
 ·Comcast
 ·Embarq
| said by Lazlow  :If you look at their 10K you will see while HSI revenues increased by 11%, their HSI costs of revenues decreased by 12%. So you are correct their profit was not 11%, it was greater than 11%. Direct costs (maintenance, capex for hardware, vendor costs) went down, but again you're not factoring in the other indirect cost line items from the 10-K.
You can't do a 1:1 correlation of product line revenue to product line direct costs. Product line revenue accounts for all income associated with that product, but the direct costs don't reflect the total cost of actually providing the service.
It's like relating the cost of your auto repair bill to just the parts on the invoice, but not factoring in labor costs. |
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Lazlow
join:2006-08-07
Saint Louis, MO
| espaeth
Total revenues were up 5%. Video revenues were down but HSI revenues were up. Video costs went up 6%, but HSI costs went down 11%. So if video was down, HSI was up, and there was no major upgrades done to the HSI system, where was the majority of increase in the non listed items? Probably in the switch from analog to digital on the video side and the rapid expansion of their VOIP product. |
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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
·voip.ms
·Vitelity VOIP
·Callcentric
·VoiceStick
·ViaTalk
·Comcast
·Embarq
| said by Lazlow :So if video was down, HSI was up, and there was no major upgrades done to the HSI system, where was the majority of increase in the non listed items? Annual salary increases for employees? Higher cost of healthcare benefits? Higher energy costs? Higher fuel costs for the vehicle fleet? |
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Lazlow
join:2006-08-07
Saint Louis, MO | All of which are there no matter how much an individual downloads. |
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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
·voip.ms
·Vitelity VOIP
·Callcentric
·VoiceStick
·ViaTalk
·Comcast
·Embarq
| said by Lazlow :All of which are there no matter how much an individual downloads. True, but that's not what we're talking about? (relating 10-K cost values to revenue) |
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