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  • Digital Think

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    Mayra Alonzo
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    The document contains three tables presenting data on the worldwide IT training market and typical sales compensation in the computer-based training industry. It also includes quarterly income projections for DigitalThink showing expected revenues, costs, expenses and operating income through the fourth quarter of 1999 with revenues expected to reach $1.56 million and operating income projected to be $248,000 by the fourth quarter.

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    Finance case analysis

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    The document contains three tables presenting data on the worldwide IT training market and typical sales compensation in the computer-based training industry. It also includes quarterly income projections for DigitalThink showing expected revenues, costs, expenses and operating income through the fourth quarter of 1999 with revenues expected to reach $1.56 million and operating income projected to be $248,000 by the fourth quarter.

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    © All Rights Reserved
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    8 views3 pages

    Digital Think

    Uploaded by

    Mayra Alonzo
    The document contains three tables presenting data on the worldwide IT training market and typical sales compensation in the computer-based training industry. It also includes quarterly income projections for DigitalThink showing expected revenues, costs, expenses and operating income through the fourth quarter of 1999 with revenues expected to reach $1.56 million and operating income projected to be $248,000 by the fourth quarter.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    DigitalThink

    Table A: Worldwide IT Training Market Revenues - Selected Data

    1996 2001 1996-2001 CAGR

    World Total $16.4 billion $27.9 billion 11.2%

    United States 7.1 billion 12.9 billion 12.7

    U.S. Web-based 74.0 million 3.4 billion 109.7

    Source: International Data Corporation 1997.


    Table B: Typical Sales Compensation Ranges for the Computer-based Training Industry

    Salesperson Regional Manager

    Typical Quota $800,000 - $1,200,000 Total of AE quotas under RM


    Sometimes carry personal quota
    Cash Compensation
    Base salary range $35,000 - $75,000 $55,000 - $90,000
    Commission rate Varies by company Varies by company
    Typical total cash compensation $60,000 - $125,000 $110,000 - $150,000
    Top earnings (rarely capped) $250,000 $250,000
    Exhibit 5: DigitalThink Quaterly Income Statement Projections (catalog sales only - '000's)

    Q4-FY98 Q1-FY99 Q2-FY99 Q3-FY99 Q4-FY99

    Net Revenue 370 640 875 1,135 1,560


    COGS 74 128 175 227 312
    Gross Profit 296 512 700 908 1,248

    Marketing 180 215 230 240 250


    Technology 135 145 160 175 190
    Production 265 275 285 290 295
    Operations 40 50 65 85 115
    Administration 65 75 80 90 100
    Sales Management 30 30 45 45 50
    Total Expenses excluding sales force 715 790 865 925 1,000

    Operating Income before sales


    force expenses (419) (278) (165) (17) 248

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