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GM Impact to Overall Business

         The next step is to understand the GROSS MARGIN impact on your business.

                 Gross Margin Comparison                                                                                  Assumptions

$1.65 M                                                                                                     • 24% overall gross margin on total
                                                                                                              business (product resale and
$1.40 M                                                                                                       services) for on premise only
                                                                                                              business model
$1.15 M
                                                                                                            • 20% gross margin in year 1-2 to
                                                                                                              accommodate investments and/or
                                                                                                              inefficiencies

                                                                                                            • 35% gross margin achievement in
                                                                                                              years 3+ based on business
                                                                                                              transformations

$.90 M

         Year 1  Year 2         Year 3    Year 4

Gross Margin - On premise Only  Gross Margin - Balanced Practice

The data contained in this chart is illustrative. Assumptions are included at the back of this document. .
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