What does GPM stand for?

Chris Schott, an analyst at Banc of America Securities, wrote in a research report that better-than-expected gross product margins, at 77 percent, helped Merck beat analysts' expectations.

The increased gross product margins experienced during the quarter were more than offset by merger-related expenses incurred during the quarter.

Our solutions uniquely provide companies the benefit of maintaining complete control of the channel, ownership of the customer relationship and retention of the gross product margin normally lost to distributors, resellers and other trading partners.

Gross product margins in the fiscal fourth quarter of 2007 were 45%, compared to negative 32% in the year ago period.

Part of this gross product margin improvement was due to the introduction of new products that provided required functionality at a lower cost.

While gross product margins in our retail business increased during the second quarter from the prior year period, this improvement was offset by lower comparable store sales and increased store expenses as a result of a larger store base.

31, 2001 ---------------------------------------------------------------------- Revenue - Product $ 4,778 $ 5,359 $ 5,348 - License and technology 0 318 11 ---------------------------------------------------------------------- - Total 4,778 5,677 5,359 Gross product margin 26%(a) 34% 38%(a) Operating loss $ 5,632 $ 7,065 $ 6,385 Cash used in operations 1,024 10,092 2,776 ---------------------------------------------------------------------- January 31, October 31, 2002 2001 ---------------------------------------------------------------------- Cash balance $ 4,810(b) $ 5,533 Working capital 10,669 13,663 Shareholders' equity 33,924 15,666 Total assets 43,240 52,035 (a) Before adjusting for non-cash writedown of inventory.

31 (In thousands of dollars) 2001 2000 2001 2000 Revenue - Product $ 24,438 $ 14,893 $ 5,348 $ 6,695 - License and technology 364 1,116 11 75 ------------------------------------------ - Total 24,802 16,009 5,359 $ 6,770 Gross product margin 32%(a) 33% 38%(a) 28% Operating loss $ 39,015 $ 19,447 $ 6,385 $ 8,918 Cash used in operations 33,903 24,605 2,776 15,083 October 31, October 31, 2001 2000 Cash balance $ 5,533 $ 12,571 Working capital 13,663 19,950 Shareholders' equity 15,666 74,706 Total assets 52,035 83,379 (a) Before adjusting for a non-cash writedown of inventory to estimated market value.