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  • stevevajs stevevajs Mar 20, 2012 12:10 PM Flag



    Regarding your question: "What do you mean by achieving scale steve?"

    It was a word i picked up from Sherlyl Skolnick (Analyst for CRT Capital Group) questioning Marvin Richardson during 4th qtr 2011 conference call about KADR iniatiatives. See below:

    Sheryl Skolnick - CRT Capital Group. - Analyst: Let me get to some more substantive questions, although Mark was kind enough to ask almost all of them for me. As we look out towards 2011, my sense of what's happening at the Company is that you're building scale and learning as you go, so if I can ask the question this way -- is it correct to look at 2011 as a year in which maybe we should be a tad bit less concerned about achieving profitability and a bit more concerned about achieving scale? Because it seems to me you have a lot of lives in backlog that can be, if I can term it that way, that with the appropriate execution with the improvements that you've made with some additional marketing dollars being spent by WellPoint and your other payer partners, that we should begin to see by the end of fiscal 2011 substantially more scale at the Company. And then volume discounts and other things begin to correct the kinds of pressures we're seeing on the gross margin and profitability generally?

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