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Technology Stocks : Net Perceptions, Inc. (NETP)
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To: rupert1 who wrote (2737)8/18/2000 6:43:48 AM
From: rupert1  Read Replies (2) of 2908
 
Analyst Meeting - ASP/dot.coms

- the CFO was very enthusiastic about the ASP business; described it as a major layer on top of the existing business: said it was 6% of revenues (although we were told at the CC it was 2% in 2Q) and that he expected it to rise to 35%. I find these forecast so bullish that there is a strong chance I misheard and stand to be corrected. However, my own view is that ASP could become a huge volume business.

- ASP is being introduced in the USA first and not internationally although that will come:

- the ASP model introduces a strong element of visibility and preidictability in revenues which the CFO likes a lot:

- the ASP strategy is to entice people with an initial low price, and then to bleed them by monthly rentals (my words) and to give them an appetite for the bigger fix of NETP enterprise software: it is a trojan horse approach:

- ASP also allows NETP to stay with the dot.com market but not to be be overly reliant on it: new dot.coms will be able to afford the ASP: NETP will also target the larger, financially stronger dot-coms with its enterprise software.

- the ASP sales have already produced deferred income which will show up on the top line of future quarters:

- the CEO said that the market had mistakenly confused NETP's business with dot.coms: it was never reliant on dot.coms:
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