InfoSpace (INSP): Where GNET went! Message Board

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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 93.69

-1.8%

Dec 29 3:59 PM EST

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To: KLP who wrote (25141)	2/16/2001 1:29:12 PM
From: lizking	Read Replies (1) of 28311

Well, I don't like answering questions with questions but really how important is it to have a ton of revenue. To make a point i have to refer back to my prior company owned by Berkshire Hathaway. I left them a year and a half ago partly because I knew that Lowe's Home Improvement was getting itchy to dump us. Well that was almost 1/4 of the revenue we had at the time. Sure enough they dumped us. However, I was offered a higher position with the company just last week and I asked the question "Should I be concerned with the current state of the business due to losing Lowe's as a customer?" the answer that was given to me was quite shocking. The answer: Even though we lose strength on the amount of revenues we gained strength in profitability. We were more profitable this past year than the previous year. We had a 5% increase in earnings." So what is the moral of the story here. Well simply put... Revenue is important however if the revenue doesn't produce black #'s on the bottomline what good is it. I could see people getting all frantic about the loss of revenue in a company that is cash poor. However because Infospace is leveraged so well on the balance sheet, I don't see the downside of lost revenues for a more profitable business model. Now as an opinion I think that Infospace was being really conservative on its Wireless Revenue and Merchant Services revenue based on the fact that they would have some 5,000,000 subscribers I think Tammy said. They had I believe 1,500,000 subscribers using the service this past year. They indicated that revenue from wireless would more than double (very open-ended) well to go from 1.5 to 5.0 is three times the revenue if you equate 1 subsciber to increased revenue. This # of subscribers doesn't take into concern the increase in female participants in the wireless services. Up until this year the wireless services were primarily made up of males. Take a look at the article I posted today on the Telephia Inc. Steering Committee meeting on the projected increase in female wireless subscribers. And even though I don't like to qoute Naveen on anything he says because he would tell me I didn't understand what he said...... I will anyway....... I believe Naveen said that he was not getting rid of the consumer services entirely just the non-growth portions of the company like the Hasbro gaming site. Instead of providing the service Infospace will just license the technology........ License agreements are beautiful things..... Contractual agreements usually spanning 1 year to 3 years that is free money for the most part.... Hell the technology is already created..... One last note..... Infospace always has an Earnings Surprise..... Always.... So they are predicting a loss of 5 cents a share... Well I will go out on a limb here and say that they will hit a profit of 3 cents a share by year-end.

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