From the 10Q
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INSP MD&A Disclosure
Revenues earned from companies in which we have investments are considered related party revenue. During the quarter ended June 30, 2001, we made investments in four private companies for business and strategic purposes. In the normal course of business, we also entered into short-term agreements to provide various promotional services for these companies. We recognized related party revenue of $11.3 million for the quarter ended June 30, 2001, substantially all of which was derived from these short-term agreements. For the quarter-ended June 30, 2000, related party revenue was $3.2 million. For the six months ended June 30, 2000, related party revenue was $6.4 million. We anticipate that related party revenue will decline substantially in the quarter ended September 30, 2001 as we focus on business areas which have longer-term contracts with recurring monthly revenue streams.
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What is this saying? Does INSP provide a 'free trial run' for new partners and claim a nice big 'pretend profit' as to what they would like to charge for their services?
Are we going to see big turnover next quarter of former 'clients' that have been enjoying 'various promotional services'? If the promotions are going to end, then the fees that they were worth will no longer be stated as 'Related Party Revenue.'
Now I understand INSP will reduce Barter Income, is it something that is completely separate from Related Party Revenue? |
