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To: Jan Crawley who wrote (62916)	6/16/1999 5:51:00 PM
From: Tradegod	Read Replies (1) \| Respond to of 164684

Update on DRIV: This came from someone that follows the company. " I talked to the CFO Bob Strawman yesterday. We feel that the market is overreacting to this news for the following reasons: 1) Corel has only accounted for roughly 1.5% of DRIV's revenues over the past couple of months. It was as high as 15% in the first half of 1998 but has since declined. They are not even a top 10 client for DRIV anymore. 2) Corel only canceled part of the contract: the web hosting portion. They still will deliver software through DRIV. Therefore the estimated revenue impact is 1.0% or less of DRIV's revenues. 3) Corel switched their hosting to Techwave for a lower price AND less service. Corel was the only client of DRIV not to upgrade to their to new V2 system, indicating their interest in keeping the service and price levels the same. Therefore we doubt that this will lead to a major exodus of other clients. DRIV's client retention rate remains 99% plus. 4) The loss of Corel actually might improve gross margins slightly. Since they were originally a significant portion of revenues, DRIV made more concessions to them in terms of price and hence received lower margins on hosting . Therefore their leaving could improve DRIV margins slightly. Therefore, although it is never good to see a client leave, we feel that the Corel loss is minimal in the scheme of things and expect the company to meet and probably exceed our 2Q revenue target of $14.4 mm. "