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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: tktom who wrote (6440)	6/17/1999 1:12:00 AM
From: Erik T	Read Replies (1) \| Respond to of 20297

tktom, From CKFR's 10-Q >>>Additionally, the Company's efforts to rapidly enroll significant national merchants in electronic bill presentment programs, which will be integrated with financial institutions' electronic bill payment and banking offerings, will allow consumers complete electronic "round trip" payment capabilities. The growth in bill presentment is expected to drive growth in bill payment revenue through a more complete electronic offering, more so than providing a new stand alone revenue stream.<<< From their SEC filing it does not sound like CKFR expects to derive much revenue from bill presentment. Today, the Company has multi-year contracts with more than 50 of the nation's top billers to provide online billing and payment through the CheckFree distribution network. I do not think CKFR will derive revenue from all of these relationships; perhaps some. My understanding is each individual biller, AT&T for example, will be responsible for generating an electronic version of their bill, which can be displayed through CKFR's system. I do not think CKFR gets any money for this, unless CKFR actually generates the electronic bill. AT&T creates their own ebills in-house. Other billers will subcontract this out to a third-party firm, and some may use CKFR as this third-party, in which case CKFR would get revenue. If someone is certain I am wrong, please correct me. FY ending earnings June 2000 is $.35 This will certainly be revised downward after the conference call. I have reread the several posts on this matter, and I believe my initial statement about a "big loss for FY 2000" is wrong. But with the increased spending on promoting the product the profit will likely be small. Ironically, the smaller the better, as this means many people are utilizing the free trial, and hopefully would remain as paying customers. If CKFR can sign up a lot of people, and spends a lot of money in FY2000 attracting those customers, FY2000 profits will be small, but if they can eliminate the free trial expense and retain customers in FY2001, then CKFR makes a boatload of cash in 2001. I welcome clarification or further discussion, Erik (IMO)