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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (8644)	6/24/1999 5:01:00 PM
From: Bob Z	Read Replies (3) \| Respond to of 57584

DCLK - Relies heavily on the revenue generated by their "new" deal with Compaq. Here are a few glimpses from their 1st quarter of 1999 SEC report: Effective January 1, 1999, DoubleClick changed its relationship with Compaq by entering into an Advertising Services Agreement (the "AltaVista Advertising Services Agreement") that superceded the Procurement and Trafficking Agreement. Pursuant to the AltaVista Advertising Services Agreement, Compaq has agreed to use DoubleClick's DART technology for ad delivery and to outsource to DoubleClick certain ad sales functions for domestic, international, and local ad sales. In consideration for such services performed by DoubleClick, Compaq pays to DoubleClick (i) a DART Services fee for all advertising delivered by DoubleClick on the AltaVista Web site, (ii) a sales commission based on the net revenues generated from all advertisements sold by DoubleClick on behalf of Compaq and (iii) a billing and collections fee for all billing and collections services performed by DoubleClick on behalf of Compaq. Under the AltaVista Advertising Services Agreement, the manner in which DoubleClick reports its financial results related to the services it provides to the AltaVista Web site has changed. Through December 31, 1998, DoubleClick recognized as revenues the gross revenues related to ads delivered by DoubleClick to the AltaVista Web site. Beginning January 1, 1999, pursuant to the AltaVista Advertising Services Agreement, DoubleClick recognizes DART service fees, sales commissions and billing and collection fees as revenues derived from the sale and delivery of ads on the AltaVista Web site and associated services. As a result of this change in relationship with AltaVista, overall gross margin percentage has increased (no significant change in gross profit dollars) as DoubleClick is no longer required to pay service fees to AltaVista for ads sold and delivered on the AltaVista Web site and revenues include the fees earned for services rendered. The AltaVista Advertising Services Agreement will expire on December 31, 2001, subject to prior termination in certain limited circumstances or further extension in accordance with the terms of the AltaVista Advertising Services Agreement. OUR DEPENDENCE ON ALTAVISTA Approximately 21.1% and 50.9% of revenues and 43.4% and 50.9% of systems revenues for the three months ended March 31, 1999 and 1998, respectively, resulted from advertisements delivered on or through the AltaVista Web site. On January 20, 1999, DoubleClick agreed with Compaq to enter into an Advertising Services Agreement to replace the existing Procurement and Trafficking Agreement. The Advertising Services Agreement is effective as of January 1, 1999 and will expire on December 31, 2001, subject to prior termination in certain limited circumstances or further extension in accordance with the terms of the Advertising Services Agreement. The loss of AltaVista or any significant reduction in traffic on or through the AltaVista Web site would materially and adversely affect our business, results of operations and financial condition. I have not discovered what the "certain out" clauses are but Alta Vista is a serious revenue crutch for DCLK. Bob Z

To: Rande Is who wrote (8644)	6/24/1999 7:06:00 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 57584

Bad news? So long as bond yields keep rising, stocks in general have a cloud over them. More so for some of the high fliers. A what if might include the FED raising 1/2 point as a warning shot. We talked about this months ago, before most had ever given it a thought. (Most thought I was nuts buying oil futures around the $10 level, and look how that turned out) These are so big most people can't see the forest for the trees. The second thing to worry about is when China will devalue. That will thump the heck out of most of the Asian recovery, and hit Japan like an asteroid. I had some very short term puts on EBAY last week. From 3.5 to 17 in a few days. Like I said, been playing with a few high risk/reward option plays.