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Technology Stocks : Spyglass -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (1120)	10/20/1999 5:12:00 PM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 1412

I don't know that the problem you're pointing to is so much an earnings statement issue as a cash-flow statement issue: the company is booking revenues and costs as the work is completed, but before payments are made. So revenues and earnings could look better than cash flow. This is the issue I had in mind when I noted the large increase in accounts receivables in an earlier message this morning. Basically, SPYG runs the risk of subsidizing the work it's doing for clients if it takes too long to get paid for completed services -- which is a sub-optimal use of assets, unless they have a real plan for making money as creditors to their customers. In the rather creative world of Internet "metrics," this is a problem: free cash flow trumps earnings as a marker of business success. At least that's the argument that lies behind calling AMZN a "value" stock. SPYG would probably generate much more interest among investors and speculators if it could point to significant free cash flow. Alas, as things stand, it's saddled with mere profits.

To: Art Bechhoefer who wrote (1120)	10/20/1999 5:22:00 PM
From: Bruce Cullen	Read Replies (1) \| Respond to of 1412

Art, Yes I see the accrual point, I suspect the deals will grow in size and amount, there is to much going on for it to slow. Also since SPYG joined the Advanced Television Enhancement Forum for Development of Interactive TV Content I expect more deals to flow from this alone. I would even go as far as saying that when folks see what Spyglass is doing this forum may create more revenue then what is on the books already. Bruce Cullen Sherwood Coasts Group geocities.com

To: Art Bechhoefer who wrote (1120)	10/20/1999 8:41:00 PM
From: Shtirlitz	Read Replies (1) \| Respond to of 1412

Spyglass does receive royalties in addition to the licensing fees. The thing is that most of the products for which they will be receiving royalties are still in the development. Which means that this revenues will start to emerge toghether with the growth of the internet-enabled appliances market. And judging by the amount and size of Spyglass customers, these revenues should be pretty good. This market is only emerging. Spyglass is a bargain at any price below 10. I couldn't help it and bought some more.