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

To: Benny Baga who wrote (13270)	1/25/2000 7:39:00 PM
From: Brooks Jackson	Respond to of 20297

I hope you are right. And Wells is important indeed.

To: Benny Baga who wrote (13270)	1/25/2000 8:06:00 PM
From: Bruce Prescott	Read Replies (1) \| Respond to of 20297

I think subscriber count will be less important than the number of transactions under the new terms offered to Wells Fargo. If I'm reading the release correctly and remembering information from previous releases correctly, it sounds like Checkfree used to get a flat fee per subscriber -- whether they used the service or not. Those subscribers who weren't really using the service failed to upgrade to Y2K compliant software. The subscribers replacing the old ones are making more transactions and that should drive future revenue growth -- since Checkfree is now receiving fees per transactions. What worries me is that I suspect the new subscribers that are replacing the subscribers who did not upgrade are not coming from Wells, they are probably coming from Yahoo (myself for one). I also suspect that it is the Yahoo users who are increasing the number of transactions. If Checkfree is still receiving a flat fee per subscriber from Yahoo, then the increase in transactions will not increase revenues. Long term I suspect that Yahoo will also move to a fee per transaction and that might help in the future. I sure hope somebody on the conference call asks for information about the number of subscribers from Yahoo. I also wish someone would ask how many transactions a Wells subscriber has to make for Checkfree to break even with the loss in basic subscriber fees. Bruce