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Technology Stocks : S1: Doing Business in a Dot Com Depression, -V1 -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (789)	3/10/2000 12:27:00 PM
From: tuck	Read Replies (1) \| Respond to of 1013

Peter, Chuckie's pretty funny, but he only partly addressed the flat data center revenue issue. While the acquisition/business model issue is certainly a big factor, another major factor is the pricing structure of the data center services. It's a flat fee until a certain minimum volume is reached. Then a per customer surcharge kicks in. Per the most recent conference call, S1 had several customers that were approaching this threshold. Soooo . . . With the business models changed AND the acceleration in data center revenues just starting -- both manifested in the upcoming quarter or two -- you can see why the price is where it is. And why that article understates the S1 case a bit. Cheers, Tuck