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

To: Oeconomicus who wrote (909)	12/2/2000 12:33:51 PM
From: noiserider	Read Replies (1) \| Respond to of 1013

I believe this is a move much like CKFR's acquisition of Transpoint - it eliminates the market confusion. Banks and Portal and Brokerages now have an easy (and only one) choice. Yodlee had the larger market share, but V1 had some good installations like Yahoo and Wells. Why should both V1 and Yodlee spend money to make connections (whether OFX or scraping) with each biller/statement provider? Combine forces and dominate the market. I just wish I had a way to make a pure play on Yodlee before their IPO. Noise

To: Oeconomicus who wrote (909)	12/3/2000 1:51:14 PM
From: Kevin A. Lynch	Respond to of 1013

Thanks for the nod Bob, here is an abstract of my note from Nov. 19, 2000 Dear Fellow Longs: At Issue V1 I wonder if S1 should move to sell this operation and perhaps consider retaining the potential patent rights should a patent be granted. I do see a market for this product however, currently profitability does not look to be soon. My thinking on this is that the revenues generated are minimum and perhaps might only be slightly improved if banks start licensing the product. I do hold out hope that Yahoo might move things in a positive direction. I don't know that a patent would even be enforceable given the climate on the internet, but I think that might be the gambit to play. Data Centers... We are still only at about 5% of capacity for the Ga site. The goals have been nearly made over the last three quarters, but we will have some impact given the Citi client abatement which is said to be nearly complete. In my earlier studies of the DC I decided a Data Center could be worth 5 billion if at capacity. Due to some competition it looks as if 3 billion a DC might be more appropriate; however, Sam discussed once before that the marginal cost are much greater for the first 2 million users than the last 2 million users. I used 15 million as a capacity per S1. Hence we are still in the Initial cost area as opposed to being in the highly profitable zone. that being said I wonder if it would benefit S1 to further cut the freight to get FI's into the DC. Using complied data surely the DC is worth 150 million even with the current number of users. I think one of the more creative deals was to allow Zurich 10% ownership of the Euro DC, this could help get that DC moving forward on a fast track. As for the Asia DC ... Too early to tell how it will be received. I see the DC's as being one of the true gems of the co. Port to IBM ... I know thinkdif saw this as being something that was going in the wrong direction. I haven't heard enough on this matter to have a credible opinion. It does seem that we are moving aggressively forward in this area. I do think IBM still has a key to the back offices at many banks and will likely be a player in some capacity. Would be interested in hearing others take on this matter. Revenues As long as the sequential growth remains I think this down draft will pass. We are about 5-10 million lower than I would have expected to see after having seen last years analyst meeting. I think many of the stock traders are Americocentric (my word) in their thinking and don't understand or respect the global opportunities for revenue growth. If we should falter over prior quarters and have some sequential decay in revenues I think the market will look upon that harshly. Expenses This is one very positive item I noted after reading the latest quarterly. It looks as if mgt. has a grip on expenses and should only improve going forward. I advocate the R&D growth. This area could be a big plus going forward should the financial discipline continue. Analyst I dismiss nearly all the analyst as pundits and find most of their comments as being "late to the dance". However, I think if we could get an upgrade from Richard Bove it would be a positive. He was the first analyst to downgrade during the late malaise, and that being the case he looks to be the flag bearer for making the best calls. Partnerships I thought Chip made some good comments about Andersen during the call. I would like to know what the value of the HP partnership is.... It has been unclear of what the benefit to S1 has been. I also wonder if they still have any shares of stock. Also would like to get an update as to the progress on the INTU integration. It does appear we still have a cordial relationship with Citi to that end I note Finacialmatrix.com.... I think that's the name. Patent Litigation There have been no updates on this matter and it would be nice to know if there is any enforceability with respect to Cori. If we score anything like that on the 3 tier architecture it would be major. Although I have not been able to add shares lately, I have remained a faithful long. I would like to hear some others opinions to these affairs. Go S1 Corp.... Respectfully yours, Kevin A. Lynch (kmankman) and only kmankman

To: Oeconomicus who wrote (909)	12/3/2000 1:59:20 PM
From: Kevin A. Lynch	Read Replies (1) \| Respond to of 1013

Bob, I would like to see how you derived that S1 would retain 2/3 of the upside. What I have seen is that S1 will own 38% on the new entity. I am sure we both agree that V1/Yodlee are 1 and 2 in aggregation and it is likely that margins in aggregation might easily increase due to a halt to this fierce competition. Also, it would be nice to know what the terms of the deal are including if any cash is coming along in the deal. My guess is S1 was burning something like 2-3.8 million per quarter on V1; however, my numbers are straight conjecture. Another thing that would be nice to know, is if S1 has secured a contract from the combination to manage the DC necessities for the new entity. the latter could be a boon for S1. Best Regards, Kman Hopefully, we can get an adult conversation going on here.