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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (77624)	3/8/2001 11:27:30 PM
From: oldirtybastard	Read Replies (2) \| Respond to of 436258

reading LoudCloud's prospectus they come off as a glorified network integrator, nothing new or unique that I can see. Services business where the majority of the R&D budget went to increasing headcount and compensation and "proto-type designs" which means propellerheads tweaking servers around in their geek lab. There are probably 50 companies of their size or bigger in NYC alone doing the same exact thing except Marc Andreesen doesn't work there. Seems like a good time to be launching a company to help businesses get on the Internet, I think they will call it e-commerce or something, I hear it will be huge, in the $Trillions$ -vbg- As of January 31, 2001, we have signed customer service agreements totaling approximately $120 million in minimum committed value. We intend to recognize revenue related to these agreements ratably over the period the managed services are provided to the respective customers. The weighted average term of these agreements is 1.8 years. The amount of revenue we realize under these agreements may ultimately be less than $120 million. For instance, revenue may not be recorded as a result of down time or other credits as described below. Additionally these agreements are subject to our standard termination provisions, including breach or insolvency by either party to the agreement. Finally, customers' ability to pay these amounts could become limited in the future based on their operating results. And of course, the requisite roadmap for their business is right there too: As a result of anticipated increases in our operating expenses, we expect to continue to incur net losses both on a quarterly and annual basis for the foreseeable future. Our operating expenses are based in part on our expectations of future revenue and are relatively fixed in the short term. As such, a delay in the recognition of revenue from one or more contracts could cause variations in our operating results from quarter to quarter and could result in greater net losses in a given quarter than expected. edit: But at $6, every momo hound in America and Canada can get some, paying only 10 x revenues for a services company (that's 10x the revenues I get after giving them 100% sequential growth each Q for the next 3 from their $4 Million revenues in the most recent quarter). Sounds like a buy to me, it can only go down $6