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To: Dan Hamilton who wrote (331)	10/24/2001 3:53:28 PM
From: Puck	Respond to of 787

Jain addressed Authorize.Net's fees during the conference call, saying that they were still within the previously announced range of .7 - 1.1%, which implies that Authorize.Net is not in fact providing its services for nothing or next to nothing in order to gain market share.

To: Dan Hamilton who wrote (331)	10/25/2001 5:15:28 PM
From: howsmydrivingal	Respond to of 787

Thanks Dan, After listening to the last two (actually 3 quarters) announcements, I have come to conclude that INSP is making difficult choices yet proactive choices to rid themselves of some creative accounting, reporting, and guidance problems. They have effectively reduced their goals and will be a great stock to track based on the quarter to quarter results. It seems to be distilled into some very basic numbers. I do not have a doubt that the Authorize.net business will start showing more rapid growth in the next quarter, followed by the next quarter and so on. Wireless is doing what they can to gain market share in this down economy and if INSP can survive (looks like they are taking strict measures to ensure that possibility) it will truly be in position to benefit with the economy upturn. Read where wireless revenues were down 15% but that subs were up 15%. Hence my comment that INSP is currently not charging very much for their products in order to build market share. Could be a very good strategy since they do have some money in the bank, but it could be dangerous too if the carriers are riding the low cost provider without having brand loyalty...So this is not a proven business plan. Competition will not lessen, and losing 200 heads could save $$ yes, but at what ultimate cost to the technology. I also have become critical of carrying the market cap it now has based on the number of revenues it is willing to project along with the promise of 'hockey stick' type of growth placed further out. As I was very willing to say the risk vs reward at 1.20 a share was worth it (even more so before the last earnings call), in fact I invested heavily in the 1.40's range. I feel the market cap will retrace lower numbers before it goes higher. Like I have written, I sold out of my position after earnings were posted in after hours and will continue to follow in looking for an entry point. I feel the price will be significantly lower than the 2.15 closing price of 10/23. I read somewhere that INSP is morphing into more and more of a software supply company (not switching but growing another line of revenues) and this may be true for the Payment Platform systems of Authorize.net. Maybe this is the reason 200 less employees are needed. My biggest risk and fear of course, is that I am totally undervaluing the payment transaction business going forward and big money comes in and buys this stock straight up past the three dollar price before I have the chance at jumping back in.