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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: David who wrote (8534)	4/17/2002 12:02:18 PM
From: Dale Baker	Respond to of 10293

I don't have a position in IDNX or strong feelings either way, just posted a blurb I saw that seemed relevant. IDNX doesn't strike me as a good risk/reward play long or short given the uncertainty about just how well the technology will be accepted in the future. You think it will grow a lot and costs will be reduced; Bill doesn't. Good luck to all.

To: David who wrote (8534)	4/18/2002 8:53:52 AM
From: stockskeptic	Respond to of 10293

I know they claim they are anticipating early profitability after the merger. I just don't believe them. Look at it this way: IDNX alone has been running a loss of about $6M a quarter. VSNX revenues have been about $8M a quarter, with costs and expenses of about $9M a quarter. So if by absorbing VSNX, IDNX were able to add those $8M in revenues while having NO increase in costs or expenses, they would have a profit of $2M a quarter. The question then becomes, how many costs do you believe they are gonna cut? If by some miracle they manage to cut $7M of the $9M VSNX spends every quarter, they will be at break even. If you think they can do even close to this well, I have a bridge to sell you . . . Disclosure: I am short IDNX.