Another huge nail in INSP's "Wireless" coffin?
During INSP's last CC, following their Q1-2002 earnings report, didn't they indicate that they might have a potential problem regarding renewing the contract with I believe was their single largest wireless carrier client, Verizon Wireless? Verizon is one of two clients previously providing OVER 10% of INSP's revenues. And also didn't INSP also say that weren't currently including any revenues from Verizon Wireless in their future projected earnings for 2002?
During the shareholders meeting on Monday, INSP made a really big deal about all their "blue-chip" clients, mentioning Verizon many times. Well...it sure looks like one of the really REALLY "Big Boys" has stepped all over INSP's toes today, regarding their previous over-hyped fantasy of "World Dominance" in the wireless infrastructure services business. It now appears clear that Verizon has thrown a mere few scaps of income INSP's way, through their "Information Services" and "Online" divisions. Yet, it now also appears that the really big money, in terms of any major potential future "wireless" revenues, will be going elsewhere. And guess where?
Yep, Jain's old irresistible quote seems to just keep coming back to haunt him. He seems to have forgotten that Billy Gates is still the master "crusher," and his previous little pupil, Naveen Jain, is still, at the VERY most...just a mere novice grasshopper when it comes to "crushing" anyone or anything.
Jain reportedly said, "We've kicked our competitors. We've crushed them like gnats. Like Microsoft, there is no room for two players, If we enter a market, it is ours to own."
The following excerpts regarding Verizon are from Page 30 of INSP's most recent 1st Quarter 2002 10-Q:
Our revenues are attributable to a small number of customers, the loss of anyone of which could harm our financial results.
We derive a substantial portion of our revenues from a small number of customers. We expect that this concentration will continue in the foreseeable future. Our top ten customers represented 56% of our revenues for the three months ended March 31,... Overture and Verizon each accounted for more than 10% of our revenues for the three months ended March 31, 2002... We are currently in negotiations to restructure our relationship with Verizon Wireless, and we do not expect our relationship to continue in its current form. The terms of any future contract are currently uncertain. If we lose any of these customers, or if any of these customers are unable or unwilling to pay us amounts that they owe us, our financial results will suffer
Well, could the press release below that came out just today, from the master "bug-crusher," Microsoft, regarding their new "wireless" relationship with Verizon Wireless, perchance explain INSP's saying, "We do not expect our relationship to continue in its current form?" Is this where the expression, "They're dropping like flys," came from?:
biz.yahoo.com
Thursday May 23, 2002 12:01 am Eastern Time
Press Release
Source: Microsoft Corp.
Microsoft and Verizon Wireless Form Groundbreaking Alliance to Offer Superior Wireless Data Services and Applications to Consumers and Enterprise Customers
Companies Launch Nationwide Mobile Service Featuring Popular MSN Services Friday
BEDMINSTER, N.J., and REDMOND, Wash., May 23 /PRNewswire-FirstCall/ -- Verizon Wireless and Microsoft Corp. (Nasdaq: MSFT - News) today announced a groundbreaking strategic alliance to deliver co-developed and jointly marketed wireless data services featuring MSN® services and content, Windows® Powered devices, and enterprise solutions. As a result of the agreement, the MSN network and Verizon Wireless will deliver the most compelling wireless data services to consumers in the United States through a new joint service offering, while also collaborating on future next-generation offerings. Together, Verizon Wireless and Microsoft will also develop, co-brand and offer technology and services to consumers and enterprise customers across a range of devices. (Photo: newscom.com newscom.com )
The joint VZW with MSN service will launch Friday via a multimillion- dollar joint marketing and branding program, and will be available for Verizon Wireless customers who have a digital Web-enabled wireless device as well as future digital Verizon Wireless customers.
"Today's groundbreaking agreement between Verizon Wireless and Microsoft ushers in the next generation of wireless data services and devices for consumers and enterprise customers," said Steve Ballmer, CEO of Microsoft. "With the launch of the joint VZW with MSN service, the companies are combining Internet communication services and content services from MSN, the world's most popular portal destination, with No. 1 carrier Verizon Wireless' expertise to deliver highly relevant mobile services to consumers."
"The combination of our expertise and experience in developing superior wireless services with Microsoft's proven MSN services makes for a compelling combination that wireless customers can take advantage of beginning Friday," said Denny Strigl, president and CEO of Verizon Wireless. "We are confident that the Verizon Wireless and Microsoft joint offers will be a catalyst for wireless data services growth. We're live on Friday. Customers who sign up for the VZW with MSN service will enjoy a robust mobile experience that truly meets their needs."
Verizon Wireless is the broadest and most reliable wireless network service provider in the nation and MSN is the No. 1 portal destination on the World Wide Web. Together, the companies present a compelling choice for wireless consumers by offering the best mobile products and services. The VZW with MSN service enables consumers to easily access popular MSN services from any Web-enabled Verizon Wireless digital phone, including MSN Messenger Service instant messaging, which will be available for the first time in the United States as a mobile service. By combining other favorite MSN services, such as the MSN Hotmail® Web-based e-mail service, Microsoft® .NET alerts and MSN information services, with wireless network technology from Verizon Wireless, the new service will enable consumers to stay in touch with the people they care about and get timely access to personalized services and information easier than ever, coast-to-coast. This co-branded service will be the default service for new digital Verizon Wireless customers who subscribe to the wireless Web service.
Together, MSN and Verizon Wireless have committed to aggressive joint marketing efforts that include a nationwide advertising campaign, unprecedented promotion on the MSN network of services, promotions in more than 1,200 Verizon Wireless Communications Stores nationwide and thousands of retail outlets operated by Verizon Wireless and its retail partners, and direct marketing to more than 100 million consumers annually.
This strategic alliance further allows for the two industry leaders to co-develop new mobile applications in the future, such as access to location- based services and other innovative technology that will empower consumers to communicate with friends and family even more effectively.
An important component of the alliance is the shared commitment the two companies have toward the future, including the development and deployment of consumer and enterprise services. Verizon Wireless will offer groundbreaking wireless devices that include Microsoft software and wireless technology, such as Windows Powered Pocket PCs and Smartphones, to Verizon Wireless customers. Verizon Wireless will take advantage of the functionality and scalability of the Microsoft .NET Enterprise Server family and its set of Mobility Partners to become the gateway to inventive and useful mobile business productivity applications, such as mobile messaging, for wireless users in the enterprise. By mobilizing the Microsoft business desktop, users will be able to take the functionality of the Outlook® messaging and collaboration client on the road.
"The launch of the VZW with MSN service will enable consumers to easily communicate and access personalized information through MSN services they know and love while on the go," said Yusuf Mehdi, vice president of MSN. "In the future, MSN and Verizon Wireless will work together to deliver the most innovative and industry-defining mobile services ever available to consumers."
John Stratton, chief marketing officer at Verizon Wireless, said, "Today's announcement is a milestone, but just the beginning of an alignment of two of the most powerful brands today with incredible reach into the consumer space. As consumers increasingly rely on their wireless devices to manage their life, the services beginning tomorrow, as well as those products and services available to them in the future through this alliance, make Verizon Wireless and Microsoft the only choice." |
