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Technology Stocks : CyberCash a buy? -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (909)	4/12/1998 8:33:00 AM
From: john shoemaker	Read Replies (1) \| Respond to of 3990

Read the following article posted a few weeks ago. With the merger with ICVerify, they don't expect to break even til early 1999 now. Break even pushed from 4th qtr to early 1999? The following is from the Washington Post: New at the Top: James J. Condon By Heather Salerno Monday, March 30, 1998; Page F17 Position: Appointed chief operating officer for Reston-based CyberCash Inc., which makes technology that allows merchants to accept payments over the Internet. Condon, who joined the company last year, will continue serving as chief financial officer. Two weeks ago, CyberCash announced plans to acquire ICVerify Inc., an Oakland, Calif., firm that develops software that processes credit cards, ATM/debit cards and check transactions. What do you think will be the largest market for CyberCash in the future? "We really believe the line between direct Internet commerce to the user and what I call the walk-around world will blur. ... Merchants are looking for one e-commerce solution from end to end and more people are ordering over the Internet from places like L.L. Bean and Macy's. As those two worlds merge, and it lowers the cost of doing business, we think Internet payments as a whole will really move forward." It seems as if the excitement surrounding electronic commerce is slowing. Do you think this market still has the potential for rapid growth? "Let's put it this way: Sales in the average [retail] store were basically flat. But the amount of business conducted over the Internet grew by three times. With companies like Dell Computers selling $3 million in PCs per day on their Web site, it's clear Internet commerce is picking up." Last quarter you posted a $5.1 million loss, but the loss from previous quarters has narrowed. When do you expect CyberCash will be profitable? "We thought we'd break even the fourth quarter of this year, but now with the merger of ICVerify, it will probably be early 1999.... With ICVerify we've gained an enormous market share." Career highlights: Before coming to CyberCash, Condon was director of performance improvement services for accounting firm KPMG Peat Marwick LLP; corporate vice president of financial planning and administration and vice president of operations for Legent Corp. Shoe

To: TLindt who wrote (909)	4/12/1998 10:57:00 AM
From: Mark Fowler	Read Replies (1) \| Respond to of 3990

>>To do that CyberCash needs to grow revenues by nearly 300% in that 12 month time frame. IF they do hit that target it will be fully reflected in the price of our shares. This coming Quarters results are going to determine the pace of advance or lack of it from here.<< Tom, I agree the coming qtrs. will determine this. There are uncertainties and risks in the companies current expectations for revenue growth; however if growth in the internet and e-commerce continues at its current fast pace, and Yhoo's last qtr. earnings sure shows this [go Yhoo], I think they will have no problem with the 300% in revenue growth for the yr. The earnings from the merger should add to the revenue stream in the 2nd qtr. of this yr. too. And if they hit on all cylinders this qtr. this stock will not sit there waiten for investors to put-up, by then it'll be to late. I'm not worried about this, I see a better than 50/50 chance the revenues will be there, it'll happen. I also outline some key important excerpts from the Cos. last qtrly. report below for you to review and the good people of this thread. -- The number of merchants using CyberCash's services increased by over 50% and the average number of transactions per day increased by over 100% during the fourth quarter. -- CyberCash reported revenues of $4.5 million for 1997, up from $127,000 in 1996. -- CyberCash became the only Internet payment company handling payments in a multiplicity of currencies, including the yen, the pound and the mark. -- The Company intends to continue to develop strategic relationships with financial institutions and technology companies around the world with a view toward expanding its range of offerings and broadening its geographic coverage. -- CyberCash is undertaking a large-scale campaign aimed at increasing the number of merchants -- and thus the number of transactions -- using its payment services. The Company's strategy is to work with merchants, technical partners, Internet service providers, store builders and major credit card processors to bring CyberCash's advanced technology to the attention of a wider audience. -- The Company is adjusting its business model and fee structure to reflect the increasing acceptance of CyberCash's suite of Internet payment services as well as e-commerce in general. CyberCash is now charging merchants an initial set-up fee -- which was previously waived -- and a monthly service fee based on the number of transactions that take place. This new fee structure is intended to have a positive impact on the Company's revenue stream. -- CyberCash is putting additional emphasis on its PayNow(TM) Secure Electronic Check Service. The Company sees significant revenue growth potential in this market, because of the many benefits businesses can realize through electronic bill presentment.