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

To: jabbo who wrote (930)	4/12/1998 10:07:00 PM
From: john shoemaker	Read Replies (1) \| Respond to of 3990

Before I go deeper into this stock, I'll wait and see what they have to say about this quarter ending. Hopefully there will be a conference call we can listen to. Don't blast me for the next few remarks, I'm still positive on CYCH, but it is something to take a look at. From 10-K (1997 Results) During 1997, the majority of the Company's revenues were derived from licensing its technology and fees for development work associated with licensing activities. While the Company anticipates that recurring revenues from fees paid by merchants and other customers will represent an increasing proportion of its total revenues during the next several quarters, revenues from licensing and development will continue to be material. Revenues from these sources are generally less predictable and more inclined to vary from period to period than revenues from fees paid by merchants and other customers. Accordingly, the Company may experience significant fluctuations in future quarterly operating results. CCKK will pay CyberCash $100,000 plus its fully-burdened costs of performing this work, not to exceed $1,100,000. During 1997, the Company recognized revenues of $597,000 from work performed under the Software Development Agreement. CC GmbH has agreed to pay CyberCash DM 3,600,000 (approximately US $2,100,000) for the initial licensing of the technology, in addition to annual maintenance fees of $80,000. The Company recognized $2,045,000 in revenues during 1997 from CC GmbH and this amount was included in accounts receivable as of December 31, 1997. The Company's net revenues in 1997 were primarily from three customers who have licensed CyberCash technology for use in foreign markets and who provide services in the banking and transaction processing industries. Revenues from these customers totaled approximately $2,045,000 (46%), $1,028,000 (23%), and $597,000 (13%). Looking at the above, 81% of the 1997 revenues were one timers. The Germany bank deal will provide 80,000 annually in revenues, yet they don't specify annual maintenance fees for the other two. Need to really look at the revenues they generate in the first quarter. If the revenues are up and we don't see these big one time revenue jobs, then the future really looks bright. Hopefully they will be generating annual maintenance fees with all of their customers in the future which will result in a nice consistent revenue base. I have still yet to see any per transaction fee in writing anywhere. The total 1997 revenues of 4,487,173 less the above revenues leaves 817,173. I'm willing to bet that their per transaction fee is higher than most of us think. I would really like to know exactly how they price their service, if anyone knows, please let me know. Thanx, Shoe