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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: Marc who wrote (6644)	8/12/1998 1:48:00 AM
From: pat mudge	Read Replies (2) \| Respond to of 8545

I admire Mr. Kight for his forthrightness in re-stating estimates for the coming year. Out of all that was said in today's release, the following quotes stand out: Kight said the Company's new fiscal 1999 plans call for revenues of $245 to $250 million and earnings per share of 12 to 16 cents, compared with previous expectations of $265 to $270 million in revenues and earnings per share of 32 cents. He also said the Company expects a loss of 4 to 6 cents per share in the first quarter. . . . We will continue to fund projects that expand our core financial electronic commerce offerings, drive intuitive ease of use, guarantee service quality at a dial-tone level, and enhance the seamless end-to-end customer care we offer to banks, billers, and their customers," he added. . . . CheckFree also announced that CFO James S. Douglass, 33, now serves in the newly-established role of executive vice president, mergers & acquisitions. Douglass will focus on identifying and executing mergers and acquisitions that strengthen CheckFree's leadership in financial electronic commerce by extending or broadening existing services. 1) Revenues will be $245 to 255 million. Forget what was forecast. Numbers at this point are relative. If the earlier projection had been for $200 M in '99 and then been upped, would $245 to 255 M be a disappointment? 2) Funds will go towards expansion. What better use of revenues? I suppose the question to ask is if mergers and acquisitions will be accretive. 3) A new executive position has been created solely for the purpose of expansion. I'd say they're serious. I've been in CheckFree for nearly a year and not once have I thought it was a short-term investment. Today we've been handed a blueprint and we have a choice of applauding the sturdy foundation or bemoaning the fact the clerestory windows won't be in for another year. I'm setting my alarm for 4:50 PDT. Don't want to miss the conference call. Pat