Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Solutions (NSOL) -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (693)	3/30/1999 8:57:00 PM
From: stockvalinvestor	Read Replies (2) \| Respond to of 1377

Dain Rauscher Wessels (Sigmond, Steve 612-313-1223) NSOL NSOL; B-Agg.; March Quarter Ending On A Strong Note March 30, 1999 Cameron P. Steele csteele@dainrauscher.com (612) 313-1224 * We believe Network Solutions' March quarter is ending on a strong note. * We continue to like the company's market positioning, despite the uncertainty regarding the Department of Commerce negotiations. * Our estimates and Buy-Aggressive rating are unchanged. March Quarter Ending On A Strong Note; Update On Commerce Department Pricing Negotiations End-Quarter Update: We believe Network Solutions' March quarter is ending on a strong note. On March 9, the company announced that it had reached four million domain names. Linearizing this growth, which we believe is a reasonable assumption, would put the company at 4.21 million domains on March 31, representing 852,000 new registrations for the quarter vs. our estimate of 625,000. At $35 per domain per year, this would represent incremental annualized revenues of nearly $8 million. We believe this strength is the result of several factors, including better-than-expected progress with indirect channels, robust international growth, and a continuing "gold rush" mentality among corporations registering trademarks and brand names. We also believe that the Dot Com Mail e-mail service ($4.95 per month) is doing very well. Dot Com Directory, another new service, remains on track to roll out in June. Background On Pricing Negotiations: Network Solutions currently charges $35 per domain per year for a bundled combination of registry and registrar services. Going forward, the company will maintain its exclusive status as registry for the most important Internet top-level domains (TLDs), and will compete with other registrars to sign up customers in the registry. Network Solutions is actively negotiating with the Department of Commerce regarding how much it will be allowed to charge for its registry services. Several weeks ago, the company proposed a price of $16 per domain per year; the Commerce Department has yet to respond. We expect a response within the next few weeks, followed by a series of counter-proposals from both sides