Netscape estimates an operating loss on Microsoft rivalry, as stock falls 21%
Article Abstract:
Netscape's stock price dropped by 21% after projecting 4th qtr 1997 losses of $85 million to $89 million, or 88 cents to 92 cents a share. The company attributed the results, its first operating loss since going public in 1995, to rival Microsoft's marketing campaign in the Internet software market. The Netscape loss includes $52 million in one-time merger costs and $35 million for layoffs and other restructuring moves. Netscape still would have lost $14 million to $18 million, or 15 cents to 19 cents a share, without the charges. By comparison, First Call reported analysts' projections for profit of 14 cents a share. Netscape stock, which set a 52-week high of $59.25 in Jan 1997, fell by $4.8125 to $18.5625 in Nasdaq Stock Market trading. CEO Jim Barksdale said Microsoft's free Internet Explorer browser software pressured Netscape to lower prices, especially on its Navigator browser. Microsoft will exert its strength in setting more Internet technology standards and marginalize Netscape, according to some observers.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Netscape posts profit, beats expectations
Article Abstract:
Netscape reported an $8,000 profit and $127.2 million revenue for the 2nd qtr 1998. Wall Street analysts had expected the struggling Internet software company to report a loss of around 10 cents a share on sales of $115 million to $120 million for the quarter ended Apr 30, 1998. A one-time gain in securities transactions helped Netscape counter an operating loss of $10.1 million, or eight cents a share. Revenue improved from the 1st qtr 1998's total of $125.3 million. Netscape's recent shift to a calendar year spanning November through October renders year-earlier comparisons irrelevant. The company reported a $54.2 million loss, or 58 cents a diluted share, on revenue of $8.3 million for its 'stub' period of Jan 1998. Some analysts said the complex reports indicate that Netscape is not collapsing amid Microsoft's attack against its World Wide Web browser software.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Microsoft's net outpaces expectations. Microsoft says results to top expectations. Microsoft net, profit margins climb sharply
- Abstracts: TCI takes back $125 million stake in Microsoft Network as strategies shift. Microsoft picks on-line news from PointCast
- Abstracts: Foot in the door; Microsoft says it already has a set-top box. It's called WebTV. Borland suit says Microsoft lured workers
- Abstracts: Upcoming book to provide grist at the Microsoft trial; company intends to shift focus to Netscape
- Abstracts: Internet brokers chart the European investor. Linking classrooms, a world apart, via the Internet. Internet changing how research centers work