Netscape breaks even in latest quarter, posts loss in January

Netscape Communications has announced that it broke even in the three-month period ending April 30, reporting revenues of $US127.2 million and handily beating analysts' forecasts of a loss. Following a fourth-quarter 1997 net loss of US$88.3 million, or 92 cents per share, including one-time charges related to mergers and restructuring, Netscape implemented a restructuring program in January which included layoffs, and said it was focusing the company on enterprise software sales.

Netscape Communications has announced that it broke even in the three-month period ending April 30, reporting revenues of $US127.2 million and handily beating analysts' forecasts of a loss.

The Wall Street consensus estimate collected by First Call was of a loss of 10 cents per share. Net income for the period was $8,000, Netscape said.

However, because Netscape shifted the end of its fiscal year from December to October, the company recorded a loss for the month of January of $54.2 million, or 58 cents per share, on revenue of $8.3 million, the company said.

Following a fourth-quarter 1997 net loss of US$88.3 million, or 92 cents per share, including one-time charges related to mergers and restructuring, Netscape implemented a restructuring program in January which included layoffs, and said it was focusing the company on enterprise software sales.

"The results announced today signal two exciting points: first, that Netscape's strategy is resonating with the marketplace and, second, that Netscape is executing well against that strategy," Jim Barksdale, president and chief executive officer, said in a conference call. "Our decisions to broaden our enterprise solutions business through acquisitions and to invest in our Internet portal site are now bearing fruit, with both parts of the business showing steady growth."

For the second quarter, which was composed of the three months ended April 30, enterprise software and services comprised $96.1 million in revenue while revenue from the Netscape Netcenter World Wide Web site was $31.1 million, the company said.

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