And more news:
news.com
Netscape stock falls,
rebounds
By Dawn Yoshitake
January 28, 1998, 12:30 p.m. PT
update Shares of Netscape (NSCP) fell more than
12 percent in morning trading today, before
rebounding slightly following the company's release
yesterday of disappointing fourth-quarter results.
Netscape shares fell as low 14-7/8 in early morning
trading, down from yesterday's
close of 16-7/8. In mid-day
trading, however, the shares
recovered somewhat, and were
down only slightly.
The Internet software company posted a larger loss
than Wall Street had expected, and said also that it
would lay off 9.4 percent of its workforce, or 300
employees, by the end of March.
Netscape posted a net loss of $88.3 million for the
quarter, compared with a profit of $8.2 million
posted a year ago. Although a large portion of the
loss was from restructuring and acquisition charges,
the company also was hit with
slower-than-expected sales in its client and
corporate software product lines.
Revenues reached $125.3 million for the quarter,
up from $115.2 million a year ago.
Out of the 11 analysts that report their expectations
to First Call, all 11 have revised downward their
Netscape estimates for the current quarter. The
consensus earnings-per-share estimate for
Netscape's current quarter is a 10-cent-per-share
loss. For fiscal 1998, analysts are expecting the
company to break even.
Today's market activity has resulted in some
changes in analyst recommendations as well. Two
firms downgraded Netscape to "hold," one from
"strong buy" and the other from "weak buy." |
