Excerpted from 8-K filed on 01/28 by NETSCAPE COMMUNICATIONS CORP:
NETSCAPE COMMUNICATIONS CORP rpts important event, financial statements & exhibits.
ITEM 5. OTHER EVENTS.
On January 27, 1998 Netscape Communications Corporation ("Netscape")
announced a net loss of $0.22 per share on revenue of $125.3 million for the
quarter ended December 31, 1997, before the effect of a $56.3 million non-
recurring charge for in-process research and development and merger related
costs relating to the acquisitions of Actra Business Systems, LLC and Kiva
Software Corporation, and a $23.0 million non-recurring charge for restructuring
costs. After reflecting the non-recurring charge of in-process research and
development, the loss was $0.92 per share. With respect to the in-process
research and development and merger related costs, the actual charges in the
fourth quarter of 1997 were $4.0 million more than Netscape had previously
anticipated. With respect to the restructuring charge, Netscape had previously
estimated an expense in the fourth quarter of 1997 of $35.0 million, but that
charge will now be split between the fourth quarter of 1997 and the first
quarter of 1998. The restructuring charge has three components-reduction in
headcount, consolidation of facilities, and written-off intellectual property
related to systems or third-party technology. Netscape intends to take the
personnel related component of the charge, estimated to be $12.0 million, in the
first quarter of 1998.
The press release announcing these financial results is attached hereto as
exhibit 99.1 and is incorporated herein by this reference. This press release
includes "safe harbor" language pursuant to the Private Securities Litigation
Reform Act of 1995, indicating that certain statements about Netscape's business
contained in the press release are "forward-looking" rather than "historical."
A more thorough discussion of factors affecting Netscape's business plans and
competitive environment is included in Netscape's Annual Report on Form 10-K for
the fiscal year ended December 31, 1996, and in its Quarterly Reports on Form
10-Q for the quarters ended March 31, 1997, June 30, 1997 and September 30,
1997.
(End of item excerpt.) |
