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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan? -- Ignore unavailable to you. Want to Upgrade?

To: Don Kleppinger who wrote (2165)	1/28/1998 7:26:00 PM
From: Leo Francis	Read Replies (1) \| Respond to of 4903

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."