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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: prakash who wrote (7604)	2/11/1998 1:53:00 PM
From: Hawk	Respond to of 13594

Prekash I don't think it was a mistake. H.

To: prakash who wrote (7604)	2/11/1998 1:57:00 PM
From: Keith J	Read Replies (1) \| Respond to of 13594

Anyone know how AOL is carrying the XCIT shares on the balance sheet? I would imagine at cost, but you never know with this company. KJ

To: prakash who wrote (7604)	2/11/1998 2:02:00 PM
From: The Duke	Read Replies (1) \| Respond to of 13594

>>Looks like AOL sold about $4M of Excite shares in each of last two quarters. Unlike the Q1, AOL did not break out the Q2 EPS to reflect this gain. << Prakash, is this really true? I remember last quarter they announced earnings of .16 a share, and then it turned out that .04 was capital gain on excite shares. If .04 cents of this quarter was excite, then that means that they missed by .03, that they have no quarter over quarter growth, and that net operating margins are down. I find all of this hard to believe, and the market doesn't know this. Can you substantiate this with a link or something, this sounds juicy. eric

To: prakash who wrote (7604)	2/11/1998 2:13:00 PM
From: The Duke	Read Replies (1) \| Respond to of 13594

here is what i found on ML/AOL NEW YORK (Dow Jones)--Although fiscal second-quarter earnings at America Online Inc. (AOL) beat Wall Street expectations, analysts warned that a network cost benefit the online service provider recorded in the quarter may be hiding the full impact of a drop in gross margins. As reported, America Online posted net income of $20.8 million, or 17 cents a diluted share, compared with a loss of $129.1 million, or $1.37 a diluted share, during the year-ago period. Revenue rose to $592 million from $409.4 million in 1996. Earnings per share for the latest quarter were a penny above consensus expectations. But Lauren Rich Fine, an analyst at Merrill Lynch & Co., noted that results may have been helped by a $17 million network cost accrual benefit. The analyst wasn't immediately available for comment. She did keep her ratings for the on-line service at a short-term accumulate and long-term buy.