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

To: Hawk who wrote (7772)	2/13/1998 7:21:00 AM
From: sam	Respond to of 13594

Article in today's Wall Street Journal: "AOL Cuts 105 Jobs, Warns of Pressures on Quarter's Profits" p. B6.

To: Hawk who wrote (7772)	2/13/1998 7:21:00 AM
From: prakash	Read Replies (4) \| Respond to of 13594

Hot... Hot... Hot... Earnings warning from AOL.... From WSJ: AOL Cuts 105 Jobs, Warns of Pressures On Quarter's Profit DULLES, Va. -- America Online Inc. laid off 105 employees, the result of a restructuring unveiled earlier this week, and warned analysts that heavy use of the service might squeeze earnings in its fiscal third quarter. Despite the potential pressure, which could trim third-quarter earnings by two to three cents a share, AOL told analysts it remains comfortable with Wall Street's full-year expectations. Analysts' mean earnings estimate for the fiscal year ending June 30 is 91 cents a share, according to First Call. AOL announced a 10% price increase earlier this week, responding to heavy usage, it said. That increase goes into effect in April, too late to help earnings in the current quarter. But additional revenue in the fiscal fourth quarter is expected to offset any shortfall, analysts said. Separately, AOL confirmed that it eliminated 40 jobs at its Entertainment Asylum Web site and 65 jobs at its WorldPlay interactive-games unit. The Entertainment Asylum cuts were related to the restructuring, which recombined AOL's effort to develop interactive programming with the core on-line service, AOL said. The WorldPlay layoffs resulted from cancellation of a game project. AOL employs a total of about 9,000 people. Shares of AOL rose $2.50 to $117 in yesterday's New York Stock Exchange composite trading. --- Journal Link: Join an on-line discussion about America Online's future at The Wall Street Journal Interactive Edition at wsj.com