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

To: EPS who wrote (3267)	5/26/1998 6:07:00 PM
From: Winston Kim	Read Replies (3) \| Respond to of 4903

Even briefing.com knows the numbers are incorrect...this stock will tank hard tomorrow...All longs better exit..but wait until I short this dirty pig in the morning....hahaha...this is going back to the teens... Netscape Communications (NSCP) --UPDATE--: Some funny numbers in the Netscape earnings report. NSCP changed its reporting period to the quarter ended April from the quarter ended March. As a result, there was a gap of one month between its last report for the December quarter and its current report for the April quarter. That gap was January, and it looks like NSCP shoved a lot of bad news into what it hoped would be a black hole. Check out the following table of monthly averages for the February-April period versus the actual numbers for January. How is it that revenues plunged in January, yet the cost of revenues were normal? One explanation would be that revenues in January were about normal, but that Netscape did not recognize them until the February-April period, thus packing losses into January. It also looks as if some expenses might have been pushed back into January to improve the Feb-Apr results. We can't be certain that our suspicions are correct until we've heard the conference call, but it appears that NSCP is still losing money at a good clip -- in the Jan-Apr period, they lost $0.58 per share, which is a better indication of their performance than the breakeven result for Feb-Apr. Our analyst on the invitation-only call will report back in tonight's Stock Brief. Netscape January Feb-Apr Avg Revenues $8.3 mln $42.4 mln Cost of Revenues 6.7 mln $6.8 mln Operating Expenses$56.5 mln $39.0 mln EPS -$0.58 $0.00