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

To: Larry S. who wrote (3381)	6/2/1998 7:05:00 PM
From: Jxcxjx	Read Replies (1) \| Respond to of 4903

New Netscape strategy draws skepticism By Andrea Orr PALO ALTO, Calif., June 2 (Reuters) - Has the company that was formed with a clear vision of how it could change the World Wide Web -- and the world itself -- lost focus? Netscape Communications Corp. has not given up the battle for control of the Internet browser market. But it is radically changed from the company that pioneered Internet navigation tools and then went head-to-head with Microsoft Corp. to dominate that business. Netscape used to charge for its browsers, even though the software could be downloaded for free. But today Netscape literally gives away browsers and is working aggressively to build new businesses that can generate cash flow. And as it prepares to meet with financial analysts on Thursday in San Francisco, there is skepticism over whether the multipronged strategy can work. As Forrester Research analyst John McCarthy put it, there is a concern that Netscape is becoming a "jack of all trades, but master of none." Along with browsers, Netscape is expanding into so-called enterprise software, and working to make its Netcenter Web site (http://home.netscape.com) the gateway of choice into the Internet for consumers and business users. It has had some big successes. In May, it entered a multimillion-dollar agreement to collaborate on content and search services with Internet rival Excite Inc. Excite on Tuesday announced the collaboration had generated $21 million in advertising revenues in its first month alone. The companies are not saying how the revenues are divided. Still, Netscape is up against a vast number of competitors in both the enterprise software and the Internet service market. And it is getting up to speed at a time many view it as financially bruised from its browser wars. Late last year, Netscape laid off 400 employees and in January it reported its first quarterly loss. It rebounded last month with a break-even first quarter that was better than most forecasts. But questions remained over the accounting maneuvers used to achieve those results, and over the company's failure to provide more details about the performance of its different divisions. "You've got a company with very limited assets, yet they're trying to compete all over the map," said PaineWebber analyst Jim Preissler. "They definitely have talented people and good resources, but they may be spreading themselves way too thin." One big question is the viability of the company's enterprise software, a buzzword used to describe a vast array of products from Internet messaging to the large systems that allow internal communications within large corporations, or between companies. The market for enterprise software is huge, but the roster of competitors reads like a Who's Who in technology, including Novell Inc., International Business Machines Corp. and Microsoft. Last month Netscape announced what it called a major deal to license its electronic commerce software to Citibank, although it did not disclose the value of that deal. "Citibank is a great customer, but you've got to see more Citibanks stepping up to use (Netscape's platforms)," said Marc Usem of Salomon Brothers. Even Netscape's harshest critics give the company credit for quickly regrouping as its browser business eroded. "I've been critical of some changes, but part of that is the lay of the land, and to not change is death," Usem acknowledged. Now, he says, Netscape needs to "make it clear, in as clear terms as possible, exactly what their strategy is for their Netcenter Web business." Any confusion over Netcenter is not due to lack of trying by Netscape. The company has been rapidly adding features like free e-mail, customization and enhanced Web searching capabilities in an effort to offer all the services found on the big Internet "portals" like Excite, Yahoo Inc. , Infoseek Corp. and Lycos Inc. "They're trying to look just like Yahoo," said Preissler, who questioned whether the similarity between Web sites might pose problems for a number of these services down the line. "How the heck are they all trying to differentiate themselves? Within one year, you're not going to be able to tell one from the other." 18:25 06-02-98

To: Larry S. who wrote (3381)	6/3/1998 9:18:00 PM
From: John K. Culley	Read Replies (4) \| Respond to of 4903

Larry: Don't know if you ran across the following, but sounds like tomorrow will be an interesting day for NSCP traders/investors. Could be a rollercoaster ride! Regards, Jack Netscape to host analysts' gathering Internet software company to adds words to numbers By Brenon Daly, CBS MarketWatch Wed Jun 03 18:33:17 1998 Netscape will discuss its most-recent quarter with analysts on Thursday, which may buffet shares in the Internet software company. The company (NSCP) will be discussing its fiscal second quarter, during which Netscape broke even. Analysts expected a 10 cent per share loss. But there were some concerns, which kept the stock depressed: Revenue inched up just 1.5 percent, while sales and marketing spending jumped 27 percent. Netscape has been trying to reposition itself, shifting from a pioneer of browser software to a provider of software for businesses. Ahead of the get-together, Netscape shares slipped 1/16 to 22 5/16.