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Netscape Third-Quarter Revenues Reach $150.2 Million

Despite analysts' predictions of a loss the company makes a small profit.

By Elinor Mills, PCWorld   

For the three months ended June 30, 1997, Netscape reported a net loss of $44.69 million on revenues of $135.97 million.

For the third quarter this year, which ended July 31, Netscape's Enterprise software and services business grew 16 percent from the previous quarter to $111.6 million, while revenue from its portal site, Netcenter, rose 24 percent during the quarter to $38.7 million.

Netscape's operating margin improved by 6.5 points for an operating loss of $2.1 million for the quarter, compared to an operating loss of $10.1 million for the preceding quarter ended April 30.

For its second quarter, Netscape basically broke even, reporting $127.2 million in revenues and net income of $8000.

Company executives are pleased with the results, said Jim Barksdale, president and chief executive officer, in a statement. "We're seeing strong momentum in both the Enterprise software and Netcenter businesses," he said.

Netscape also announced that Bill Campbell, chair of the board of directors at Intuit, will join Netscape's board of directors, replacing John Warnock, chair and CEO of Adobe Systems. Campbell is also on the board of directors of Apple Computer.

Netscape was predicted to see a loss per share of 2 cents, according to analysts polled by First Call.

Netscape stock closed at $32.125 today, up $1.81 on the Nasdaq exchange.

Netscape's share of the browser market declined during the first half of 1998 from 61 percent in January to 52.2 percent in June, according to a usage study conducted by AdKnowledge.