Rocky Mountain Internet posted a loss in line with Wall Street expectations, as revenue for the third quarter rose 62 percent to $2.56 million. The Internet service provider lost $743,000, or 9 cents per share, in the third quarter, excluding charges from its cancelled merger with Internet Communications. Rocky Mountain said it was hit with approximately $3.8 million to $5.2 million in costs following the failed merger. Internet Communications has since filed suit against Rocky Mountain, and is seeking $30 million in damages. Rocky Mountain contends the suit is without merit.
DVD ROM software could generate revenues of $100 million annually by 1999, and will begin to take revenues away from CD-ROMs beginning in 1997, according to a research report from SIMBA Information. In 1995, $1.47 billion was spent on multimedia CD-ROMs in the United States, and sales are estimated to increase 74 percent to $2.56 billion in 1996 before DVD ROM and online multimedia start encroaching its territory.