Struggling with falling subscriptions and Wow investments, CompuServe has posted a fiscal first-quarter net loss and plans to eliminate 150 jobs.
As a result of the announcement, CompuServe shares this morning opened at 12-1/2 and are currently down 1-7/8.
CompuServe posted a net loss of $29.6 million, or 36 cents a share for the first quarter ending July 31, compared with net income of $26.8 million, or of 36 cents a share last year.
The number-two online service attributed the loss to a significant decrease in subscribers and investments in its stunted Wow startup, which was targeted at novice online users but has recently been brought into the core service. CompuServe expects a second-quarter loss of approximately 10 to 15 cents per share.
CompuServe's parent H&R Block took the company public in April at $30 per share as part of a companywide spin-off.