CyberCash shells out
The Internet transaction-processing company reports a third-quarter loss of $7.7 million, more than analysts had predicted.
The report by CyberCash, a secure Internet transaction-processing company, amounted to a net loss of 72 cents a share for the quarter ending September 30, compared with a loss of $2.4 million a year ago. Wall Street had predicted a loss of 61 cents a share, according to First Call.
Research and development costs associated with its software, which takes transactions from customers to merchants, drove up the company's expenses during the quarter and cut into profits. CyberCash's costs and expenses more than tripled to $8.3 million during the three-month period, compared with $2.5 million during the same time a year ago.
Revenues reached $39,088 for the quarter, compared with no revenues a year earlier.
CyberCash, during the quarter, cleared a major hurdle, said William Melton, chief executive, in a statement. "We have stated from the beginning that the challenge facing the company was distribution. Now we have two of the key Internet platforms--Netscape and JavaSoft--as distribution partners," he said.