Shares in OpenTV Corp. (Nasdaq: OPTV) soared Friday after the maker of interactive TV software, which is set to merge with Spyglass, beat estimates on a sharp rise in revenue.
OpenTV was up 12 13/16 to 90 13/16, after rising 29 percent in pre-opening trading on the Instinet electronic broker system. Shares were well off its 52-week high of 245 3/4. Spyglass (Nasdaq: SPYG), which closed at 49 3/4, reported a surprise profit in its second quarter.
After markets closed on Thursday, OpenTV reported an 87 percent rise in first-quarter revenue.
Royalties from the first-quarter were $7.7 million, an increase of 164 percent from $2.9 million in the first quarter of 1999, and an increase of 63 percent from $4.7 million reported in the fourth quarter of 1999. The company attributed growth to the spread of digital interactive television worldwide.
Its per-share loss widened to 5 from 3 cents a share in 1999's first quarter. First Call had been expecting a loss of 10 cents a share.
Aside from its merger agreement with Spyglass, OpenTV also inked a deal with EchoStar Communications (Nasdaq: DISH) in February 2000 to develop a low-cost, one box device for interactive television.
OpenTV competes with Liberate Technologies (Nasdaq: LBRT), Microsoft (Nasdaq: MSFT) and Wink Communications (Nasdaq: WINK).