General Magic was, until last quarter, focused on the handheld computer market, but after some previous financial downturns, the company had hoped to recover by recasting its products for use on Internet appliances. It's too early to tell if the new focus will fix the company's problems, but so far the move hasn't helped profits.
For the quarter that ended June 30, the company lost $11.6 million, or 45 cents per share, on revenues of $1.1 million. That compares to a loss of $6.5 million, or 26 cents per share, on revenues $1.9 million for the same quarter a year ago.
Such poor quarter earnings resulted due to a double : revenues from the licensing of its products declined, while at the same time, its research and development costs grew 52 percent over last year to $7.4 million as a result of developing the new family of products for the Internet.
PC Quote, which provides online stock and market quotes as well as news to securities professionals, is meanwhile declaring to have become too popular for its own good. The company said that, as a result of getting over 1.5 million hits a day, staffing had to be increased and equipment added as well. The overall result for the second quarter ending June 30 was a loss of $260,000, or 4 cents per share, compared to a profit of $383,890 for the same quarter last year.
The company, however, is not too unhappy about its numbers. Revenues grew 38 percent to $4.4 million. In the first six months of 1996, revenues have increased 31 percent more than the same period last year.