Quarterdeck posts huge loss
Buffeted by hard times all year, Quarterdeck reports a whopping net loss of $75 million for 1995.
The company pointed to a delay in developing some Internet markets, slow demand for its memory management products, and one-time charges for acquisitions and restructuring as contributing to the earnings hit.
Quarterdeck had reported net profits of $11.2 million a year ago. Revenues, meanwhile, reached $133.1 million for the year, up 13 percent over the previous year.
But despite the year-end increase in demand, the company's revenue has fallen in the last two quarters by more than half that posted during the first six months of the year. The company reported fourth-quarter revenue of $19.7 million, a 37 percent drop from a year ago and less than half of the $46.7 million of the second quarter.
Quarterdeck also reported a net loss of $54.8 million for the quarter ending September 30, compared with net profits of $277,000 a year ago. And the quarterly loss marked the third-consecutive quarter that earnings declined.
"During the September quarter, we took important steps in our restructuring efforts aimed at implementing our new strategic plan," said King R. Lee, president, in a statement. As part of that new direction, the company formed three key business units, utilities, communications and Internet solutions and direct marketing.
Analysts said the success of the company's strategy should be known in the next two quarters.
"They have multiple products in their portfolio and are now finding out if its worth keeping them and are streamlining," said Tarun Chandra, analyst with Laidlaw Equities. "Over the next two quarters, we'll see how valuable their strategy is."