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Spyglass profits drop

Citing internal investments and additional hiring, Spyglass discloses lower profits for its fourth quarter.

Spyglass (SPYG) today reported lower profits for its fourth quarter.

Net income for the fourth quarter was slightly lower at $1 million, or 8 cents per share, compared with $1.2 million, or 9 cents per share, for the same period last year. The company met analysts estimates of eight cents a share, according to First Call, which compiles analysts' reports.

Spyglass spokesman Randy Pitzer attributed the earnings decline was to internal investments and additional hiring.

Revenues for the quarter rose 54 percent to $6.6 million over $4 million last year.

For the fiscal year ending September 30, revenues increased 84 percent to $22.3 million over last year's period. Net income was $3.5 million, or 27 cents per share, up from last year's $2.2 million, or 21 cents a share.

With increased revenues and static net income, Spyglass said an increase in research and development spending may lead to a loss in the first half of fiscal 1997.

"Potentially in the first half we could see us losing a few pennies per share," CFO Gary Vilchick said. "In second half we could see profitability returning."

In other news, Spyglass licensed its Web Client Software Development Kit to WorldGate Communications to bring browser technology to WorldGate's online television cable service. This service, scheduled for January, brings high-speed Internet access, email, chat, and newsgroups to ten million cable subscribers. Pitzer said that Spyglass will receive royalties from this deal, increasing company revenues.

Spyglass also appointed Rich Houle to a newly created position, executive vice president of development and services. His responsibilities will include product development and customer support.