Spyglass revenues drop
As the company transitions from the desktop to the Internet device market, its revenues drop significantly from a year ago.
The company, which builds Net filtering and Web access software, reported revenue of $5 million, down 58 percent from the $12 million reported in the same quarter a year ago. The second quarter a year ago included a one-time $8 million payment from Microsoft. Revenue increased 18 percent from first quarter fiscal 1998.
The net loss was $2.5 million, or 19 cents per share on a diluted basis, compared to a net income of $2.1 million, or 16 cents per share, a year ago.
Wall Street was expecting a loss of 20 cents a share, according to First Call.
The company said that its loss is an improvement over the first quarter and the same quarter a year ago, when there was the one-time Microsoft payment and a one-time restructuring charge.
"When you look at the results on a comparable basis, excluding the one-time events recorded during last year's second quarter, Spyglass recorded much improved revenue and significantly reduced operating losses," said chief financial officer Gary Vilchick in a prepared statement.
The company's stock, which bottomed out in December with a low of 4-1/16, powered back to hit a 52-week high of 15-3/8 earlier this month. Today it gained nearly 1 point from yesterday?s close of 12-7/8.
The company said that is continues to strengthen its position within the Internet device marketplace. Spyglass develops Internet technologies that enable various non-PC devices to work with the Internet.
During the quarter, the company released new products, such as its Spyglass Prism 2.0 and Spyglass Device Mosaic 3.0 and the beta release of SurfWatch@Work. The company also expanded its international operations by opening an office in Tokyo.
Spyglass also cut less than 10 percent of its staff--about 10 to 15 workers--as part of a corporate reorganization announced on February 25.