Spyglass stock down on earnings news
News that the Net software company expects to post a larger-than-anticipated loss for its third quarter sends its stock south.
Spyglass shares closed at 7-15/16 today, down 1-1/16 from yesterday.
The company announced yesterday that it expects to report losses that exceed analysts' expectations for its third quarter ending June 30. The news pushed the the Internet software and services company's stock down to 8 from yesterday's close of 9. The company made its preliminary announcement after the market's close.
Citing sluggish sales, Spyglass said its net loss is expected to range between 26 to 28 cents a share for the period ending June 30. Wall Street had expected a loss of 12 cents a share, according to First Call.
Spyglass noted that many Internet products are still in their early market stages and that only major players appear willing to invest in them.
Revenues, which have been fluctuating since the first quarter after a year of steady growth, are expected to range between $2 million and $2.3 million. In the year-ago period, Spyglass reported net profits of 7 cents a share on revenues of $6 million. And in the previous quarter, the company reported revenues of $12 million and profits of 16 cents a share.
Spyglass's revenues received an $8 million boost from a one-time payment from Microsoft (MSFT) to settle a dispute over royalties owed for using Spyglass's Mosaic browser technology in the Internet Explorer browser.
Microsoft agreed to purchase all current and future royalties with a one-time $7.5 million cash payment and $500,000 worth of software and maintenance.