After losses, NetManage slumps

Stock in the PC connectivity software company falls 3/8 to close at 3-1/8.

2 min read
Shares of NetManage (NETM) fell more than 10 percent today, as the company continued to post mounting losses after reporting its second-quarter results.

Stock in the PC connectivity software company closed at 3-1/8, down 3/8 from yesterday.

NetManage reported a net loss of $4.5 million, or 10 cents per share, for its second quarter, compared with net profits of $1.6 million, or 4 cents, a year ago. These results mark the latest in a string of poor fiscal periods for the firm.

Revenues for the quarter came in at $12.7 million, down from $26.8 million for the same period last year.

NetManage's current woes are an indicator of how quickly things can change in Silicon Valley. Last September, the company was ranked first in the Silicon Valley Technology Fast 50 awards, in recognition of its revenues jump to $125.5 million in 1995 from $427,000 in 1991.

Revenues for the first six months of NetManage's fiscal 1997 were $29.1 million, nearly half the revenue for the first six months of 1996. Losses for the 1997 period totaled $7.3 million.

Company officials said the recent acquisition of NetSoft and the introduction of new products toward the end of the period should reap rewards in future quarters.

"Our second-quarter revenue results were disappointing, particularly within the international marketplace," NetManage president and CEO Zvi Alon said in a prepared statement. "Although the turnaround steps we have initiated have not yet produced the desired results, we hope that they will positively impact future financial performance."