Liberate beats 2Q targets, raises 3Q guidance

Liberate Technologies (Nasdaq: LBRT) topped analyst estimates in the second quarter and boosted its targets for the third quarter.

After market close Wednesday, the vendor of software for set-top boxes reported a fiscal second quarter loss of $6.9 million, or 7 cents per share, excluding special charges. First Call's survey of 11 analysts predicted a loss of 17 cents per share.

Shares of Liberate rose to 12.75 in afterhours activity on the Island electronic communications network, immediately following the release of quarterly results. Liberate fell 2.375 to 11 in Wednesday's regular trading ahead of the second quarter report.

Also Wednesday, Liberate said it sees a third quarter loss of 12 to 14 cents per share, on revenue of $12 million to $13.5 million. First Call consensus was predicting a loss of 18 cents per share for the third quarter.

The company sees a loss of 41 to 46 cents per share on revenues of $46 million to $49 million for the full fiscal 2001. Analysts consensus currently forecasts a loss of 65 cents per share.

Including all amortization and other charges, Liberate lost $68.4 million, or 66 cents per share in the second quarter.

Second quarter revenue increased 93 percent year-over-year to $11.7 million. License and royalty revenue rose 196 percent.

Total deployments of Liberate's software exceeded more than 700,000 subscribers at the end of November.>