Spyglass results beat estimates

The firm posts improved operating results to beat estimated earnings for the third quarter.

2 min read
Spyglass, a provider of services and products that help consumer and business electronics work with the Web, today posted improved operating results to beat estimated earnings for the third quarter.

The company attributed the improvement to a growing market for products that allow compatibility between the Web and consumer electronics.

Spyglass shares jumped more than 11 percent on the earnings news, to $13.19. The stock has traded as high as $15.38 and as low as $4.06 during the past 52 weeks. Spyglass shares closed yesterday at $11.88.

On a pro forma basis, Spyglass beat analysts' expectations, posting a net loss of 9 cents per share, an 80 percent improvement from the 45 cents per share loss reported for the same period last year. According to First Call, analysts had expected the company to report a loss of 11 cents per share.

Revenues reached $5.4 million for the quarter ended June 30, 1998, a 145 percent increase compared with the $2.2 million in revenues reported for the year-ago quarter.

"Besides our continually improving financial performance, what excites us is the fact that the Internet device market is absolutely real and we have a business model in place to capitalize on it," said Doug Colbeth, Spyglass president and chief executive.

In a statement, Colbeth added that market research firms IDC and Forrester Research project that more non-PC devices will be connected to the Internet by 2002 than PCs. He said the research also shows that the market for Internet appliances will grow to more than $16 billion in 2002.

"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. "Furthermore, for the third consecutive quarter, Spyglass has increased its sequential revenue and reduced its sequential operating losses."

During the past quarter, Spyglass announced several alliances, including deals with GTE, Philips, NEC, and Lucent.

"For the fourth consecutive quarter, Spyglass has exceeded Wall Street earnings expectations, increased revenue, and significantly reduced operating losses," Vilchick added. "All of our financial trends reflect the significant opportunities in the device market."