Spyglass shares drop on revenue warning
Shares of the Web software developer plunge more than 29 percent after the company announced that it expects lower than anticipated revenues for its 1999 first quarter.
The company said that net revenues for the first quarter ended December 31, based on a preliminary analysis, are expected to be between $4.3 million and $4.7 million. Spyglass anticipates that the loss per share for the quarter will be between 14 cents and 16 cents per share.
The company posted a loss of 28 cents per share for the year-ago quarter.
The company said the primary reason for the expected shortfall was that technology licensing revenues associated with several significant transactions were expected to close but did not.
Spyglass stock fell 29.55 percent, or 6.5 points, to 16.5 in morning trading. The stock has traded as high as 32.25 and as low as 4.25 during the past 52 weeks.
"While we are disappointed with the results for the quarter, we remain confident in our long term growth strategy of providing Internet device solutions and integration services to the world's leading device manufacturers and Internet services providers," Spyglass CEO Douglas Colbeth said in a statement.
In October, Spyglass announced a three-year, $20 million joint venture with General Instrument to develop Net-based cable technologies and services.