Tech companies tally earnings
It's earnings season, and a slew of technology companies have reported their results.
EarthLink Network (EKNK) shrunk its losses as it continued growing its member base.
The net loss for the third quarter ending September 30 was $7.2 million, or 72 cents per share, compared with a loss of $10.1 million or $1.44 per share for the third quarter of 1996.
Revenue was $20.6 million, a 106 percent increase over the revenue of $10 million reported in the third quarter of 1996.
These results come after EarthLink's recent announcement of a successfully completed private placement of $15.5 million.
Chips and Technologies (CHPS) reported an 18 percent drop in sales and shrinking profits as research and development expenses increased, and the outlook for the fourth quarter looks flat.
The company reported a net income of $3 million, or 13 cents a share, compared to a net income of $9.5 million, or 42 cents per share.
Revenue dropped to $36 million from revenue of $44.5 million in the quarter that ended a year ago.
Research and development expenses increased to $7.3 million from $4.5 million in the year ago quarter and were flat with the quarter ending June 30. The $2.8 million increase was primarily attributable to increases in personnel, depreciation and higher non-recurring engineering charges.
The supplier of highly integrated semiconductor and software solutions said it has in excess of 25 employees in two development programs and expects research and development expenses to increase in the December quarter primarily as a result of those projects.
Chips expects to use its existing technologies to take advantage of the potential emergence of flat panel monitors for desktop computers and is also investing in Broadband media opportunities other than the personal computer.
Rational Software (RATL) announced a loss for its second quarter ending in September, as a result of its acquisition of Pure Atria.
Net loss for the quarter was $64.6 million, or 86 cents a share, compared to net income of $10.5 million, or 12 cents a share, a year earlier.
Revenue for the quarter was $75 million, compared to revenue of $66 million a year earlier.
Check Point Software Technologies (CHKPF) announced a jump in revenue for the third quarter ending in September, due to strong demand for security software.
Net income for the quarter was $12 million, or 32 cents per share, compared with $3.7 million, or 10 cents per share in the same quarter in 1996.
Revenue for the quarter was $22.4 million, compared with $8 million for the same period in 1996, due to strong demand for FireWall-1 Version 3.0, said the company.
The company also saw high demand for encryption products to create virtual private networks that use the Internet to conduct secure business communications, experiencing a significant increase in the sales of encryption products in the first half of 1997 over fiscal 1996.
Provider of custom high-performance semiconductors LSI Logic (LSI) reported revenue of $327 million for the third quarter of 1997, up from revenue of $300 million last year.
Net income for the third quarter was $44 million, or 31 cents per share, compared to net income of $28 million, or 21 cents per share, in the same quarter last year, including costs associated with the acquisition of Mint Technology. Excluding the charges, the company would have reported a net income of $47 million, or 33 cents a share.