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High-flyer falls

NetManage, ranked last month as the fastest-growing Silicon Valley company, reports a 97.3 percent drop in profits for the quarter as sales slowed while customers waited for the release of Microsoft Windows NT.

NetManage (NETM), ranked last month as the fastest-growing Silicon Valley company, today reported a 97.3 percent drop in profits for the quarter as sales slowed while customers waited for the release of Microsoft Windows NT.

NetManage, a corporate intranet software maker, reported net profits of $200,000, or 1 cent a share, for its third quarter ending September 30, compared with 7.6 million or 18 cents per share a year earlier. Last year's figures were restated to include the combined operating results of AGE Logic and NetManage.

Wall Street had been expecting NetManage to report earnings of 3 cents a share, according to First Call. Revenues during the quarter fell to $25.4 million, down from $35.3 million a year ago.

"Our performance in the third quarter reflects an overall industry trend characterized by a delay in implementation of Windows 95 and NT by customers, and general confusion over the future direction for desktop platforms by corporate accounts. Many customers have been waiting for the release of Windows NT 4.0, which only recently shipped," said Zvi Alon, the company's chief executive and president.

NetManage, which develops and markets development tool software for Microsoft Windows, Windows 95, and NT, last month came in first in a ranking of the 50 fastest-growing Silicon Valley technology companies.

The award was part of the second annual Silicon Valley Technology Fast 50 awards, which selected companies based on their revenue growth between 1991 through 1995. NetManage, during this time, saw its revenues soar to $125.5 million from $427,000.