Netscape Communications’ 2nd-Quarter Profit Plunges

Netscape Communications Corp. on Tuesday said profit for its second quarter ended April 30 plunged, as sluggish sales of its corporate software failed to offset a drop in revenue from its Internet browser.

The Internet software maker’s net income was $8,000, or break-even on a per-share basis, compared with earnings of $7.31 million, or 9 cents, for the quarter ended March 31, 1997. Revenue rose 5.6%, to $127.2 million from $120.5 million. The results are not a direct comparison, however, because Netscape recently shifted from a calendar year to a fiscal year running from Nov. 1 to Oct. 31.

The results, however, did exceed analysts’ expectations.

According to the average estimate reported by First Call Corp., analysts had expected a loss of 10 cents a share.

The Mountain View-based company cited progress in expanding beyond its once-mainstay Internet browser. It is now in a struggle with IBM Corp. and Microsoft Corp. in the corporate software market, and is playing catch-up in its other main business, Web site advertising, where it lags Yahoo Inc.

Netscape shares fell $1 to close at $23.88 on Nasdaq. The company’s results were released after the close of U.S. markets.

Netscape told analysts it expects revenue of $140 million to $145 million in the quarter ending in July.