NetZero’s 4th-Quarter Loss Is Less Than Expected

Free Internet access company NetZero Inc. of Westlake Village reported a loss of $26 million in the fourth fiscal quarter, less than Wall Street estimates had predicted, thanks to sharply higher revenue.

NetZero’s loss, when calculated to allow comparison with last-year’s performance, amounted to 25 cents per share before amortization and noncash charges, compared with a loss of $7.4 million or 72 cents per share in the fourth quarter of 1999.

The results beat the 30-cents-per-share loss forecast by analysts surveyed by First Call/Thompson Financial. The net loss after charges was $26.9 million, or 26 cents per share.

Revenue rose to $18.7 million, up from $3.7 million a year earlier. The company also announced that its gross margin was positive, meaning that it generated more revenue from users than it cost to provide service to them.

Results for the full fiscal year were not provided.

NetZero offers free dial-up access to Internet users who are willing to provide information about their Web surfing habits and allow a stream of advertisements to appear in a portion of their screens while online.