NETSCAPE REPORTS REVENUES OF $100 MILLION FOR THIRD QUARTER 1996
MOUNTAIN VIEW, Calif. (October 22, 1996) -- Netscape Communications Corporation (NASDAQ: NSCP) today reported revenues totaling $100.0 million for the third quarter ending September 30, 1996, a 329 percent increase over revenues of $23.3 million for the same period in 1995. Net income for the third quarter of 1996 was $7.7 million, or $0.09 per share, compared with $0.2 million, or $0.00 per share, in the same period a year ago.
Revenues for the nine months ended September 30, 1996, were $231.1 million, as compared to $43.8 million for the same period in 1995. Net income for the nine months ended September 30, 1996, was $12.2 million, or $0.14 per share, as compared to a net loss of $7.1 million, or a net loss of $0.10 per share, for the same period in 1995.
"The third quarter of 1996 was another landmark quarter for Netscape, as Netscape server and client software solutions made significant inroads into the global enterprise market," said Jim Barksdale, president and chief executive officer of Netscape. "Leading companies such as Chrysler, Columbia/HCA Healthcare, JCPenney, Shell and GE Information Services selected the Netscape open software platform for building Intranet applications. In addition, our reseller partners became an even greater force for us in delivering our products to corporate customers worldwide, contributing more than half of our revenue for the quarter."
Netscape saw continued momentum in its server software sales in the third quarter, as adoption of the Netscape SuiteSpot integrated server family and the Netscape FastTrack server product grew strongly among enterprise customers around the world.
A recent report from Zona Research showed that Netscape holds a commanding lead in the Web server software market that is similar to its 80 percent share of the browser market, with 74 percent of the Web site managers surveyed on the Windows NT platform and 84 percent on UNIX running Netscape Web server software.
Netscape also made it easier for corporate customers to deploy Intranets with the introduction of Netscape AppFoundry, a collection of reusable business applications and enterprise development tools downloadable from the Netscape Internet site and available through Netscape's OEM partners. The initial applications include software from Acclaim Technology, Austin-Hayne Corporation, Booz Allen & Hamilton, Informix, KPMG, US Web and many other companies.
Netscape also continued its investment in its product line and core technologies in the third quarter. The company unveiled Netscape ONE, the open network environment, a standards-based platform for creating a new generation of distributed client/server applications. In conjunction with the announcement, more than 50 companies announced their support for Netscape ONE, and 21 companies licensed Netscape ONE technologies to include in their software tools products. Adobe, Autodesk, Borland, Corel, Macromedia and NeXT were among those who announced plans to deliver products based on Netscape ONE technologies to create a new category of developer tools and applications for the Internet and Intranets.
Netscape also announced during the quarter that it had released version 3.0 of its popular Netscape Navigator client software. As part of the release, the company introduced an innovative new service called Netscape Inbox Direct, which allows Netscape Navigator users to subscribe to and receive valuable content automatically and at no cost directly into their email boxes. More than 30 companies have announced that they intend to offer content through the new service, including such leading companies as American Express Travel and Leisure Magazine, Charles Schwab, Gartner Group, IDG Publications, Knight Ridder, Times Mirror Magazines, The New York Times and US News and World Report.
In the third quarter, Netscape also announced the formation of Navio Communications, Inc., an independent Internet software company. Navio intends to deliver core, scalable software based on Netscape Navigator technology for consumer and non-PC products. By pursuing the consumer and non-PC device market through an independent company with equity partners, Netscape is able to continue its strong focus on delivering software for the enterprise.
Netscape Communications Corporation is a premier provider of open software for linking people and information over enterprise networks and the Internet. The company offers a full line of Netscape Navigator clients, servers, development tools and commercial applications to create a complete platform for next-generation, live online applications. Traded on NASDAQ under the symbol "NSCP," Netscape Communications Corporation is based in Mountain View, California.
Additional information on Netscape Communications Corporation is available on the Internet at http://home.netscape.com, by sending email to info@netscape.com, or by calling 415/937-2555 (corporate customers) or 415/937-3777 (individuals).
Netscape Communications, the Netscape Communications logo, Netscape, Netscape Navigator, Netscape SuiteSpot, Netscape AppFoundry, Netscape Inbox Direct and Netscape FastTrack are trademarks of Netscape Communications Corporation. All other product names are trademarks of their respective companies.