MOUNTAIN VIEW, Calif. (October 24, 1995) -- Netscape Communications Corporation (NASDAQ: NSCP) today reported revenues totaling $20.8 million for the third quarter ending September 30, 1995, a 75% increase over the previous quarter's revenues of $11.9 million. Net income for the third quarter was $1.4 million, or $0.04 per share, compared with a loss of $1.6 million, or $0.05 per share, in the previous quarter.
"Netscape, in its first quarter as a public company, showed tremendous revenue growth across the product line, in both direct and indirect channels and in international markets," said Jim Barksdale, president and chief executive officer at Netscape. "The strong results reflect the demand around the world for open software products that enable people to communicate and conduct business within the enterprise and across the Internet. We are continuing to invest heavily in research and development and other aspects of our business to stay at the forefront of this fast-growing market."
In the third quarter, Netscape experienced strong demand across its product line, which includes Netscape Navigator client software, Netscape servers and Netscape Internet Applications. Netscape's software line continued to attract Fortune 500 customers who are using Netscape's products as a platform for internal enterprise applications. In addition, Netscape Navigator Personal Edition had a full quarter's worth of shipments into the retail channel during the third quarter. Netscape Publishing System, a high-end turnkey application, also shipped to customers such as Dataquest, Discovery Online and Dow Jones Corporation which are creating online publications.
During the quarter, Netscape also formed relationships with AT&T Corporation, @Home Corporation and Hewlett-Packard Company, which enable them to use Netscape software internally and resell Netscape's products to their customers. The agreements span Netscape's product line, indicating the appeal of Netscape's open client/server software architecture for a variety of applications and markets.
Netscape's international business also grew in the third quarter, with the expansion of Netscape's presence in Japan and Europe. During the quarter, Netscape opened offices in France, Germany, and the UK. In addition, the company introduced Japanese, German and French versions of Netscape Navigator 1.1. International sales for the quarter represented approximately 19 percent of total revenues.
In late September, Netscape announced plans to acquire Collabra Software, Inc., the leading developer of collaborative computing software. The acquisition is aimed at extending Netscape's product offerings into the burgeoning collaboration and messaging market and is expected to close in the fourth quarter.
Netscape Communications Corporation is a premier provider of open software to enable people and companies to exchange information and conduct commerce over the Internet and other global networks. The company was founded in April 1994 by Dr. James H. Clark, founder of Silicon Graphics, Inc., a Fortune 500 computer systems company; and Marc Andreessen, creator of the NCSA Mosaic research prototype for the Internet. 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 , by sending email to info@netscape.com or by calling 415-528-2555.
ASSETS| |
December 31, 1994 September 30, 1995 Current assets:
| |
Cash and cash equivalents |
$ 3,243,510 |
$ 56,950,476 |
Short-term investments |
- |
66,268,597 |
Accounts receivable, net |
701,649 |
17,287,393 |
Other current assets |
67,284 |
2,057,699 |
Total current assets |
4,012,443 |
142,564,165 |
Property and equipment, net |
2,447,098 |
13,387,231 |
Long-term investments, deposits and other assets |
699,100 |
48,465,844 |
|
$ 7,158,641 |
$204,417,240 |
|
| | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | December 31, 1994 |
September 30, 1995 |
|---|---|---|
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,049,911 | $ 16,804,124 |
| Deferred revenues | 2,575,145 | 17,438,930 |
| Current portion of long-term obligations and installment notes payable |
725,000 |
1,292,879 |
| Total current liabilities | 5,350,056 | 35,535,933 |
| Long-term obligations and installment notes payable | 725,000 | 2,090,785 |
| Stockholders' equity: | ||
| Preferred stock, common stock and additional paid-in capital | 9,553,430 | 188,084,847 |
| Notes receivable from stockholders | - | (774,653) |
| Deferred compensation | - | (9,198,077) |
| Accumulated deficit | (8,469,845) | (11,407,168) |
| Accumulated translation adjustment | - | 85,573 |
| Total stockholders' equity | 1,083,585 | 166,790,522 |
| $ 7,158,641 | $204,417,240 | |
|
NETSCAPE COMMUNICATIONS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||
|---|---|---|---|---|
Three Months Ended September 30, |
Inception (April 4, 1994) to September 30, |
Nine Months Ended September 30, |
||
1994 |
1995 |
1994 |
1995 |
|
| Revenues: | ||||
| Product revenues | $ - | $ 19,607,414 | $ - | $ 35,187,672 |
| Service revenues | - | 1,195,390 | - | 2,240,523 |
| Total revenues | - | 20,802,804 | - | 37,428,195 |
| Cost of revenues: | ||||
| Cost of product revenues | - | 2,458,073 | - | 3,680,118 |
| Cost of service revenues | - | 380,370 | - | 894,137 |
| Total cost of revenues | - | 2,838,443 | - | 4,574,255 |
| Gross profit | - | 17,964,361 | - | 32,853,940 |
| Operating expenses: | ||||
| Research and development | 481,657 | 6,150,480 | 653,722 | 12,265,632 |
| Sales and marketing | 391,892 | 9,666,019 | 440,261 | 18,922,085 |
| General and administrative | 714,699 | 2,095,926 | 947,218 | 5,788,931 |
| Property rights agreement and related charges | - | - | - | 500,000 |
| Total operating expenses | 1,588,248 | 17,912,425 | 2,041,201 | 37,476,648 |
| Operating income (loss) | (1,588,248) | 51,936 | (2,041,201) | (4,622,708) |
| Interest income | 1,272 | 1,409,898 | 1,272 | 1,905,481 |
| Interest expense | (304) | (91,441) | (304) | (220,096) |
| Net income (loss) | $ (1,587,280) | $ 1,370,393 | $ (2,040,233) | $ (2,937,323) |
| Net income (loss) per share | $ (0.05) | $ 0.04 | $ (0.06) | $ (0.09) |
| Shares used in computing net income (loss) per share | 33,000,752 | 37,800,750 | 31,884,085 | 34,179,603 |
| PRO-FORMA EARNINGS, ADJUSTED FOR NON-CASH DEFERRED COMPENSATION CHARGES (1) | ||||
|---|---|---|---|---|
Three Months Ended September 30, |
Inception (April 4, 1994) to September 30, |
Nine Months Ended September 30, |
||
1994 |
1995 |
1994 |
1995 |
|
| Operating income (loss) excluding non-cash charges for deferred compensation (1) |
$ (1,588,248) | $ 666,010 | $ (2,041,201) | $ (2,733,732) |
| Net income (loss) excluding non-cash charges for deferred compensation (1) |
$ (1,587,280) | $ 1,984,467 | $ (2,040,233) | $ (1,048,347) |
| Net income (loss) per share, excluding non-cash charges for deferred compensation (1) |
$ (0.05) | $ 0.05 | $ (0.06) | $ (0.03) |
|
(1) This information does not purport to represent financial information prepared in accordance with Generally Accepted Accounting Principles and is presented for illustrative purposes only. (2) Cost of revenues and operating expenses include non-cash charges for deferred stock compensation as follows: |
||||
| Cost of service revenues | $ - | $ 15,212 | $ - | $ 23,177 |
| Research and development | $ - | $ 232,710 | $ - | $ 365,277 |
| Sales and marketing | $ - | $ 225,199 | $ - | $ 347,554 |
| General and administrative | $ - | $ 140,953 | $ - | $ 1,152,968 |
| $ - | $ 614,074 | $ - | $ 1,888,976 | |
Netscape Communications, the Netscape Communications logo, Netscape,
Netscape Commerce Server, Netscape Communications Server, Netscape Proxy
Server and Netscape News Server are trademarks of Netscape Communications
Corporation. NCSA Mosaic is a trademark of the University of Illinois.
All other product names are trademarks of their respective companies.