Another quarter, another warning. Last Friday, in a filing with the Securities & Exchange Commission (SEC) Netscape warned that what everybody thought would happen is actually happening: Microsoft Corp products are cutting into its market. It also warned that higher research and development costs and sales and marketing costs would hit its further growth rates. In other words, the party’s over and reality has kicked in for the Mountain Viewer. Netscape shares were off $5.0625 to close at $29.25. That’s a 15.4% fall on the day. Netscape’s 52-week low is $23.50, but the stock was split two-for-one in January. A few months back analysts were fretting over Netscape Communications Corp first quarter performance due to a heavy back-end bias to its fourth quarter of 1996 putting first quarter sales in jeopardy. Netscape couldn’t tell us which product areas were affected, but if it’s Netscape’s core Enterprise Software package then it could spell trouble. Meantime, Netscape and Oracle are holding a press conference this morning, and there were rumors flying around that wither company was about to bid for deeply- troubled Informix Software Inc. But Wall Street told us this was not likely. Anyway, it involves the Oracle subsidiary Network Computer Inc, but it’s something’s that warrants the presence of both CEOs, Larry Ellison and Jim Barksdale are involved. The companies were saying nothing when we called them.
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