Netscape Shares Surge 24% on Positive Earnings Anticipation and New Executive Hire

Analysts' optimism around Netscape's upcoming fiscal third-quarter earnings and the hiring of new Chief Operating Officer Barry Ariko contributed to a 24% surge in the company's shares on Monday. McCaffrey, a BT Alex. Brown Inc. analyst, also suggested that Netscape may have reached an agreement with Citicorp to provide financial services for Netcenter. Additionally, investors believe Ariko's connections at large U.S. companies will rev up sales and partnerships, as the company focuses on software for businesses and beefs up its Web site.

Key Takeaways:

Netscape shares rose 24% on Monday on anticipation of positive earnings and new executive hire.
The company had operating income of $8.8 million, or 10 cents a share, on revenue of $135.2 million in the comparable quarter a year ago.
Analyst Mary McCaffrey suggested that Netscape may have reached an agreement with Citicorp for financial services on Netcenter.
Chief Operating Officer Barry Ariko brings connections at large U.S. companies, a market Netscape aims to build after Microsoft crimped its browser sales.
Ariko was in charge of Oracle's sales for the United States, Canada, and Latin America until July.
Netscape is focusing on software for companies and beefing up its Web site after Microsoft cut into its lead in the market for Web-browsing software.

Statistics:

24% surge in Netscape shares on Monday
$8.8 million in operating income
10 cents a share operating income
$135.2 million in revenue in the comparable quarter a year ago

Sources:

"Netscape Shares Surge 24% on Positive Earnings Anticipation and New Executive Hire" by Bloomberg, July (no date specified)

www.bloomberg.com

"Ariko-Success Story: Awesomely Moving to Oraclerate" by Oracle Corporation (July 1996)