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Netscape 4Q meets Street
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November 24, 1998: 10:15 a.m. ET
Internet browser company posts record revenue after agreeing to AOL acquisition
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NEW YORK (CNNfn) - Netscape Communications Corp., the Internet browser company that agreed Tuesday to be bought out by America Online, posted record revenue for the latest quarter and met Wall Street estimates.
The Mountain View, Calif.-based company reported net income of $2.7 million, or 3 cents a diluted share, for the fourth quarter ended Oct. 31, compared with profits of $10.2 million, or 10 cents a share, for the year-ago quarter.
Operating income fell dramatically to $861,000, from $14.5 million in 1997
At the same time, Netscape's revenue reached a record $162 million for the quarter, up 8 percent over year-ago results.
In a widely anticipated announcement, Web services provider America Online said Tuesday it will buy Netscape for $4.2 billion.
"Results for the fourth quarter demonstrate that Netscape's Netcenter and Enterprise software and services businesses continue to attract customers worldwide who want to participate in the Net economy," said Jim Barksdale, president and chief executive of Netscape. "A number of deals in the quarter reflected the strong synergies between the two sides of our business, with customers such as Qwest Communications, Sasktel and others taking advantage of Netscape's unique Internet expertise in both award-winning Enterprise software and leading Internet portal services."
Barksdale will join America Online's board once its acquisition of Netscape is complete next spring.
"America Online and Netscape share a common vision -- to offer solutions that make it simple for businesses and consumers to participate fully in the Net economy," he said. "The companies' complementary strengths promise to accelerate the adoption of e-commerce and Internet applications worldwide. This exciting partnership enables us to deliver even better and more complete products and services to both existing and new customers."
Shares of Netscape were down ¾ at 41-3/16 after the opening bell Tuesday on the Nasdaq.
(Click here for a chart of Netscape's stock activity) 
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