Growing up, slowing down: Netscape. (Netscape Communications announces a quarterly loss of as much as $89 million)(Brief Article)

Economist (US), The, January, 1998

FEW companies, if any, have grown more rapidly than Netscape, the firm that brought the Internet to the mass market when it launched its Navigator browser little more than three years ago. At the company's base in Silicon Valley, the frenzy of recent construction is evident from the rows of shiny new low-rise buildings, haphazard sign-posting and unfinished landscaping. However, with Microsoft as a relentless competitor, Netscape has now seen that growth col- lapse.

This week Netscape issued a warning that its fourth-quarter results, to be reported on January 27th, will show a loss of up to $89m, including $35m to pay for lay-offs and office closures. Investors reacted by pushing the com- pany's already fragile share price down by 21% (see chart). Although it was...

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