Spyglass Inc, a Naperville, Illinois-based provider of technology to the information appliance market, has announced third-quarter net revenues of $7.2m, up from $5.7m for the three months ended June 30 1998, for a net loss of $648,000 compared with a loss of $1.7m for the same quarter last year. Revenues for the nine months were $20.4m compared with $15.0m for the same period last year, for losses of $2.2m compared with $9.4m for the nine months ended June 30 1998.
The company attributes its improved results to multi-year Solution Center contracts with Microsoft Corp and General Instrument. Taken together, the agreements are worth $40m in revenues over a three-year period. Excluding charges related to the acquisition of Navitel Communications Inc, Spyglass lost 2 cents per share, compared with 11 cents per share this time last year. But top management say the quarter’s gains are no reason for overconfidence. The appliance market is new and shaky, and Spyglass will have to rely upon service contracts for the foreseeable future.
While Spyglass has built a significant professional services backlog with the signing of multi-year strategic contracts, the relative immaturity of the information appliance market continues to present challenges in predicting the specific timing as to when new revenue transactions will be executed, particularly those that include technology licensing, warned executive VP and CEO Gary Vilchick. Our third quarter results are consistent with that expectation, as it includes a higher proportion of services revenue as compared to technology licensing revenue.
