Spyglass Inc, which warned of bad third quarter a few weeks ago (CI No 3,189), made good on its promise and then some by reporting a net loss of $5.5m on revenue that plummeted 63% to $2.2m. The internet software developer’s loss amounts to $0.45 per share, in part due to the deferment of an income tax benefit of $1.9m due to cautious accounting tactics. If the benefit had been included, the loss for the quarter would have been $0.30 per share, still a few cents above the warning last month and well above First Call’s revised estimate of a $0.22 loss. As previously stated, the company blames the poor results on the still-nascent market for non-PC internet-enabled devices, for which its cut-down browsers and applications are designed. Spyglass is hanging its hopes on the market for such devices – network computers, phones, TV set-top boxes and copiers – becoming big over the next four years. On Monday, the company announced the formation of Spyglass Professional Services, a unit that will focus on internet consulting services to businesses. It hopes to carve out a chunk of the estimated $54bn (by 2000) market for internet/intranet professional services.