Advertisement
YOU ARE HERE: LAT HomeCollectionsLycos Inc

Technology

Lycos Beats Profit Forecasts as Sales Double in Fiscal 3rd Quarter

May 18, 2000|From Bloomberg News

Lycos Inc., an Internet directory that has agreed to be acquired by Terra Networks for $12.5 billion in stock, on Wednesday reported a better-than-expected profit for its fiscal third quarter as sales more than doubled.

For its quarter ended April 30, Lycos posted net income of $122.4 million, or $1.05 a share, including one-time items, contrasted with a loss of $13.2 million, or 15 cents, a year ago. Excluding the special items, earnings were 7 cents a share, 2 cents higher than the average estimate of analysts polled by First Call/Thomson Financial. Sales climbed to $78.6 million from $35.8 million.

Waltham, Mass.-based Lycos had said Tuesday that it will form Terra Lycos Inc. with Terra, Europe's second-largest Internet service provider, to link its services and content with online access.

Lycos is looking to link its content with Terra's access service to compete with America Online Inc. and expand internationally. Lycos Chief Executive Bob Davis said Wednesday that Terra Lycos would buy Web sites and Internet access providers across the globe. Davis, who would be chief executive of the new company, also said that no job cuts are expected.

Lycos shares, which had risen 60% since May 10, fell $15.02 to close at $57.61 in heavy Nasdaq trading. Its earnings were reported after the close of regular trading. Terra's American depositary receipts fell $6.56 to close at $47, also on Nasdaq.

Madrid-based Terra, Europe's second-largest Internet service provider, is 66% owned by Telefonica.

Advertisement
Los Angeles Times Articles
|
|
|