Naperville, IL--January 22, 1997--Spyglass Inc. (Naperville, IL) reported financial results for the first quarter of fiscal 1997. The company reported revenues of $3.9 million for the three months ended Dec. 31, 1996, as compared to revenues of $4.8 million for the same period last year. The company also reported a net loss of $1.5 million, or $0.12 per share, versus net income of $842,000, or $0.07 per share, for the same period a year ago.
Spyglass also stated that it did not recognize any revenue in the quarter from Microsoft in excess of the minimum quarterly payment due under the license agreement with Microsoft with respect to the licensed Spyglass software used in the Microsoft Internet Explorer product for the Apple Macintosh and Microsoft Windows 3.1. However, Microsoft and Spyglass said that the two companies had reached agreement for a full buyout of all current and future royalties with a one-time payment of $8 million consisting of $7.5 million in cash and $500,000 in software and maintenance to Spyglass, in exchange for the fully paid up license under the terms of the existing license agreement for use by Microsoft of Spyglass Mosaic browser technology in Internet Explorer. Spyglass said it would recognize the revenue from this payment in the second quarter of fiscal year 1997 ending on March 31, 1997.
In a related announcement today, Microsoft and Spyglass said they intended to extend their strategic relationship in the future to develop new technologies, expand distribution of their technologies, and work cooperatively on open standards in the embedded systems market.
1240 E. Diehl Rd.
Naperville, IL 60563
Fax: (630) 245-6693
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