Revenue for the first nine months was half that of the corresponding period last year.
The acquisition of Netsoft for $26 million cash towards the end of the third quarter was responsible for most of the loss posted by NetManage for the period July-September 1997. NetManage posted $13.5 million revenue in this period, and an overall loss of $26.9 million. The loss does include a one-off $16 million allowance on account of the acquisition, but NetManage's write-offs do not end there. The company reported an additional $5.2 million write -off for what it calls "restructuring".
The company’s revenue does show an increase over the second quarter of the year, but it s difficult to draw any conclusions from that about any developments, as the fourth quarter’s statements include Netsoft’s results as well. The latter had sales turnover of $30 million last year.
On an annual view, it is easier to assess the difficulties NetManage has got into. Its revenue was down to $42.6 million in the first nine months - about half the revenue it posted in the corresponding period last year. The main ray of light for NetManage is to be found in its healthy balance sheet, resting on a cash pile of $75 million, the product of successful capital raising exercises the company carried out in 1993-1994, when its share was traded at record prices. This kitty is likely to provide a safety margin in the next few quarters, and to make possible the purchase of additional technologies.