As expected, Quarterdeck Corp. today announced a loss for the fourth quarter, but at $56 million it was a bit more than had been anticipated.
In September, the Marina del Ray, Calif., company announced that, as a result of lower revenues, several acquisitions and about 400 layoffs, it would take a charge of at least $15 million for the quarter that ended Sept. 30.
Before the announcement, analysts had expected Quarterdeck would break even for the quarter.
The company reported that sales for the quarter, compared with last year, were down 6 percent to $32 million. The loss of $56 million compares with net earnings of $277,000 a year ago.
About $15 million of the loss was acquisition related, $13 million was for restructuring charges and $8.4 million pertained to additional return reserves.
In a release, the company said it plans to develop desktop Internet components using Java and ActiveX that it will integrate through its product line.
"There's nothing magic about running a software company that's profitable," said King Lee, a member of Quarterdeck's board of directors, in an interview last week. "The goal is to get there at some point in the future."
Lee declined to speculate further on when he expects the company to get back into the black.
Officials attributed Quarterdeck's recent troubles to an Internet utilities market that took off much more slowly than most in the industry had anticipated.
"The market wasn't there," said Lee. "We built it and they didn't come. No one showed up."