Internet service to add outlets; a loss is posted

Article Abstract:

America Online (AOL) announces losses of $154.8 million for the 2nd qtr 1997 and plans to lease 50,000 modems from other online companies in order to increase its service capabilities by 60%. As part of the agreement to lease modem time, AOL has agreed not to release the names of the other companies. By securing the use of these modems, AOL is increasing its service capacity two months earlier than the company had previously planned. AOL has posted a lost of $1.64 a share for the quarter ended in Jan 1997. The lost was expected and can be attributed to outdated marketing material, laid off employees and one-time charges for closed offices and operations. Company executives explained AOL is making changes in the way the company obtains revenue. AOL is depending on increased revenue from electronic commerce and advertising to balance the decrease in revenue received, due to the one-time monthly rate the company offers.

America Online Inc., AOL, Company sales and earnings, Company Sales/Revenue, Company Earnings/Profit

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Intel planning big move into Internet services

Article Abstract:

Semiconductor manufacturer Intel Corp. has announced plans to start an Internet services business. The plan is to build and operate a worldwide network of data centers. Analysts forecast that consumers will increasingly access the Internet using systems requiring less powerful microchips, undercutting Intel's history of dominating the industry with the fastest, most powerful processors. Demand for high powered microchips is slackening and Intel's competitors are taking market share in lower end chips. Intel's initiative would involve setting up "server farms" for web site hosting and provision of e-commerce services for business. Analysts disagree on Intel's chances for success, skeptics saying that the company's expertise in semiconductors is not applicable to the services business.

United States, Semiconductors and related devices, Semiconductor Devices, Semiconductor and Related Device Manufacturing, Strategy & planning, Semiconductor industry, Planning, Internet service providers, Intel Corp., INTC, Internet service provider

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Internet commerce pioneer files for Bankruptcy

Article Abstract:

Nets, an online shopping mall and pioneer in the Internet commerce field, has filed for bankruptcy. The company is run by Jim P. Manzi, the former chairman of Lotus Developement. Such business-to-business commerce on the Internet had an estimated market value of $600 million in 1996, and is expected to reach $66 billion by the year 2000. Large companies have been successful, selling their products directly to industrial customers through business-to-business commerce. Analysts believe Nets' mistake was in attempting to take the broad-based industrial mall approach, rather than focusing on a few selected areas. 185 of the company's 200 employees have been laid off. The remaining fifteen are to maintain Nets' Industry.Net site.

Company Bankruptcy, Nets Inc.

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