CompuServe reports loss

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CompuServe reported a loss of $101.9 million for the nine months ended Jan. 31, on revenues of $634 million. That compares with revenues of $578 million for the prior-year period. The company lost $14.2 million in its third quarter, an improvement over the second-quarter loss of $58 million.

"While our third-quarter results show improvement over the second quarter, they are clearly not good enough," said Frank L. Salizzoni, CompuServe's chairman and acting CEO, in a statement. "Our number one priority is to stabilize earnings and return to profitability as quickly as possible." The company's chairman-CEO, Bob Massey, resigned suddenly on Monday.

Mr. Salizzoni outlined three major areas CompuServe will focus on: building its network business, continuing to refocus its CSi service toward business users, and reducing costs and realigning the company's structure.

As of Jan. 31, CompuServe's direct and licensed subscribership was flat at 5.341 million. The company's flagship CSi online service had 2.892 million subscribers at the end of the quarter, down 100,000 from the 2.992 million figure at the second-quarter close.

Copyright February 1997, Crain Communications Inc.

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