Shares of Lycos, Inc. (Nasdaq: LCOS) were up 6 49/64 in Thursday morning trading to 64 3/8, after the portal company reported better-than-expected results for the first quarter ended April 30th.
Lycos, which has agreed to be acquired by Spain’s Terra Networks SA for stock valued at $12.5 million, posted net income of $122.4 million, or $1.05 per fully diluted share, compared with a loss of $13.2 million, or 15 cents, in the same quarter last year. Operating profit was $7.9 million, or 7 cents a share, better than the 5 cents analysts were expecting.
Lycos shares, which had run up ahead of the Terra announcement, slipped Wednesday amid speculation about the deal’s viability. The acquisition would mark the first entry of a foreign company into the U.S. portal market, and analysts have questions about how well the companies’ cultures will mesh.