SOFTWARE SALES CRASH AT NCD.

Network Computing Devices Inc says "software revenue died" this year and expects to report a net loss for the quarter which will exceed the $2.2m it lost in its third quarter. It was specifically the third party software revenue stream that dried up, presumably the WinCenter software that is based on Citrix Systems Inc's WinFrame. "The software was not acceptable to customers," NCD said. Following the launch of Windows NT 4.0 which outmodes WinFrame, Citrix is now selling a package called MetaFrame. A year ago third party software sales were $5m, now they are zero. However NCD is rapidly trying to plug the hole with its three versions of the ThinStar software which runs on its thin client terminals for connecting to Microsoft Windows Terminal Server, aka Windows NT 4's Hydra. It will also get the UltraLook remote client manager, Navio browser and Java software from the acquisition of Tektronix's thin client business. But doubling sales of ThinStar and other client software will not make up the shortfall, NCD says. By year-end it expects hardware to be contributing 50% to profits, software 40%. Three quarters of its 100 engineers are developing software. It wants OEM business to make up 15% to 20% of its business going forward. It makes thin clients for IBM Corp and has recently signed a deal with Intel Corp. It reckons the Tektronix business gives it around 50% of the thin client market - between them the two had 53% of the market last year. It's now dubbing them browser terminals. The Tektronix unit will add 40% to its top line next year. NCD's shares are in the dumpster, trading near the 52-week low at around $5.56.