But Netscape Communications Corp was restrained on Monday in response to antitrust suits filed against Microsoft, suggesting that the damage had been done and would not be easily repaired.

"At Netscape, we may never know how the company would have developed in the absence of (Microsoft's) anti-competitive behavior," Netscape said in a statement.

"The fact that Netscape has re-engineered its business model to accommodate diminishing browser revenue is a tribute to our market leading products and creative, innovative workforce."

That re-engineered business includes increased focus on two non-browser businesses: the Netcentre Web site, which Netscape is trying to transform into a major Internet gateway; and its Enterprise Software business which makes software for company's internal computer networks, or "intranets."

This is a major change for Netscape, which justa few years ago got most of its revenues from its Internet browsers but rapidly lost market share after Microsoft came out with its own browser and began bundling it in Windows software.

Although Mountain View, California-based Netscape still has close to 60 per cent of the browser market, it is no longer a revenue centre for the company. Earlier this year, Netscape started giving away its browser for free in an effort to compete with Microsoft.

The browser issue was central to the law suits brought against Microsoft on Monday by the US justice department and 20 states. The suits seek, among other things, to require Microsoft to include the Netscape browser in its Windows 98 operating software.

In response, Microsoft chief executive Bill Gates said that was like "requiring Coca-Cola to include three cans of Pepsi in every six pack it sold." But most people familiar with the browser business said Microsoft could easily agree to this demand without harming its own business.

"If that was the only thingMicrosoft had to do (to resolve the suits), I think it would be ecstatic," said Paine Webber analyst James Preissler.

"At best it's a moral victory for Netscape but it's not going to help them get revenue of any sort."

The inclusion of the Netscape browser in Windows software might steer more people onto Netscape's Netcenter Web site, but Preissler said Netscape faced a "large uphill battle" in keeping those people interested.

"Netcenter still has the feel of a Netscape promotional vehicle rather than a consumer-oriented Web site like Yahoo," he said. Netscape is in the process of revamping its Web site to offer more services to more consumers.