It's not all doom and gloom in the New Economy.

Lycos is reporting strong results for its fiscal fourth quarter, which ended 31 July.

In a statement, the company said net profit for the quarter was £8 million, excluding one-off events.

For the same period last year, the company posted a net loss of £2 million.

The company said that its planned merger with Terra Networks SA, the Internet subsidiary of Spain's Telefónica SA, should be completed in October.