Brief: CMGI cuts forecasts for fourth quarter, full year

Citing the continued uncertainty in the Web-based products and services market, Internet investment firm CMGI Inc. said its net revenue for the third quarter of 2002, which ended April 30, will be about $188 million, down from the $210.8 million reported for its second quarter.

CMGI's pro forma operating loss for the third quarter was about $54 million, compared with a pro forma operating loss of $42.4 million for the second quarter, according to a company statement.

In addition, the Andover, Mass.-based company said it wouldn't meet its previously stated fourth-quarter revenue target of $205 million to $215 million and its expected pro forma operating loss of $22 million to $27 million, excluding one-time items. CMGI also said it wouldn't meet its previously stated goal for the full year of $825 million in net revenue and a pro forma operating loss of $165 million to $175 million.

The company said it expects to break even on a pro forma operating basis in the first half of fiscal 2003. It said it will exit fiscal 2002 with $275 million in cash.

CMGI is scheduled to release its third-quarter earnings June 11.

In a separate announcement, CMGI said it will acquire the remaining 24.5% of outstanding shares of marketing and interactive software maker Engage Inc. that it doesn't already own. The company said it will exchange 0.22 CMGI shares for each share of Andover, Mass.-based Engage. CMGI said that based on its closing stock price yesterday, each share of Engage stock would be worth 24 cents. Engage shares closed at 20 cents on the Nasdaq Stock Market yesterday.

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