CMGI posts $15.2 million Q2 net profit

Internet investing firm CMGI Inc. has reported a net profit for its second fiscal quarter, due primarily to a $133.1 million gain from the retirement of two promissory notes payable to Compaq Computer Corp.

However, the Andover, Mass.-based company lowered its revenue projection for fiscal 2002 to $825 million from between $900 million and $950 million, the company said in a statement.

For the second quarter ended Jan. 31, CMGI reported a $15.2 million net profit, or 20 cents per share, compared with a net loss of $2.53 billion, or $7.79 per share, for the quarter a year ago (see story).

The second-quarter 2002 net income included the extinguishment of two promissory notes totaling $220 million owed to Compaq. CMGI said Compaq exchanged the notes for $175.3 million and its interest in B2E Solutions Inc., which it formed with Compaq, CMGI said.

Revenue for the second fiscal quarter fell to $210.8 million from $334.9 million a year ago but increased from the $200.6 million posted in the first fiscal quarter of 2002.

CMGI reported a pro forma operating loss of $42.4 million for the quarter ended Jan. 31, down 38% from the $68.1 million pro forma operating loss posted in the first fiscal quarter.

The company also said that as of Jan. 31, it had $412.1 million in cash on hand.

CMGI, which owns portal and search engine site AltaVista, interactive marketing firm Engage Inc. and Internet professional services vendor Tallan Inc., could not be reached for further comment at deadline.

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