CMGI Cutting Work Force 4%In an effort to speed its path to profitability, Internet incubator CMGI Inc. said that it will reduce its work force by 95 employees, or 4 percent of its headcount. The reductions are expected to be completed by the end of April.
The elimination of the 95 employees, most of whom work at the company's corporate headquarters in Andover, MA, leaves CMGI with about 100 corporate employees, company spokeswoman Deidre Moore said.
CMGI is the majority owner of ad-serving network Engage Inc., search engine AltaVista, online auction site uBid and e-mail marketer YesMail.com, among others.
In December, CMGI said it substantially decreased its net loss in its fiscal first-quarter 2002 and that it would restate its losses for the three previous quarters because of "inadvertent errors" made in certain calculations.
The company said its net loss for the first quarter was $224.8 million, or 65 cents per share. However, CMGI is increasing its net losses for its second, third and fourth fiscal quarters, covering January to July, by about 2 percent. As a result, its net loss for fiscal 2001 will rise by $110.3 million to $5.49 billion, from its previously stated $5.38 billion. For the fourth quarter, the company's restated net loss will be $1.33 billion, up 9 percent from the previously stated loss of $1.22 billion.
"The company's operating results for the fiscal periods covered by these reports have been restated to reflect the correction of inadvertent errors made in the calculation of certain non-cash items, particularly impairment and amortization charges relating to intangible assets and impairment charges relating to marketable securities," the company said.
CMGI's net revenue in the first quarter of 2002 fell 22 percent to $200.7 million, from $255.5 million in the fourth quarter. The company said its fourth-quarter results were affected by write-downs and pretax losses totaling $467.5 million, which were not present in the first quarter.
The company expects net revenue for the second quarter to be $210 million to $220 million. This would represent its first sequential revenue increase since fourth-quarter 2000. The company expects to end the fiscal year in July with net revenue of $900 million to $950 million.