Engage Significantly Lowers Loss
Engage noted in a conference call with analysts that its restructuring is beginning to pay off. The company reported a net loss of $695.5 million, or $3.53 per share, for its fiscal second quarter.
The firm also said its revenue in the third quarter fell to $25.5 million, from $58.7 million a year ago and $28.1 million in the second quarter. The decline in Engage's revenue resulted from the sale of its Internet Profiles Corp analytical unit.
Engage announced in March that it would sell I/PRO to technology firm TopicalNet for an undisclosed amount.
Tony Nuzzo, Engage's president/CEO, said the company also is negotiating the terms of a deal with parent CMGI for a promised loan of up to $50 million.
As part of its restructuring, Engage said it reduced its head count since November 2000 by 54 percent. The company now employs 534.
In the third quarter, Engage's media revenue fell to $12.8 million, from $19.8 million in the second quarter. Software and services revenue rose to $12.6 million, from $8.3 million in the second quarter.
The company also revised its fourth-quarter revenue forecast downward. It now expects revenue in the quarter to be $20 million to $22 million, down from previous expectations of $25 million to $28 million.
Engage is still on track to reach cash breakeven by the fourth quarter, which ends Oct. 31, Nuzzo said. The company ended the third quarter with $55 million. Engage reduced its cash burn in the third quarter to $19.6 million, down from $28.9 million in the second quarter, he said.