Engage Lowers Q4 Revenue Forecast
The company's fourth quarter ended July 31. It expects to report results in mid-September.
The company said yesterday it expects fourth-quarter revenue to be $15 million to $16 million, down from its previously revised forecast of $20 million to $22 million. Engage said the lower revenue is largely a result of weakness in its media business, which posted third-quarter revenue of $12.8 million, down from $19.8 million in the second quarter. It did not forecast its fourth-quarter media revenue.
Engage now expects to post a pro-forma net loss per share for the fourth quarter of 9 cents to 12 cents, up from its previous estimate of 8 cents to 11 cents per share.
"Given the current economic climate, Engage no longer expects to achieve cash operating breakeven exiting fiscal first quarter ending Oct. 31, 2001," said Tony Nuzzo, Engage's president/CEO.
To make matters worse, Engage said CMGI Inc. has not extended its $50 million conditional financing commitment to the company beyond July 31. However, CMGI did say it was willing to discuss continued financing. Engage is a majority-owned operating company of CMGI.
Engage said it expects to end the fourth quarter with $31 million in cash and equivalents, down from $55 million in the third quarter.
The company also upgraded its AdManager advertising management software for Web publishers to version 5.5. The new version includes increased ad targeting and performance measurement capabilities.
Engage said AdManager 5.5 is the first site-side, enterprise-level software to offer XML functionality, which allows publishers to integrate the software easily with their management databases.
AdManager 5.5 will be available in October. Pricing depends on the number of ads served by a site.