Engage Reports $331M Loss for Fourth Quarter, CEO Nuzzo Quits

Share this content:
Engage Inc. reported a net loss for its fiscal fourth quarter of $330.9 million, or $1.68 per share, compared with a net loss of $112.2 million a year ago.

In a conference call yesterday with analysts, president/CEO Tony Nuzzo announced his resignation to "pursue other interests." He did not provide further details.

Nuzzo will be replaced by Christopher Cuddy, who will become interim president/CEO until a permanent replacement is found. Cuddy was most recently a vice president of corporate development at CMGI, Engage's parent.

For its fiscal fourth quarter, which ended July 31, Engage reported revenue of just over $9 million, down from $27 million in the same quarter a year earlier. Operating expenses in the fourth quarter rose to $140.8 million from $23.6 million in 2000. Engage's operating loss in the quarter was $138 million, compared with $522,000 a year ago.

Engage said Nuzzo, who took the reins after a restructuring in November 2000, will stay with the company until the end of the month. The company's board of directors has initiated an executive search.

The Andover, MA-based company noted that it went through $21.6 million during the fourth quarter and ended its fiscal year with $33.3 million in cash. Cuddy said Engage has enough cash to reach profitability, but he would not speculate as to when that might happen.

"Since I have only been here for eight hours, we will not be providing any forward guidance at this time," he said.

Bob Bartlett, Engage's chief financial officer, said he expects the company to post lower software sales in the first quarter of fiscal 2002 because of the recent terrorist attacks on New York and Washington, D.C. He did not provide further details.

Engage announced its exit from the online advertising market Sept. 13 and said it would refocus on its multichannel software products. It ceased serving ads Sept. 23. The company sold its AdKnowledge business to online marketing and technology firm Bluestreak for an undisclosed amount and said it would discontinue the rest of its media operations Sept. 28.


Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences and drive measurable results. PAN services clients out of the firm's four offices: Boston, San Francisco, New York City and Orlando.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above