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