Internet incubator CMGI Inc. said yesterday its net income for its fiscal second quarter ended January 31 rose to $15.2 million, or 20 cents per share, from a net loss of $2.5 billion, or $7.79 per share in the second quarter of 2001.
The company also said net revenue for the quarter fell to $210.8 million, from $334.9 million a year earlier. Net revenue from CMGI's Enterprise Software and Services division fell to just over $40 million in the second quarter, from $116.3 million a year ago. Its eBusiness and Fulfillment division posted net revenue of $154.2 million, down from $181.8 million in 2001. Managed Application Services revenue fell to just over $13 million, from $31.6 million in the second quarter of 2001. CMGI's Portals division posted net revenue of $3.5 million, down from $5.3 million a year ago.
The company said at January 31 it had cash and cash equivalents of $412.1 million. Its cash burn for the quarter was $238.8 million. It expects to end fiscal 2002 with $275 million in cash and equivalents.
CMGI forecast net revenue for the third quarter of $205 million and $215 million for the fourth quarter. It expects full year 2002 net revenue of more than $825 million. The company also said it expects to reach break even on a pro forma basis in the first half of fiscal 2003.
On March 11, Engage Inc., a wholly owned subsidiary of CMGI, said its net loss for its fiscal second quarter ended January 31 fell to $13.2 million, or 7 cents per share, down significantly from $695.6 million, or 21 cents per share a year earlier.
Engage said revenue for the second quarter fell to just over $6 million, from $8.3 million in the same quarter a year ago. The company's product revenue rose slightly to $2.3 million, from $2.1 million in 2001. Service and support revenue fell to $3.7 million in the second quarter, from $6.2 million a year ago.
The ad serving software company said its AdBureau ad-serving platform recorded an 11 percent increase in volume in the second quarter and a 48 percent increase in the first six months of the fiscal year. Engage reduced its cash burn in the second quarter to $5.7 million, from $11.2 million in the first quarter of 2002. The company ended January with cash and equivalents of $24.3 million.
In late February both CMGI and Engage were the target of a lawsuit alleging a breach of fiduciary duty by CMGI's and Engage's board of directors. The suit seeks to stop Engage from going through with a proposed reverse stock split and issuance of shares to CMGI.
CMGI, which said it considers the lawsuit without merit, approved the proposals relating to Engage's reverse stock split. Engage, which echoed CMGI's sentiments about the lawsuit, postponed its annual meeting – where it is scheduled to vote on the proposal – from March 15 until March 29.
