Internet incubator CMGI Inc. said yesterday that it substantially decreased its net loss in its fiscal first quarter 2002 and that it would restate its losses for the three previous quarters due to “inadvertent errors” made in certain calculations.
The company said its net loss for the first quarter was $224.8 million, or 65 cents per share. However, CMGI is increasing its net losses for its second, third and fourth fiscal quarters, covering January to July, by about 2 percent. As a result, CMGI's net loss for fiscal 2001 will increase by $110.3 million to $5.49 billion, from its previously stated $5.38 billion. For the fourth quarter, the company's restated net loss will be $1.33 billion up 9 percent form the previously stated loss of $1.22 billion.
“The company's operating results for the fiscal periods covered by these reports have been restated to reflect the correction of inadvertent errors made in the calculation of certain non-cash items, particularly impairment and amortization charges relating to intangible assets and impairment charges relating to marketable securities,” the company said in a statement.
CMGI's net revenue in the first quarter of 2002 fell 22 percent to $200.7 million, from $255.5 million in the fourth quarter. The company said its fourth quarter results were affected by write-downs and pretax losses totaling $467.5 million, which were not present in the first quarter.
The company also said its operating loss for the first quarter was reduced to $207.1 million, from more than $1 billion in the fourth quarter of fiscal 2001.
At the end of the first quarter, CMGI had $650.8 million in cash and cash equivalents. It spent $59.9 million in the quarter, down from $135.1 million in the fourth quarter.
CMGI expects its net revenue for the second quarter to be $210 million to $220 million. This would represent its first sequential revenue increase since the fourth quarter of 2000. The company expects to end the fiscal year in July with net revenue of between $900 million and $950 million.
The company said it expects to end fiscal 2002 with more than $250 million in cash and cash equivalents. CMGI expects its “burn rate” to decline by between $25 million and $30 million in the fourth quarter of 2002.