CMGI loses $1.3bn

Heavens

CMGI - the Internet parent whose siblings include AltaVista - lost more than $1 billion last quarter as the company reported increased losses and falling revenues despite continued restructuring at the company.

Net loss for Q4 ending July 31 was a massive $1.28 billion compared to a net loss of $963.3 million in Q3.

Net revenues fell 12 per cent to $255.5 million for Q4 from $289.1 million in the previous quarter.

The company warned that Net revenue was expected to slide still further - by around 10 per cent - during the next financial year as a result of restructuring and sell-offs.

However, CMGI reckons its cash burn rate will decline steeply over the next fiscal year from $135 million this quarter to just $10million or $15 million by Q4 2002.

It also predicts it will end next year with around $325 million in cash and cash equivalents.

Said David Wetherell, CMGI's chairman and Chief Exec: "We continue to make measurable improvements in our performance, and our most recent quarter saw a number of significant actions.

"We continue to aggressively restructure the operations of our core holdings and have taken several key steps to improve the prospects of these businesses.

"Our increased focus on realising efficiencies through consolidation and improvement of operating processes should continue to bear fruit in the coming quarters as we move closer to our goal of profitability," he said.

Net revenues at CMGI's "search and portals" operation - that's AltaVista by the way - were down from $37 million in Q3 to $29.6 in Q4. The operating loss was up almost fourfold from $72.8 million in Q3 to $279.2 million.

Earlier this month AltaVista axed 160 jobs. ®

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