CMGI plunges deeper into the Red Ink Sea

CMGI, the dotcom investor/conglomerate, saw losses top $2.5bn for its second quarter - and it forecasts a sales slowdown for the next few months.

The Massachusetts-based company recorded a net loss of $2.56bn, or $7.86 per share, for the period ended January 31 2001, compared to a loss of $186 million, or 74 cents per share, for the same quarter the previous year.

The second quarter figures included costs of around $100 million related to CMGI's previously announced restructure, aimed at stemming losses at the oufit.

Sales rose 116 per cent to $342.7 million (which was also a sequential revenue drop of six per cent).

For Q3 2001 the company, whose holdings include online search engine AltaVista, said it expected revenue of between $280 million and $290 million, growing at 3-5 per cent in Q4. Restructuring charges are expected to total around $100 million for the second half of the financial year.

CMGI shares have plunged 95 per cent over the last year, but rallied today with a massive leap of six cents to close at $3.91. ®

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