die kriegen echt den arsch nicht hoch! zu wenig cash zum leben, zu viel zum sterben...
CMGI Announces Fourth Quarter and Year End Fiscal 2002 Financial Results
ANDOVER, Mass.--(BUSINESS WIRE)--Oct. 24, 2002--CMGI, Inc. (Nasdaq: CMGI) today reported financial results for the fourth quarter and fiscal year ended July 31, 2002.
The Company's results of operations discussed herein exclude the results of operations of the Company's former majority-owned subsidiary, NaviSite, Inc. ("NaviSite"). On September 11, 2002, the Company sold all of its equity and debt ownership interests in NaviSite to ClearBlue Technologies, Inc. ("ClearBlue"). As a result of the transaction, the historical results of operations of NaviSite have been accounted for as discontinued operations in accordance with generally accepted accounting principles, and are not included in the Company's results of continuing operations discussed herein.
Fourth Quarter
CMGI reported net revenue of $145 million for the fourth fiscal quarter ended July 31, 2002. This compares to net revenue of $177 million for the quarter ended April 30, 2002, a decrease of 18%.
CMGI reported a total operating loss of $189 million for the quarter ended July 31, 2002, compared to a total operating loss of $132 million for the quarter ended April 30, 2002, representing a 43% increase in operating loss quarter over quarter. Included in the fourth quarter operating loss was a non-recurring charge of $20 million relating to the amendment of the Company's stadium naming rights arrangement with the New England Patriots. Also included in the fourth quarter loss were charges related to amortization of intangible assets and stock-based compensation ("amortization charges") and depreciation totaling $72 million, long-lived asset impairment charges of $56 million, and net restructuring charges of $10 million. Third quarter fiscal 2002 total operating loss included charges related to amortization and depreciation totaling $73 million, long lived asset impairment charges of $3 million and a net restructuring charge of $4 million.
Excluding the effects of charges related to in-process research and development, depreciation, amortization, long-lived asset impairment and restructuring, CMGI reported a pro forma operating loss(1) of $50 million or ($0.13) pro forma operating loss(1) per share for the quarter ended July 31, 2002 versus a pro forma operating loss(1) of $51 million or ($0.13) pro forma operating loss(1) per share in the previous quarter ended April 30, 2002. Included in the fourth quarter pro forma loss(1) was a $20 million non-recurring charge related to the amendment of the Company's naming rights and sponsorship arrangement with the New England Patriots, and a benefit of $8 million from the finalization of estimates associated with the closure activities of certain of the Company's subsidiaries. Excluding the charge and benefit, our pro forma operating loss(1) would have been $38 million.
CMGI reported a net loss of $217 million or ($0.55) loss per share for the fourth quarter of fiscal 2002, compared to a net loss of $125 million or ($0.32) loss per share for the quarter ended April 30, 2002.
As of July 31, 2002, CMGI had a consolidated cash and cash equivalents balance of $257 million. Total cash and cash equivalent usage in the fourth quarter was $44 million, versus $79 million for the previous quarter. The fourth quarter cash usage included a net cash outlay of approximately $44 million for the acquisition of the worldwide assets and operations of iLogistix, offset by cash proceeds from the maturities of available-for-sale securities of $16 million. Excluding the impact of the iLogistix acquisition our cash balance would have been $301 million.
George McMillan, President and Chief Executive Officer of CMGI, said: "Building our strategically core businesses, restructuring non core businesses and cash management have been the strategic priorities for CMGI during the quarter and after its close. During the fourth quarter, CMGI strengthened its eBusiness and Fulfillment segment through acquisition, significantly expanding the Company's presence in supply chain management by acquiring iLogistix, a profitable and cash positive business. After the quarter closed, CMGI sold its equity and debt ownership interests in Engage, sold its equity and debt ownership interests in NaviSite, and sold its equity ownership in Equilibrium. We continue to be disciplined in our cash management to ensure that we have the necessary capital to grow our business. The cash acquisition of iLogistix illustrates this point.
"CMGI will continue to invest in e-Commerce and e-Commerce related Services, Technology Services and Supply Chain Management. CMGI continues to focus on product development, customer acquisition, strategic competitive position and profitability," Mr. McMillan concluded.
CMGI's portion of @Ventures investments made during the quarter totaled $747,000, consisting of follow-on investments in Realm Business Solutions, Inc. Investments for the fiscal year ended July 31, 2002, totaled $8.2 million.
Fiscal Year
CMGI reported net revenue of $708 million for the fiscal year ended July 31, 2002. This compares to net revenue of $1.17 billion for the year ended July 31, 2001, a decrease of 39%.
CMGI reported a total operating loss of $591 million for the year ended July 31, 2002, compared to a total operating loss of $5.75 billion for the year ended July 31, 2001, representing a 90% decrease in operating loss from the prior year. Included in the fiscal 2002 operating loss were charges related to amortization of intangible assets and stock based compensation ("amortization charges") and depreciation totaling $298 million, long-lived asset impairment charge of $73 million, and net restructuring charges of $26 million. Fiscal 2001 total operating loss included charges related to amortization and depreciation totaling $1.63 billion, long lived asset impairment charges of $3.36 billion and a net restructuring charge of $209 million.
Excluding the effects of charges related to in-process research and development, depreciation, amortization, long-lived asset impairment and restructuring, CMGI reported a pro forma operating loss(1) of $194 million or ($0.51) pro forma operating loss(1) per share for the year ended July 31, 2002 versus a pro forma operating loss(1) of $550 million or ($1.67) pro forma operating loss(1) per share in the previous year ended July 31, 2001.
CMGI reported a net loss of $552 million for fiscal 2002, compared to a net loss of $5.49 billion for fiscal 2001. CMGI's net loss available to common stockholders for fiscal 2002 was $490 million, or ($1.29) loss per share, compared to a net loss available to common stockholders of $5.50 billion, or $(16.67) loss per share, for fiscal 2001.
Outlook
Consolidated net revenue for the first quarter of fiscal 2003 is expected to be approximately $178 million to $182 million.
Pro forma operating loss(1) for the first quarter of fiscal 2003 is expected to be approximately $37 million to $40 million. This amount includes $5 million in losses related to divested companies.
Consolidated cash and cash equivalents balance exiting the first quarter of fiscal 2003 is expected to be approximately $180 million. In addition, total cash and cash equivalents usage in the first quarter of fiscal 2003 is expected to be approximately $77 million, of which approximately $15 million relates to the cash and cash equivalent balances of Engage and Equilibrium, which were divested subsequent to July 31, 2002. The $77 million also includes payments for lease terminations and payments related to CMGI's Series C payment obligations.
"We have made significant progress this year but there is still more work to be done. Going forward, we will continue to complete key acquisitions and divestitures to ensure we have the right composition of core businesses as defined by our strategic plan. We remain focused on strengthening our competitive position and achieving profitability," said McMillan.
Our prior guidance indicated we expected to reach break even on a consolidated pro forma operating basis in the first half of fiscal year 2003. We currently expect a $10 - $15 million pro forma operating loss(1) in the second quarter of fiscal 2003, and to reach break even on a consolidated pro forma operating basis in the third quarter of fiscal 2003, both dependent on the actual timing of divestitures of certain non core assets and/or the costs related to shutdown of certain subsidiaries for which a buyer cannot be found.
