CMGI Posts Strong Q1 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

CMGI Posts Strong Q1

Internet investment firm CMGI today reported earnings for its fiscal year 2000 first quarter that reflected a strong increase in revenue and a lower-than-expected net loss.

Revenue for the quarter ended Oct. 31, was $123.7 million, up 231% from the year-ago quarter. CMGI saw a net gain of $46.4 million on stock from NaviSite's initial public offering and $48.3 million on the sale of Yahoo common stock.

Including the effects of amortization, CMGI's net loss was $117 million or $1.08 per share, less than the $1.74 expected by analysts. Phil Benyola, research associate with Raymond James & Associates Inc., said he expected the wider loss per share because of CMGI's acquisition of AltaVista Co.

Along with AltaVista, CMGI made several other acquisitions during the first quarter, including Engage and its subsidiaries I/PRO and AdKnowledge; Adsmart; AdForce; and Flycast.

Adding to its arsenal of interactive marketing and advertising properties, the Andover, Mass., firm also announced it will acquire Yesmail.com, an outsourcer for permission E-mail marketing technology and services for $500 million in stock.

The deal, which is expected to close in March, is subject to regulatory approval from Yesmail.com shareholders and will result in the marketing site becoming a majority-owned operating company of CMGI.

Benyola says his firm previously identified a permission-based marketing site as the only component that CMGI was missing. "The Yesmail.com acquisition will enable CMGI to set up permission-based E-mail campaigns and offer direct marketing programs to its customers," he says.

Yesmail.com was founded in 1995 as WebPromote. It has more than 100 employees and 8 million permission-based E-mail subscribers. Through its YesMail Network, it provides direct marketing E-mail campaigns, along with customer acquisition services, and customer relationship management.

The company also announced a 2-for-1 stock split available to shareholders as of Dec. 28.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Commentary
The Growing Security Priority for DevOps and Cloud Migration
Joao-Pierre S. Ruth, Senior Writer,  9/3/2020
Commentary
Dark Side of AI: How to Make Artificial Intelligence Trustworthy
Guest Commentary, Guest Commentary,  9/15/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll