REPEAT/CMGI Announces Record Second Quarter Revenues of $153.5 Million; Internet Segment Revenues Grow 2,251% over Prior Year Second Quarter and 35% over Preceding Quarter.Business/Technology Editors REPEATING...due to garbled headline ANDOVER, Mass.--(BUSINESS WIRE)--March 9, 2000 Summary: Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. grow 294% over prior year second quarter and 24% over Q1 2000 Company continues to build successful Internet operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. with completion of nine acquisitions; with an additional four new acquisitions post-quarter end Secures partnerships for wireless and broadband delivery of CMGI-affiliated services Initiates strategic international operating and venture partnerships to extend global reach of CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) network CMGI, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CMGI) today reported net revenues of $153.5 million for the second quarter ended January 31, 2000, a 24% sequential increase in quarterly revenues and a 294% increase compared with last year's second quarter. Net revenues for the Company's Internet business segment increased 2,251% compared with the second quarter of fiscal 1999, and increased 35% compared with the first quarter of fiscal 2000. Net revenues for the Company's fulfillment services segment increased 12% compared with the second quarter of fiscal 1999, and remained essentially flat compared with the first quarter of fiscal 2000. CMGI's net loss was $186 million or ($0.74) basic loss per share for the quarter, compared to a net loss of $117 million or $(0.54) basic loss per share for the previous quarter ended October 31, 1999. Excluding the effects of one-time in process research and development charges and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and stock - based compensation charges in both periods, CMGI's net income was $1.3 million or $0.01 basic income per share for the quarter, compared to a net loss of $6.8 million or $(0.05) basic loss per share for the previous quarter ended October 31, 1999. Second quarter fiscal 2000 results included the impact of nine acquisitions, pre-tax gains of $159.7 million on the sale of Yahoo! common stock and $5.8 million on the sale of Open Market common stock classified as "other gains, net," and a pre-tax gain of $5.5 million on issuance of stock by NaviSite, Inc. as a result of the exercise of the underwriters' over-allotment option in its initial public offering. First quarter fiscal 2000 results included pre-tax gains of $46.4 million on issuance of stock by NaviSite, Inc. in its initial public offering and $48.3 million on the sale of Yahoo! common stock, classified as "other gains, net." Excluding the effects of one time in-process research and development and amortization of intangible assets and stock - based compensation charges, CMGI's second quarter operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $307 million, reflecting a 34% increase from the first quarter of fiscal 2000 and a 424% increase from last year's second quarter. In the second quarter, CMGI launched its newest majority-owned operating company operating company A business that engages in transactions with outsiders. , CMGI Solutions, Inc., dedicated to providing end-to-end e-business solutions for the enterprise. By leveraging the CMGI network of technology resources and its management expertise, CMGI Solutions will offer the first turn-key, end-to-end Internet business solution to Global 2000 companies. In addition to the launch of CMGI Solutions, CMGI expanded its operating group through the completion of nine acquisitions: --Tribal Voice, a leading provider of instant messaging Exchanging text messages in real time between two or more people logged into a particular instant messaging (IM) service. Instant messaging is more interactive than e-mail because messages are sent immediately, whereas e-mail messages can be queued up in a mail server for seconds or , interactive communications software (communications, software) communications software - Application programs, operating system components, and probably firmware, forming part of a communication system. These different software components might be classified according to the functions within the Open Systems and online community solutions. (The second stage of the acquisition including the completion of the merger of CMGI's previously acquired communications software company, Activerse, into Tribal Voice
--Equilibrium, a pioneer in the automation of digital content creation The development of newsworthy, educational and entertainment material for distribution over the Internet or other electronic media. See DAMS. and the developer of award-winning packaged automation solutions for Internet media development; --AdForce, a leading online provider of centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. , outsourced ad management and delivery services; --Flycast Communications Corporation, a leading provider of web-based direct response advertising solutions; --Green Witch, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (The Green Witch Internet Radio Listening to audio broadcasts via the Internet. There are more than 4,000 broadcasts available on the Internet that can be streamed and played by a software media player in the computer or in a stand-alone Internet radio with the software built in. ), a leading provider of open source Internet radio broadcast solutions. Green Witch is expected to become part of iCAST in the third fiscal quarter; --Clara Vista Corporation, an information systems consulting and integration company specializing in analysis, design and development of Internet/intranet/extranet business applications; --1stUp.com, a leader in providing consumer-oriented businesses with ad-supported Internet access See how to access the Internet. solutions; --Activate.net, a leading provider of Internet-based corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. , providing advanced broadcasting services, technology and network infrastructure to deploy audio and video to large on-line communities; and --AdKnowledge, a provider of Web marketing management services focused on the needs of online marketers and agencies (AdKnowledge was acquired by CMGI's majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , Engage Technologies, during the second quarter). Additionally, CMGI has announced four new acquisitions currently pending target company shareholder and regulatory approvals: --yesmail.com (Nasdaq: YESM), a leading outsourcer of permission email marketing technologies and services; --ADTECH, a leading provider for the European market of third-party, independent ad serving and campaign management solutions to both online advertisers and Web publishers. (After the closing, CMGI intends to contribute its investment in ADTECH ADTECH Advanced Technology ADTECH Advanced Decoy Technology to its majority-owned subsidiary, AdForce, Inc.); --uBid.com (Nasdaq: UBID UBID Union Bay Improvement District (Vancouver Island, BC, Canada) UBID Uganda Baha'i Institute of Development UBID Universal Biometric Identity ), a leading business-to-consumer e-commerce auction site; and --Tallan, a leading provider of Internet and e-commerce professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to Fortune 1000 and dot.com companies. Further enhancing CMGI's focus on the business-to-business arena, the company will be integrated into CMGI Solutions following the close of the acquisition, expected in April. On January 20, 2000, Engage Technologies, Inc. (Nasdaq: ENGA), a majority-owned operating company of CMGI, announced a definitive agreement to acquire Adsmart and Flycast from CMGI. Engage will acquire Flycast and Adsmart from CMGI through the issuance of approximately 64 million shares of Engage common stock (as adjusted to reflect the Engage two-for-one stock split payable April 3, 2000.) The transaction is expected to be completed in April/May 2000. CMGI also announced several important strategic relationships and joint ventures during the quarter, including: Akamai Technologies Akamai Technologies, Inc. (NASDAQ: AKAM) is a company that provides a distributed computing platform for global Internet content and application delivery, headquartered in Cambridge, Massachusetts. Inc. (Nasdaq: AKAM AKAM Akamai Technologies, Inc. (stock abbreviation) AKAM Automated Key Access Machine ) will collaborate with CMGI on the development of new technologies to create and deliver dynamic content and applications. Additionally, CMGI and Akamai announced an increasing number of cooperative efforts to enhance the performance of company sites within the CMGI network. CMGI-related companies currently partnering with Akamai include NaviSite, AltaVista, 1stUp.com and NaviNet. Under a strategic alliance with MyWay.com, Bell South will allow its 750,000 Internet customers to personalize per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. their online experience through the MyWay service. As part of the alliance, BellSouth customers will be able to access their personalized portals See personal portal. not only through traditional dial-up, but also broadband and wireless connections, including interactive pagers, wireless phones and personal digital assistants (PDAs). In return for distribution of MyWay.com's services, BellSouth will participate in advertising and commerce revenues, as well as receive a minority equity stake in MyWay.com. Under the terms of an agreement with divine interVentures, inc., a Chicago-based Internet operating company focused on the business-to-business marketplace, CMGI will take a strategic position of 4.9% in divine interVentures. The two companies have also formed a strategic relationship through which they will work to utilize and promote the products and services of each other's network of affiliates. Since the quarter end, CMGI announced its participation in SoftNet Zone, a major initiative designed to bring mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings and Internet services, both wired and wireless, to business travelers worldwide. Under the agreement, CMGI and Compaq will provide funding, expertise and technology to SoftNet Zone, which will operate local area networks and computing business service centers throughout public facilities such as major airports, convention centers, and hotels. In addition, Nokia Corp. (NYSE NYSE See: New York Stock Exchange : NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) and Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. Inc. (Nasdaq: CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ) will provide technological and equipment support to SoftNet Zone. Fulfilling on its goals for international expansion, CMGI announced several agreements to expand the global reach of its network in Europe, Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , both during and following the quarter end. On December 14, 1999 CMGI, Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. (NYSE: CPQ CPQ Compaq CPQ Conseil du Patronat du Québec (Canada) CPQ Configure-Price-Quote CPQ Conseil de Presse du Québec (Québec Press Council, Canada) CPQ Companion Parrot Quarterly ), and Shanghai Information Investment Inc. (SII SII Servicio de Impuestos Internos (Chile) SII Seiko Instruments, Inc. SII Strong Interest Inventory SII Standards Institution of Israel SII Securities and Investment Institute (UK) ) of China announced that the companies have signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. for the formation of a strategic alliance to pursue cooperative Internet opportunities in China. The strategic alliance is intended to result in the formation of a joint venture, to be based in Shanghai, that would build and operate a range of Internet and electronic commerce services to assist government and private enterprises adapt their businesses for the Internet. The joint venture will also include an investment consulting and management unit that would serve to identify and develop emerging Internet businesses serving the Chinese market. On March 1, 2000, CMGI, Hicks Hicks , Edward 1780-1849. American painter of primitive works, notably The Peaceable Kingdom, of which nearly 100 versions exist. , Muse, Tate & Furst Incorporated, (HMTF HMTF Host Medical Treatment Facility HMTF Hazardous Materials Transfer Form ), and Pacific century CyberWorks Limited (PCCW PCCW Pacific Century CyberWorks PCCW Palmer College of Chiropractic West (San Jose, California) ) announced the formation of a new venture capital partnership, @Ventures Global Partners. Under the terms of the partnership, the parties have each committed to invest up to US$500 million, for a total of up to US$1.5 billion, to support the development of Internet companies based in Asia, Europe, and the Americas. In addition, the same three partners also announced an agreement to form a strategic alliance that leverages their respective operational, technological and financial resources and partner networks to advance online and traditional media convergence Media convergence is a theory in communications where mass mediums merges together to create a new product offering a variety of the properties of each. Such an example is that of the internet. on a global scale. The alliance is expected to include the acquisition of traditional media companies for the purpose of pursuing a strategy of integrating traditional media assets among the holdings of HMTF with the online media and infrastructure assets of the CMGI and PCCW networks. CMGI @Ventures During the Company's second fiscal quarter, CMGI announced the launch of two new venture funds. CMGI will be each fund's sole limited investor, and in each case will contribute up to $1 billion in capital. The first, the CMGI @Ventures B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business Fund, will focus exclusively on business-to-business Internet venture capital investments. The second new fund, the CMGI @Ventures Technology Fund, will exclusively focus on investing in and supporting Internet enabling technologies and infrastructure companies that are synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. with the CMGI and CMGI @Ventures network. During the second quarter, CMGI, through its CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group @Ventures III, CMGI @Ventures IV, CMGI @Ventures B2B and CMGI @Ventures Technology funds, made initial or follow-on investments in 19 companies. Initial Investments: --Diamondback Vision --FoodBuy.com --GXMedia (Gamers.com) --Half.com --NextOffice.com --Oncology.com --Snapfish.com --SpotLife (formerly known as the Rubicon Project) Follow-on Investments: --BizBuyer.com --CarParts.com --eGroups (ONEList) --Furniture.com --HotLinks --Mondera.com --OneCore.com --PlanetOutdoors.com --Productopia.com --SpeechMachines.com --Vstore.com --WebCT Subsequent to the quarter end, the following investments have also been made: Initial Investments: --GoFish.com --Industria Follow-on Investments: --NameTree --Vicinity During the second quarter, MotherNature.com (Nasdaq: MTHR MTHR Mobile Telecommunications and Health Research (UK) ) commenced its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. on December 9, 1999. (CMG@Ventures II, LLC currently holds 1.2 million shares of MotherNature.com common stock.) Also in the quarter, Vicinity Corporation (Nasdaq: VCNT) filed its initial registration statement for its initial public offering with the Securities and Exchange Commission on November 3, 1999 and commenced its IPO on February 8, 2000. (CMG@Ventures I and II, LLC collectively hold 5.8 million shares of Vicinity common stock.) On November 4, 1999, Tickets.com, Inc. (Nasdaq: TIXX) commenced its IPO. (CMG@Ventures II, LLC currently holds approximately 800,000 shares of Tickets.com common stock.) Also in the quarter, Furniture.com filed (1) (COMmand file) An executable DOS, Windows or OS/2 program that takes up less than 64K. Such programs were common with earlier 16-bit computers that used 64K memory segments. See EXE file. (2) A VMS file containing commands to be executed. its initial registration statement for its initial public offering with the Securities and Exchange Commission on January 27, 2000. (CMG @Ventures III holds approximately 3% of Furniture.com's outstanding capital stock.) On November 29, 1999 AltaVista announced it had agreed to acquire Raging Bull in a stock-for-stock exchange of privately held shares of each company. (At January 31, 2000 CMGI owned approximately 82% of AltaVista and CMG@Ventures III LLC owned approximately 10% of Raging Bull's outstanding shares on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis.) Operating Segments For continuing operations, CMGI reports two operating segments: Internet and Fulfillment Services. The Internet segment results reflect the consolidated performance of majority-owned Internet companies, which during the second quarter of fiscal year 2000 included 1ClickCharge, 1stUp.com, Activate.net, Activerse, AdForce, Adsmart, AltaVista, Blaxxun, CMGI Solutions, Engage Technologies, Equilibrium, Flycast Communications, iCAST, Magnitude Network, MyWay.com, NaviNet, NaviSite, Signatures Network and Tribal Voice. The Internet segment reported revenues of $115,267,000 in the quarter ended January 31, 2000, compared with $85,102,000 in the previous quarter ended October 31, 1999, an increase of 35%. These revenue increases primarily reflect increased revenues as result of the acquisitions of 1stUp.com, Activate.net, AdForce and Flycast Communications and increased net revenues at Alta Vista See AltaVista. (World-Wide Web) Alta Vista - A World-Wide Web site provided by Digital which features a very fast Web and Usenet search engine. As of April 1996 its word index is 33GB in size. , Adsmart, CMGI Solutions, Engage, MyWay.com, NaviNet and NaviSite. Included in Internet segment revenues in the previous quarter was approximately $12 million recorded by Alta Vista's Shopping.com subsidiary related to the completion of a large order for the sale of computer equipment purchased by Shopping.com from Compaq and sold to FreePC, an Alta Vista investee. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the Internet segment was $414,304,000 in the quarter just ended versus a loss of $277,367,000 for the quarter ended October 31, 1999. Excluding the effects of in-process research and development and amortization of intangible assets and stock - based compensation charges, the operating loss for the Internet segment was $156,445,000 in the quarter just ended versus a loss of $108,018,000 for the quarter ended October 31, 1999. CMGI's portion of the net operating performances of investments in which its ownership is between 20% and 50% is reflected in equity in losses of affiliates. During the second quarter of fiscal 2000, these included Engage Technologies Japan, Inc., FoodBuy.com, GXMedia, Half.com, ThingWorld.com, and Web CT. Equity in losses of affiliates was $3,633,000 for the quarter ended January 31, 2000, compared with $1,796,000 for the quarter ended October 31, 1999. CMGI's investments in Asimba.com, AuctionWatch.com, BizBuyer.com, Boatscape.com, buyersedge.com (formerly buyingedge.com), CarParts.com, Craftshop.com, Diamondback Vision, eCircles.com, eGroups Inc., (formerly ONEList), EXP.com, Findlaw, FreePC, Furniture.com, HotLinks, Intelligent/Digital, KnowledgeFirst, KOZ.com, Mondera.com, MyFamily.com, NextMonet.com, NextOffice.com, NextPlanetOver.com, Oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. .com, OneCore.com, PlanetOutdoors.com, Pacific Century CyberWorks, Productopia, Radiate ra·di·ate v. 1. To spread out in all directions from a center. 2. To emit or be emitted as radiation. ra Inc.(formerly AureateMedia), Raging Bull, SnapFish.com, SpotLife, Virtual Ink, Visto and Vstore.com are carried at cost at January 31, 2000. As of January 31, 2000, CMGI's holdings in Akamai Technologies Inc., Amazon.com Inc., Critical Path Inc., Hollywood Entertainment Corp., Lycos Inc., Mail.com Inc., Marketing Services Group, Inc., MotherNature.com, Open Market Inc., Silknet Software, Inc., Tickets.com, USWeb Corp., Ventro Corporation (formerly Chemdex), and Yahoo! Inc. are accounted for as available-for-sale securities, at market value. In the Fulfillment Services segment, revenues increased 12% to $38,202,000 in the second quarter of fiscal 2000 from $34,070,000 in last year's second quarter, primarily reflecting increased volumes from Cisco Systems. Compared with the first quarter of fiscal 2000, fulfillment services segment revenues decreased 1%, reflecting the impact of the first quarter completion of an approximate $4.3 million special project order from JuniorNet, a leading Web destination for children. The fulfillment segment reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $2,447,000 in the quarter ended January 31, 2000, compared with operating income of $2,840,000 in the quarter ended October 31, 1999. The decrease in operating income primarily reflected the impact of revenue decreases. Fulfillment services segment results for the quarter ended January 31, 2000 and the previous quarter ended October 31, 1999 each include approximately $700,000 of goodwill amortization charges related to acquisitions. Also, during the second quarter, SalesLink opened its Guadalajara, Mexico facility and began shipping fulfillment product from the new facility and completed an eCommerce interface to Cisco's Printed Information Store. Internet Operating Highlights 1ClickCharge, CMGI's majority-owned payment service for digital content, announced its first wave of deals with CMGI @Ventures' affiliate companies, OneCore.com, Intelligent/Digital and ThingWorld.com in November 1999. All three companies are currently working with 1ClickCharge to provide integrated products and services for their customers. In December, 1ClickCharge signed an agreement with Authentica to create a new solution for post-delivery control of digital content. 1ClickCharge also announced an agreement with uTOK to develop a co-branded communications platform designed to allow customers to read notes and opinions about digital content before making a purchase. During the second quarter, 1stUp.com continued to establish itself as a leading provider of ad-supported Internet access solutions. 1stUp.com successfully launched more than 50 free, private label Internet services including Excite@Home and The Rocky Mountain News The Rocky Mountain News is a daily morning tabloid-format newspaper published in Denver, Colorado. It is owned by the E. W. Scripps Company. (Despite Scripps still running the paper, it's the only newspaper in the Scripps family not to have the corporate lighthouse logo on , as well as nine regional television stations and a diverse range of online community sites, including Senior.com, Gay.com and Latino.com. These successful launches, along with the ongoing growth of the 1stUp.com-powered AltaVista Free Access service, have enabled 1stUp.com to surpass the 2 million registered subscriber mark in less than six months. Additionally, 1stUp.com averaged 40 percent month-to-month network usage growth across the three months comprising the quarter. 1stUp.com also expanded the network available to its subscribers by signing agreements with PSINet and AT&T Canada. 1stUp.com's ad-supported access offerings are now available to more than 90 percent of the U.S. and Canada. During the second quarter, Activate.net continued to enjoy strong growth as a provider of broadcast communications over the Internet. In December, Activate.net provided live, worldwide broadcasts in multiple languages of the WTO See World Trade Organization. meetings in Seattle. Activate.net began broadcast of CMGI's investor relations Investor relations The process by which the corporation communicates with its investors. events, including December's annual stockholder meetings for CMGI and Engage. Activate.net's roster of radio/TV broadcasters expanded to more than 150 stations, and the company now provides streaming for nearly all of the stations supported by Magnitude Network, a fellow CMGI company that recently announced it will become part of iCAST Music, the music channel of iCAST. Also during the quarter, Activate.net moved into a 60,000 sq. ft. broadcast operations facility in Seattle, expanded its sales and production presence in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto, and strengthened via formal agreement its internetworking with European broadcaster Unit.net. On December 17, 1999, AltaVista Company filed with the Securities and Exchange Commission a registration statement for the initial public offering of shares of its common stock. Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. of the offering. Co-managing underwriters of this offering include Hambrecht & Quist, Robertson Stephens, Wit Capital, and Prudential Volpe Technology Group, a unit of Prudential Securities. On February 1, 2000, AltaVista completed its acquisition of Raging Bull, a leading innovative investor and financial community. AltaVista acquired Raging Bull through a stock-for-stock exchange of the privately held shares of each company. Raging Bull will become the flagship AltaVista finance center as well as build community and message boards across the AltaVista Network. AltaVista also acquired Transium Corporation in February 2000, a provider of scalable search services that make content manageable and searchable to provide faster and more relevant search results. AltaVista announced the formation of AltaVista Business Solutions (http://solutions.altavista.com), a new business unit created to fulfill the information search and retrieval needs facing businesses. AltaVista Business Solutions licenses search products that leverage the search engine technology underlying AltaVista's search service used daily by millions of people in business, research, education and governments throughout the world. Other key achievements include the signing of several content and marketing agreements with leading providers, including FOXSports.com and Move.com. FOXSports.com will be the exclusive content provider for the AltaVista Live! Sports Channel Sports channels are television specialty channels (usually available exclusively through cable and satellite) broadcast sporting events, usually live, and when not broadcasting events, sports news and other related programming. . As part of a multi-year agreement, AltaVista will promote the new sports channel throughout its network of services, including placement of co-branded FOXSports.com promotions on the AltaVista Live! Homepage. Move.com, Cendant Corporation's online home and relocation-related services business and AltaVista entered into an agreementto create a co-branded real estate channel. Move.com will be the exclusive content provider for the new real estate channel carried on the AltaVista Live! personalized portal service. AltaVista and Fleet Credit Card Services The software support for PC Cards. PC Card applications talk to Card Services. See PC Card. , the nation's eighth largest bank card issuer, announced they are joining forces to offer an AltaVista credit card that allows cardholders to earn points toward more than one million products at the new AltaVista Shopping.com. On January 6, 2000, AltaVista announced that membership in its free Internet access program An internet access program is a software program, generally included as part of the operating system, to access the Internet. There are two main ways to access the Net.
CMGI Solutions, CMGI's majority-owned e-business solutions provider, was launched during the second fiscal quarter. Subsequent to quarter-end, in a combined cash and stock transaction valued at approximately $920 million dollars, CMGI announced it had signed a definitive agreement to acquire Tallan, a leading provider of Internet and e-commerce professional services to Fortune 1000 and dot.com companies, for integration into CMGI Solutions. The acquisition will grow CMGI Solutions' billable resources by 350%, delivering the scale required for CMGI Solutions to meet the significant and rapidly growing demand for its product and services. The newly combined entity will consist of nearly 500 experienced professionals with proven industry knowledge in strategy, design, integration and deployment of large-scale web-based solutions. Other key achievements for the quarter include the release of Mail Spinner 4.0. Additional functionality of this product release includes the offering of templates, wireless phone support for US and Asia and support for wireless palm devices. On the business development front, CMGI Solutions announced five major customer and partnership agreements and is in the final stages of several others. Engage Technologies reported strong growth in the second quarter of fiscal 2000, including total revenues of $12.8 million, a 377% increase from the second quarter of fiscal 1999, and a 54% increase over first quarter of fiscal 2000. Net loss for the second quarter was $27.4 million, or $0.52 per share, compared to a net loss of $10.5 million, or $0.22 per share, in the first quarter of fiscal 2000. Engage also announced a two-for-one stock split that is payable on April 3, 2000. Also during the quarter Engage announced a definitive agreement to acquire Adsmart Corporation and Flycast Communications Corporation from CMGI, creating the Next Generation of online marketing solutions. The acquisition is subject to stockholder approval and is currently scheduled to close in late April/early May. During the quarter, Engage added 186 new customers bringing the total customer base to 556. The number of combined customers of Engage, Flycast and Adsmart now exceeds 5,200, of which 4,800 are marketers, agencies or direct marketers. Nearly 3,500 of these customers were added through the Flycast LocalNet channel. The number of active global anonymous online behavioral-based profiles in the Engage Knowledge database increased to 52 million, up from 42 million at the end of October. The number of advertisers using AudienceNet increased from six in the first quarter to 21 in the second quarter. The combined number of ad impressions for the quarter, including Flycast, Adsmart, AdKnowledge, AdBureau and AudienceNet on a proforma basis was 26 billion. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Media Metrix report for December 1999, Engage, through Flycast and Adsmart, now leads the online advertising market with an unduplicated reach of 58%. CMGI and Engage also completed the acquisition of AdKnowledge in December 1999, providing Engage with a leading presence among online marketers and agencies. iCAST, CMGI's majority-owned online entertainment company, recently launched its web site and delivered version 1.0 of its multimedia player, the iCASTER. iCAST accomplished several milestones during the quarter, including additions to its executive management team and progress in product development. In January, CMGI announced that it acquired Green Witch LLC (The Green Witch Internet Radio) and that it would be integrated with iCAST. Green Witch Internet Radio provides iCAST a formidable team of open source developers, a proprietary system for preparing music for streaming on the Web and an existing Web-only radio service that will be offered on iCAST.com and expanded significantly. MyWay.com announced a strategic alliance with BellSouth, the Southeast's fastest growing Internet provider Internet provider - Internet Service Provider during the second quarter. The alliance provides for a minority investment by BellSouth in MyWay, as well as a long-term relationship which secures MyWay as the default home page for all of BellSouth's Internet access customers, including DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary subscribers. This relationship further accelerates MyWay's movement into the wireless arena by enabling MyWay to offer its personalized portal services via BellSouth's wireless (cellular and paging) network. MyWay is aggressively moving towards the provision of its wireless product suite as a core offering and compliment to its existing online services. This week, MyWay announced a relationship with Arch Communications, a leading provider of wireless paging services. MyWay will be supplying Arch with the personalized portal services as a first step in distributing content and ecommerce to mobile devices. MyWay also completed the acquisition of Zip2, one of the leading providers of portal platform services, as well as online business directories, integrated with maps and directions. Additionally, in conjunction with Compaq, MyWay announced the creation of a small business portal that will be integrated with the Prosignia line of Compaq computers aimed at the small- and medium-sized business sectors. Internationally, MyWay launched its first European portal with Le Figaro Le Figaro (English: The Barber) is one of the leading French morning daily newspapers. Its editorial line is conservative and has generally been supportive of the Rally for the Republic political party and its successor, the , the leading newspaper in Paris and the surrounding areas. MyWay expects to announce the launch of additional European sites in the coming quarter. NaviNet, Inc., CMGI's majority-owned supplier of high-performance, private label Internet access solutions, greatly expanded its presence across the U.S. during the second quarter of fiscal 2000. Facilities serving major metropolitan areas in 28 states (including Washington D.C.) brought network coverage to more than 80% of the U.S. major market online population as of January 31, 2000. NaviNet's competitively- priced access solutions are now available on a local call basis from over 2,500 cities and towns across the U.S., helping over fifty ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. customers serve a sharply growing user base. NaviNet remains on plan to reach 2 million users by calendar year end 2000. Also on plan are the rollout of a DSL product offering and the launch of a VISP VISP Virtual Internet Service Provider VISP Vitamin Intervention for Stroke Prevention Trial VISP Video Imagery Standards Profile VISP Visual Information Systems Program Systems product offering next quarter. Consistent with its goal to provide coverage in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , NaviNet entered into a CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) agreement with ATT-Canada (formerly MetroNet) to install Internet access facilities in several major metropolitan areas in Canada, including Toronto, Montreal and Ottawa. Canadian operations are expected to commence later this month. During the fiscal second quarter 2000, NaviSite, Inc. saw a 23% increase in the number of customers the company serves, which contributed greatly to the company's overall sales growth of 56% quarter to quarter. Also during the fiscal second quarter 2000, NaviSite opened two new data centers on schedule: a 66,000 square foot facility in San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , and a 153,000 square foot facility in Andover, MA, increasing the company's data center capacity five-fold. NaviSite also opened new sales offices in Washington, DC and Austin, TX. NaviSite recently expanded its streaming media See streaming audio, streaming video and digital media hub. service offerings through a strategic acquisition of ClickHear and two other key streaming agreements with Activate.net and iBEAM. Also the company expanded its product offerings with an enhanced line of services for Oracle databases. NaviSite entered into a Service Provider agreement with Sun and announced managed support for Sun's newest server, the Netra. NaviSite also signed an agreement with Akamai that allows NaviSite to offer managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality for content distribution. Within the first two months of entering the agreement, NaviSite signed ten customers for managed content distribution services. NaviSite also announced a two-for-one stock split that is payable on April 5, 2000. About CMGI and CMGI@Ventures With more than 65 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet businesses in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI. CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI NAVI Nuclear Arms Verification Instrument NAVI New Analog Video Interface ), 1ClickBrands, 1stUp.com, Activate.net, AdForce, Adsmart, AltaVista, CMGI Solutions, Equilibrium, Flycast, iCAST, MyWay.com, NaviNet, SalesLink and Tribal Voice. CMGI @Ventures has ownership interests in 48 Internet companies, including Lycos, Inc. (Nasdaq: LCOS (Liquid Crystal on Silicon) A technology used to make microdisplays for rear-projection TVs and head-mounted displays (HMDs). Each LCoS chip hosts a grayscale LCD shutter sandwiched between a cover glass and a mirror. ), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), MotherNature.com (Nasdaq: MTHR), Ventro Corporation (Nasdaq: VNTR VNTR Variable Number of Tandem Repeat(s) ) and Vicinity (Nasdaq: VCNT). CMGI's corporate headquarters is at 100 Brickstone Square, Andover, MA 01810, Tel: 978-684-3600. CMGI @Ventures has offices there as well as at 3000 Alpine Road, Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , CA 94028. For additional information and a full listing of the CMGI and CMGI @Ventures companies, see http://www.cmgi.com and http://www.ventures.com. The matters discussed in this release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the "Factors That May Affect Future Results" section included in the Company's Annual Report on Form 10K filed with the SEC on October 29, 1999, and the risks discussed in the Company's other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
CMGI, Inc. And Subsidiaries
Consolidated Statement of Operations
(In thousands except per share amounts)
(Unaudited)
Three months ended Six months ended
Jan. 31, Oct. 31, Jan. 31, Jan. 31, Jan. 31,
2000 1999 1999 2000 1999
Net revenues $153,469 $123,731 $38,972 $277,200 $76,377
Operating expenses:
Cost of revenues 121,749 108,173 37,121 229,922 72,744
Research and
development 31,424 20,188 5,194 51,612 10,502
In-process research
and development 4,717 -- -- 4,717 --
Selling 112,737 72,501 6,918 185,238 15,142
General and
administrative 40,868 27,357 9,310 68,225 16,049
Amortization of
intangibles and
stock-based
compensation 253,831 170,039 1,498 423,870 3,137
Total operating
expenses 565,326 398,258 60,041 963,584 117,574
Operating loss (411,857) (274,527) (21,069) (686,384) (41,197)
Other income (deductions):
Gains on issuance
of stock by
subsidiaries
and affiliates 5,571 46,368 4,261 51,939 48,767
Other gains, net 166,149 48,349 50,598 214,498 94,692
Minority interest 31,576 23,288 103 54,864 204
Equity in losses
of affiliates (3,633) (1,796) (6,189) (5,429) (9,548)
Interest income 10,649 5,871 748 16,520 1,307
Interest expense (7,830) (5,700) (1,165) (13,530) (2,233)
Total 202,482 116,380 48,356 318,862 133,189
Income (loss) from
continuing operations
before income taxes (209,375) (158,147) 27,287 (367,522) 91,992
Income tax
expense (benefit) (23,800) (40,735) 14,138 (64,535) 40,454
Income (loss)
from continuing
operations (185,575) (117,412) 13,149 (302,987) 51,538
Discontinued operations,
net of income taxes:
Loss from operations
of lists and database
services segment -- -- (148) -- (279)
Net income (loss) (185,575) (117,412) 13,001 (302,987) 51,259
Preferred stock
accretion and
amortization
of discount (2,228) (4,935) -- (7,163) --
Net income (loss)
available to
common
stockholders $(187,803)$(122,347) $13,001 $(310,150) $51,259
Basic income
(loss) per share
available to
common
stockholders $(0.74) $(0.54) $0.07 $(1.31) $0.28
Diluted income
(loss) per share
available to
common
stockholders $(0.74) $(0.54) $0.06 $(1.31) $0.25
Shares used in
computing
earnings (loss)
per share:
Basic 252,515 226,372 185,040 237,519 184,640
Diluted 252,515 226,372 205,028 237,519 202,600
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