Internet incubator CMGI (Nasdaq: CMGI) reported narrower operating and net losses for the first quarter ended October 31st, though revenue slipped from a year earlier.
The Andover, Massachusetts holding company also late Tuesday restated results for fiscal 2001 to correct "inadvertent errors made in the calculation of some non-cash items."
"Despite a difficult economic quarter, our successful efforts to significantly reduce our operating losses and complete the necessary financial restructuring tasks underscore the drive of CMGI to complete our business realignment and set the stage for the company's future growth," said chairman and CEO David Wetherell.
Ups and Downs
The changes increase the net losses for the fourth quarter ended July 31st by 9 percent to US$1.33 billion, and for the fiscal year by 2 percent to $5.49 billion.
However, CMGI also said it expects the current quarter to show its first sequential increase in revenue since the fourth quarter of 2000.
In early trading Wednesday, CMGI shares were down 19 cents, or 8.3 percent, at $2.11. A year ago, the stock traded at $13.
Losses Narrow
Revenue for the latest quarter slipped to $200.68 million from $358.05 million in the same period a year earlier, CMGI said. At the same time, the company's operating loss narrowed to $207.08 million from $896.72 million, while the net loss shrank to $224.8 million from $636.56 million.
The net loss for the latest quarter included $84.7 million of amortization charges, asset impairment charges of $36.6 million, and restructuring charges of $89.8 million. Before those charges, the company lost $68.1 million, or 19 cents per share.
The writedowns cover investments in Pacific Century CyberWorks, venture capital investments and marketable securities.
Housecleaning Over?
"With this difficult period behind us, we look forward to the remaining quarters of this fiscal year to demonstrate the revenue momentum already evident in many of our core businesses," Wetherell said.
Last month, CMGI said it completed the second phase of a two-part restructuring and was on track to reach its long-term goals. The company, which at one time backed a slew of Internet businesses, is now concentrating on bringing just a few to profitability.
High Hopes
For the second quarter, CMGI expects revenue of $210 million to $220 million, with four to six of its eight revenue-generating subsidiaries seeing sequential revenue gains. In the first quarter, two operating subsidiaries reported revenue growth.
Revenue for fiscal 2002 as a whole should total $900 million to $950 million, CMGI said.
CMGI said it expects a pro forma operating loss of $40 million to $45 million for the second quarter, with a loss for the full year of $150 million to $165 million.
The company expects to break even -- on a pro forma operating basis -- in the first half of fiscal 2003.
Auction Action
CMGI said the quarter saw "significant accomplishments" from its remaining
operating businesses, including a rise in users at auction subsidiary uBid
and an agreement between the auctioneer and Microsoft (Nasdaq: MSFT) 
(Nasdaq: MSFT) that makes uBid the
premier provider of content and products to Microsoft's auctions channel,
which is set to launch this month.
The AltaVista search-engine company, another CMGI business, signed an
alliance with Oracle (Nasdaq: ORCL) and launched two new search services during the quarter.
Talkback: 
