CMGI, Inc. (Nasdaq: CMGI) fell 11/16 to 20 13/16 Friday after the company, which has stakes in and provides services to a number of e-commerce firms, issued a statement aimed at calming concerns about its financial health.
The Andover, Massachusetts-based company said its liquidity position is strong, with $654.2 million in cash and $1.6 billion of available securities on hand as of July 31st.
CMGI said its cash burn rate of $63 million per month will “decline significantly” over the next six months as it cuts costs and streamlines operations. “We currently have enough cash and cash equivalents to support our ongoing operations and investment requirements for approximately two years,” said chairman and chief executive officer David Wetherell.
CMGI also repeated that it is not including shares of its Engage or NaviSite subsidiaries in available-for-sale securities.