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CMG posts $16.5 million profit

The company, which owns a stake in Lycos and GeoCities, posts fourth-quarter net income of $31.4 million, or $1.27 per share.

    CMG Information Services, which owns a stake in Lycos and GeoCities, posted fourth-quarter net income of $31.4 million, or $1.27 per share, compared to a net loss of $5 million, or 26 cents per share, for the like quarter a year ago.

    Excluding pre-tax gains from the sale of Lycos stock, the company reported a loss of $14.7 million, or 60 cents per share, according to CMG chief financial officer Andy Hajducky. Wall Street predicted the company would post a loss of 58 cents a share, according to First Call.

    Quarterly revenue rose to $28.1 million from $22.1 million a year ago.

    For the 1998 fiscal year ended July 31 CMG reported net income of $16.5 million, or 74 cents a share, compared with a loss of $22 million, or $1.17 per share, in fiscal year 1997. Annual revenues rose to $91.5 million from $70.6 million last year.

    CMG shares closed down nearly 7 percent today at 54.5625 ahead of the news.

    Curiously, like many Internet stocks including Lycos, the company's stock got a 27 percent bump yesterday when investors reacted to news that portals received increased traffic from the release of President Clinton's grand jury testimony video on the Web.

    CMG shares have traded as high as 91.75 and as low as 8.75 in the past 52 weeks.