CMGi tops 2Q estimates

Second quarter revenue nearly quadrupled from the previous year for CMGi (Nasdaq: CMGI).

After market close Thursday, the Internet incubator reported fiscal second quarter net income of $1.3 million, or a penny per share, excluding special charges. Including one-time R&D charges and amortization costs, CMGi lost $186 million, or 74 cents per share.

First Call's survey of six analysts predicted a loss of $1.28 per share for the quarter ended Jan. 31.

CMGi's complex structure of investments makes the company's quarterly results difficult to predict. Consensus per-share estimates are usually several cents off, compared to the CMGi's actual results.

Shares of CMGi traded at 146 223/256 in afterhours activity on the Island network following the quarterly report. The stock closed Thursday's regular trading at 145 3/8, up 6 7/8 for the session.

Revenue in the second quarter rose to $153.5 million, up 24 percent sequentially and up 294 percent year-over-year. CMGi's Internet business revenue increased to $115.3 million, up 35 percent from the first quarter and up 2,251 percent from a year earlier. Fulfillment services revenue increased 12 percent year-over-year and remained flat sequentially.

The Internet business segment saw a second quarter operating loss of $156.4 million excluding amortization and one-time events, or $414.3 million including those items. Fulfillment services saw operating income of $2.4 million.

Equity in losses of affiliates in which CMGi owns 20 to 50 percent totaled $3.6 million in the second quarter.

The total value of CMGi's publicly-traded stocks was $17.3 billion at Wednesday's closing prices, or $23.1 billion on a pro forma basis, CFO Andrew Hajducky said.

CMGi recorded sales of $159.7 million in Yahoo! (Nasdaq: YHOO) stock and $5.8 million in Open Market (Nasdaq: OMKT) shares, and a pre-tax gain of $5.5 million related the issuance of NaviSite (Nasdaq: NAVI).

At least eight companies in CMGi's portfolio will go public this year, including the @VenturesCEO David Wetherell said during a Thursday afternoon conference call with analysts.

If CMGi's current pace keeps up, the company will be on track for fiscal year revenues of $2 billion to $2.5 billion by the end of calendar 2000, Wetherell said during the conference call.

All 11 analysts polled by Zack's Investment Research rate CMGi with some kind of "buy" rating.>