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Engage gains on 4Q results, outlook

2 min read

Engage Technologies picked up 96 cents, or 12 percent, to $9 Thursday, one day after it topped analysts' fourth-quarter estimates and announced plans to eliminate 175 jobs.

In the quarter, Engage (Nasdaq: ENGA) lost $23.9 million, or 14 cents a share, on sales of $66.7 million.

First Call Corp. consensus expected the online advertising and marketing firm to lose 28 cents a share in the quarter.

"We're proud of Engage's achievements in fiscal 2000," said CEO Paul Schaut in a prepared release. "Through acquisition and innovation, we have built a business model that delivers results for marketers through the unique combination of enterprise marketing applications and our global media network."

Including a variety of charges, Engage posted a net loss $112.3 million, or 64 cents a share, in the quarter.

In the fiscal year, Engage dropped $377.9 million, or $2.61 a share, on sales of $176.8 million compared to a loss of $46.6 million, or 61 cents a share in fiscal 1999.

Separately, Engage said it will consolidate its five business division into two and shed 175 employees, roughly 13 percent of its workforce.

Company officials said the move will help it accelerate its profitability timetable.

Last quarter, Engage beat the Street when it posted a loss of $38.3 million, or 22 cents a share, on sales of $58.7 million.

Its shares peaked at $94.50 in March before falling to a 52-week low of $7.44 in August.

Seven of the nine analysts following the stock rate it either a "buy" or "strong buy."

Analysts expect it to lose $1.07 a share in fiscal 2001.