NaviSite tops 1Q forecasts

2 min read

NaviSite (Nasdaq: NAVI) lost a penny less than analysts expected in the first quarter, said it expects to lose more than analysts expected in fiscal 2001, and announced another infusion of funding from majority owner CMGI (Nasdaq: CMGI).

After market close Tuesday, the provider of application and Web hosting services reported a fiscal first quarter net loss of $23.1 million, or 39 cents per share. First Call's survey of 15 analysts predicted a loss of 40 cents per share for the quarter ended Oct. 31.

Shares of NaviSite moved up to 5.375 in afterhours activity on the Island electronic communications network, following the release of quarterly results. NaviSite rose 0.125 to 5.3125 in Tuesday's regular trading session, ahead of the first quarter report.

NaviSite also set financial targets for the second quarter, including:

  • Operating losses ranging between $23 million and $24 million, or 41 to 43 cents on per-share basis. First Call consensus was predicting a second quarter loss of 34 cents per share.

  • Revenue of $29 million to $30 million.

  • Gross margin between negative 12 percent and negative 14 percent.

    For the full fiscal 2001, NaviSite sees an operating loss of $83 million to $93 million and a per-share loss of $1.55, on revenue of $135 million to $140 million. Analyst consensus had been predicting a loss of $1.25 per share.

    Also Tuesday, the company said CMGI agreed to invest an additional $80 million in NaviSite. CMGI's investment should be enough to fund NaviSite until it reaches cash flow positive in its U.S. and recently launched British operations, the company said. About $50 million has already been received.

    First quarter revenue for NaviSite increased 27 percent sequentially and 344 percent year-over-year to $26 million. About 58 percent of NaviSite's revenue came from companies not related to CMGI, compared to 57 percent in the fourth quarter and 42 percent in the year-ago period.

    NaviSite added 23 enterprise customers in the first quarter.>