very comprehensive view of CMGI:
ANDOVER, Mass.--(BUSINESS WIRE)--March 9, 2000--
Summary:
Operating revenues grow 294% over prior year second quarter and
24% over Q1 2000
Company continues to build successful Internet operating model
with completion of nine acquisitions; with an additional four new
acquisitions post-quarter end
Secures partnerships for wireless and broadband delivery of
CMGI-affiliated services
Initiates strategic international operating and venture
partnerships to extend global reach of CMGI network
CMGI, Inc. (NASDAQ:CMGI) today reported net revenues of $153.5
million for the second quarter ended January 31, 2000, a 24%
sequential increase in quarterly revenues and a 294% increase compared
with last year's second quarter. Net revenues for the Company's
Internet business segment increased 2,251% compared with the second
quarter of fiscal 1999, and increased 35% compared with the first
quarter of fiscal 2000. Net revenues for the Company's fulfillment
services segment increased 12% compared with the second quarter of
fiscal 1999, and remained essentially flat compared with the first
quarter of fiscal 2000.
CMGI's net loss was $186 million or ($0.74) basic loss per share
for the quarter, compared to a net loss of $117 million or $(0.54)
basic loss per share for the previous quarter ended October 31, 1999.
Excluding the effects of one-time in process research and development
charges and amortization of intangible assets and stock - based
compensation charges in both periods, CMGI's net income was $1.3
million or $0.01 basic income per share for the quarter, compared to a
net loss of $6.8 million or $(0.05) basic loss per share for the
previous quarter ended October 31, 1999.
Second quarter fiscal 2000 results included the impact of nine
acquisitions, pre-tax gains of $159.7 million on the sale of Yahoo!
common stock and $5.8 million on the sale of Open Market common stock
classified as "other gains, net," and a pre-tax gain of $5.5 million
on issuance of stock by NaviSite, Inc. as a result of the exercise of
the underwriters' over-allotment option in its initial public
offering. First quarter fiscal 2000 results included pre-tax gains of
$46.4 million on issuance of stock by NaviSite, Inc. in its initial
public offering and $48.3 million on the sale of Yahoo! common stock,
classified as "other gains, net." Excluding the effects of one time
in-process research and development and amortization of intangible
assets and stock - based compensation charges, CMGI's second quarter
operating expenses for continuing operations were $307 million,
reflecting a 34% increase from the first quarter of fiscal 2000 and a
424% increase from last year's second quarter.
In the second quarter, CMGI launched its newest majority-owned
operating company, CMGI Solutions, Inc., dedicated to providing
end-to-end e-business solutions for the enterprise. By leveraging the
CMGI network of technology resources and its management expertise,
CMGI Solutions will offer the first turn-key, end-to-end Internet
business solution to Global 2000 companies.
In addition to the launch of CMGI Solutions, CMGI expanded its
operating group through the completion of nine acquisitions:
--Tribal Voice, a leading provider of instant messaging,
interactive communications software and online community solutions.
(The second stage of the acquisition including the completion of the
merger of CMGI's previously acquired communications software company,
Activerse, into Tribal Voice to form a single corporation is expected
to be completed in the third fiscal quarter);
--Equilibrium, a pioneer in the automation of digital content
creation and the developer of award-winning packaged automation
solutions for Internet media development;
--AdForce, a leading online provider of centralized, outsourced
ad management and delivery services;
--Flycast Communications Corporation, a leading provider of
web-based direct response advertising solutions;
--Green Witch, LLC (The Green Witch Internet Radio), a leading
provider of open source Internet radio broadcast solutions. Green
Witch is expected to become part of iCAST in the third fiscal quarter;
--Clara Vista Corporation, an information systems consulting and
integration company specializing in analysis, design and development
of Internet/intranet/extranet business applications;
--1stUp.com, a leader in providing consumer-oriented businesses
with ad-supported Internet access solutions;
--Activate.net, a leading provider of Internet-based corporate
communications, providing advanced broadcasting services, technology
and network infrastructure to deploy audio and video to large on-line
communities; and
--AdKnowledge, a provider of Web marketing management services
focused on the needs of online marketers and agencies (AdKnowledge was
acquired by CMGI's majority-owned subsidiary, Engage Technologies,
during the second quarter).
Additionally, CMGI has announced four new acquisitions currently
pending target company shareholder and regulatory approvals:
--yesmail.com (NASDAQ:YESM), a leading outsourcer of permission
email marketing technologies and services;
--ADTECH, a leading provider for the European market of
third-party, independent ad serving and campaign management solutions
to both online advertisers and Web publishers. (After the closing,
CMGI intends to contribute its investment in ADTECH to its
majority-owned subsidiary, AdForce, Inc.);
--uBid.com (NASDAQ:UBID), a leading business-to-consumer
e-commerce auction site; and
--Tall n, a leading provider of Internet and e-commerce
professional services to Fortune 1000 and dot.com companies. Further
enhancing CMGI's focus on the business-to-business arena, the company
will be integrated into CMGI Solutions following the close of the
acquisition, expected in April.
On January 20, 2000, Engage Technologies, Inc. (NASDAQ:ENGA), a
majority-owned operating company of CMGI, announced a definitive
agreement to acquire Adsmart and Flycast from CMGI. Engage will
acquire Flycast and Adsmart from CMGI through the issuance of
approximately 64 million shares of Engage common stock (as adjusted to
reflect the Engage two-for-one stock split payable April 3, 2000.) The
transaction is expected to be completed in April/May 2000.
CMGI also announced several important strategic relationships and
joint ventures during the quarter, including:
Akamai Technologies Inc. (NASDAQ:AKAM) will collaborate with
CMGI on the development of new technologies to create and deliver
dynamic content and applications. Additionally, CMGI and Akamai
announced an increasing number of cooperative efforts to enhance the
performance of company sites within the CMGI network. CMGI-related
companies currently partnering with Akamai include NaviSite,
AltaVista, 1stUp.com and NaviNet.
Under a strategic alliance with MyWay.com, Bell South will allow
its 750,000 Internet customers to personalize their online experience
through the MyWay service. As part of the alliance, BellSouth
customers will be able to access their personalized portals not only
through traditional dial-up, but also broadband and wireless
connections, including interactive pagers, wireless phones and
personal digital assistants (PDAs). In return for distribution of
MyWay.com's services, BellSouth will participate in advertising and
commerce revenues, as well as receive a minority equity stake in
MyWay.com.
Under the terms of an agreement with divine interVentures, inc.,
a Chicago-based Internet operating company focused on the
business-to-business marketplace, CMGI will take a strategic position
of 4.9% in divine interVentures. The two companies have also formed a
strategic relationship through which they will work to utilize and
promote the products and services of each other's network of
affiliates.
Since the quarter end, CMGI announced its participation in
SoftNet Zone, a major initiative designed to bring mobile computing
and Internet services, both wired and wireless, to business travelers
worldwide. Under the agreement, CMGI and Compaq will provide funding,
expertise and technology to SoftNet Zone, which will operate local
area networks and computing business service centers throughout public
facilities such as major airports, convention centers, and hotels. In
addition, Nokia Corp. (NYSE:NOK) and Cisco Systems Inc. (NASDAQ:CSCO) will provide
technological and equipment support to SoftNet
Zone.
Fulfilling on its goals for international expansion, CMGI
announced several agreements to expand the global reach of its network
in Europe, Asia and Latin America, both during and following the
quarter end. On December 14, 1999 CMGI, Compaq Computer Corporation
(NYSE:CPQ), and Shanghai Information Investment Inc. (SII) of China
announced that the companies have signed a memorandum of understanding
for the formation of a strategic alliance to pursue cooperative
Internet opportunities in China. The strategic alliance is intended to
result in the formation of a joint venture, to be based in Shanghai,
that would build and operate a range of Internet and electronic
commerce services to assist government and private enterprises adapt
their businesses for the Internet. The joint venture will also include
an investment consulting and management unit that would serve to
identify and develop emerging Internet businesses serving the Chinese
market.
On March 1, 2000, CMGI, Hicks, Muse, Tate & Furst Incorporated,
(HMTF), and Pacific century CyberWorks Limited (PCCW) announced the
formation of a new venture capital partnership, @Ventures Global
Partners. Under the terms of the partnership, the parties have each
committed to invest up to US$500 million, for a total of up to US$1.5
billion, to support the development of Internet companies based in
Asia, Europe, and the Americas. In addition, the same three partners
also announced an agreement to form a strategic alliance that
leverages their respective operational, technological and financial
resources and partner networks to advance online and traditional media
convergence on a global scale. The alliance is expected to include the
acquisition of traditional media companies for the purpose of pursuing
a strategy of integrating traditional media assets among the holdings
of HMTF with the online media and infrastructure assets of the CMGI
and PCCW networks.
CMGI @Ventures
During the Company's second fiscal quarter, CMGI announced the
launch of two new venture funds. CMGI will be each fund's sole limited
investor, and in each case will contribute up to $1 billion in
capital. The first, the CMGI @Ventures B2B Fund, will focus
exclusively on business-to-business Internet venture capital
investments. The second new fund, the CMGI @Ventures Technology Fund,
will exclusively focus on investing in and supporting Internet
enabling technologies and infrastructure companies that are
synergistic with the CMGI and CMGI @Ventures network.
During the second quarter, CMGI, through its CMG@Ventures III,
CMGI @Ventures IV, CMGI @Ventures B2B and CMGI @Ventures Technology
funds, made initial or follow-on investments in 19 companies.
Initial Investments:
--Diamondback Vision
--FoodBuy.com
--GXMedia (Gamers.com)
--Half.com
--NextOffice.com
--Oncology.com
--Snapfish.com
--SpotLife (formerly known as the Rubicon Project)
Follow-on Investments:
--BizBuyer.com
--CarParts.com
--eGroups (ONEList)
--Furniture.com
--HotLinks
--Mondera.com
--OneCore.com
--PlanetOutdoors.com
--Productopia.com
--SpeechMachines.com
--Vstore.com
--WebCT
Subsequent to the quarter end, the following investments have
also been made:
Initial Investments:
--GoFish.com
--Industria
Follow-on Investments:
--NameTree
--Vicinity
During the second quarter, MotherNature.com (NASDAQ:MTHR)
commenced its IPO on December 9, 1999. (CMG@Ventures II, LLC currently
holds 1.2 million shares of MotherNature.com common stock.) Also in
the quarter, Vicinity Corporation (NASDAQ:VCNT) filed its initial
registration statement for its initial public offering with the
Securities and Exchange Commission on November 3, 1999 and commenced
its IPO on February 8, 2000. (CMG@Ventures I and II, LLC collectively
hold 5.8 million shares of Vicinity common stock.) On November 4,
1999, Tickets.com, Inc. (NASDAQ:TIXX) commenced its IPO.
(CMG@Ventures II, LLC currently holds approximately 800,000 shares of
Tickets.com common stock.) Also in the quarter, Furniture.com filed
its initial registration statement for its initial public offering
with the Securities and Exchange Commission on January 27, 2000. (CMG
@Ventures III holds approximately 3% of Furniture.com's outstanding
capital stock.) On November 29, 1999 AltaVista announced it had agreed
to acquire Raging Bull in a stock-for-stock exchange of privately held
shares of each company. (At January 31, 2000 CMGI owned approximately
82% of AltaVista and CMG@Ventures III LLC owned approximately 10% of
Raging Bull's outstanding shares on a fully diluted basis.)
Operating Segments
For continuing operations, CMGI reports two operating segments:
Internet and Fulfillment Services.
The Internet segment results reflect the consolidated performance
of majority-owned Internet companies, which during the second quarter
of fiscal year 2000 included 1ClickCharge, 1stUp.com, Activate.net,
Activerse, AdForce, Adsmart, AltaVista, Blaxxun, CMGI Solutions,
Engage Technologies, Equilibrium, Flycast Communications, iCAST,
Magnitude Network, MyWay.com, NaviNet, NaviSite, Signatures Network
and Tribal Voice. The Internet segment reported revenues of
$115,267,000 in the quarter ended January 31, 2000, compared with
$85,102,000 in the previous quarter ended October 31, 1999, an
increase of 35%. These revenue increases primarily reflect increased
revenues as result of the acquisitions of 1stUp.com, Activate.net,
AdForce and Flycast Communications and increased net revenues at Alta
Vista, Adsmart, CMGI Solutions, Engage, MyWay.com, NaviNet and
NaviSite. Included in Internet segment revenues in the previous
quarter was approximately $12 million recorded by Alta Vista's
Shopping.com subsidiary related to the completion of a large order for
the sale of computer equipment purchased by Shopping.com from Compaq
and sold to FreePC, an Alta Vista investee. The operating loss for the
Internet segment was $414,304,000 in the quarter just ended versus a
loss of $277,367,000 for the quarter ended October 31, 1999. Excluding
the effects of in-process research and development and amortization of
intangible assets and stock - based compensation charges, the
operating loss for the Internet segment was $156,445,000 in the
quarter just ended versus a loss of $108,018,000 for the quarter ended
October 31, 1999.
CMGI's portion of the net operating performances of investments
in which its ownership is between 20% and 50% is reflected in equity
in losses of affiliates. During the second quarter of fiscal 2000,
these included Engage Technologies Japan, Inc., FoodBuy.com, GXMedia,
Half.com, ThingWorld.com, and Web CT. Equity in losses of affiliates
was $3,633,000 for the quarter ended January 31, 2000, compared with
$1,796,000 for the quarter ended October 31, 1999. CMGI's investments
in Asimba.com, AuctionWatch.com, BizBuyer.com, Boatscape.com,
buyersedge.com (formerly buyingedge.com), CarParts.com, Craftshop.com,
Diamondback Vision, eCircles.com, eGroups Inc., (formerly ONEList),
EXP.com, Findlaw, FreePC, Furniture.com, HotLinks,
Intelligent/Digital, KnowledgeFirst, KOZ.com, Mondera.com,
MyFamily.com, NextMonet.com, NextOffice.com, NextPlanetOver.com,
Oncology.com, OneCore.com, PlanetOutdoors.com, Pacific Century
CyberWorks, Productopia, Radiate Inc.(formerly AureateMedia), Raging
Bull, SnapFish.com, SpotLife, Virtual Ink, Visto and Vstore.com are
carried at cost at January 31, 2000. As of January 31, 2000, CMGI's
holdings in Akamai Technologies Inc., Amazon.com Inc., Critical Path
Inc., Hollywood Entertainment Corp., Lycos Inc., Mail.com Inc.,
Marketing Services Group, Inc., MotherNature.com, Open Market Inc.,
Silknet Software, Inc., Tickets.com, USWeb Corp., Ventro Corporation
(formerly Chemdex), and Yahoo! Inc. are accounted for as
available-for-sale securities, at market value.
In the Fulfillment Services segment, revenues increased 12% to
$38,202,000 in the second quarter of fiscal 2000 from $34,070,000 in
last year's second quarter, primarily reflecting increased volumes
from Cisco Systems. Compared with the first quarter of fiscal 2000,
fulfillment services segment revenues decreased 1%, reflecting the
impact of the first quarter completion of an approximate $4.3 million
special project order from JuniorNet, a leading Web destination for
children. The fulfillment segment reported operating income of
$2,447,000 in the quarter ended January 31, 2000, compared with
operating income of $2,840,000 in the quarter ended October 31, 1999.
The decrease in operating income primarily reflected the impact of
revenue decreases. Fulfillment services segment results for the
quarter ended January 31, 2000 and the previous quarter ended October
31, 1999 each include approximately $700,000 of goodwill amortization
charges related to acquisitions. Also, during the second quarter,
SalesLink opened its Guadalajara, Mexico facility and began shipping
fulfillment product from the new facility and completed an eCommerce
interface to Cisco's Printed Information Store.
Internet Operating Highlights
1ClickCharge, CMGI's majority-owned payment service for digital
content, announced its first wave of deals with CMGI @Ventures'
affiliate companies, OneCore.com, Intelligent/Digital and
ThingWorld.com in November 1999. All three companies are currently
working with 1ClickCharge to provide integrated products and services
for their customers. In December, 1ClickCharge signed an agreement
with Authentica to create a new solution for post-delivery control of
digital content. 1ClickCharge also announced an agreement with uTOK to
develop a co-branded communications platform designed to allow
customers to read notes and opinions about digital content before
making a purchase.
During the second quarter, 1stUp.com continued to establish
itself as a leading provider of ad-supported Internet access
solutions. 1stUp.com successfully launched more than 50 free, private
label Internet services including Excite@Home and The Rocky Mountain
News, as well as nine regional television stations and a diverse range
of online community sites, including Senior.com, Gay.com and
Latino.com. These successful launches, along with the ongoing growth
of the 1stUp.com-powered AltaVista Free Access service, have enabled
1stUp.com to surpass the 2 million registered subscriber mark in less
than six months. Additionally, 1stUp.com averaged 40 percent
month-to-month network usage growth across the three months comprising
the quarter. 1stUp.com also expanded the network available to its
subscribers by signing agreements with PSINet and AT&T Canada.
1stUp.com's ad-supported access offerings are now available to more
than 90 percent of the U.S. and Canada.
During the second quarter, Activate.net continued to enjoy strong
growth as a provider of broadcast communications over the Internet. In
December, Activate.net provided live, worldwide broadcasts in multiple
languages of the WTO meetings in Seattle. Activate.net began broadcast
of CMGI's investor relations events, including December's annual
stockholder meetings for CMGI and Engage. Activate.net's roster of
radio/TV broadcasters expanded to more than 150 stations, and the
company now provides streaming for nearly all of the stations
supported by Magnitude Network, a fellow CMGI company that recently
announced it will become part of iCAST Music, the music channel of
iCAST. Also during the quarter, Activate.net moved into a 60,000 sq.
ft. broadcast operations facility in Seattle, expanded its sales and
production presence in New York and Toronto, and strengthened via
formal agreement its internetworking with European broadcaster
Unit.net.
On December 17, 1999, AltaVista Company filed with the Securities
and Exchange Commission a registration statement for the initial
public offering of shares of its common stock. Morgan Stanley Dean
Witter is acting as the lead underwriter of the offering. Co-managing
underwriters of this offering include Hambrecht & Quist, Robertson
Stephens, Wit Capital, and Prudential Volpe Technology Group, a unit
of Prudential Securities.
On February 1, 2000, AltaVista completed its acquisition of
Raging Bull, a leading innovative investor and financial community.
AltaVista acquired Raging Bull through a stock-for-stock exchange of
the privately held shares of each company. Raging Bull will become the
flagship AltaVista finance center as well as build community and
message boards across the AltaVista Network.
AltaVista also acquired Transium Corporation in February 2000, a
provider of scalable search services that make content manageable and
searchable to provide faster and more relevant search results.
AltaVista announced the formation of AltaVista Business Solutions
(http://solutions.altavista.com), a new business unit created to
fulfill the information search and retrieval needs facing businesses.
AltaVista Business Solutions licenses search products that leverage
the search engine technology underlying AltaVista's search service
used daily by millions of people in business, research, education and
governments throughout the world.
Other key achievements include the signing of several content and
marketing agreements with leading providers, including FOXSports.com
and Move.com. FOXSports.com will be the exclusive content provider for
the AltaVista Live! Sports Channel. As part of a multi-year agreement,
AltaVista will promote the new sports channel throughout its network
of services, including placement of co-branded FOXSports.com
promotions on the AltaVista Live! Homepage. Move.com, Cendant
Corporation's online home and relocation-related services business and
AltaVista entered into an agreementto create a co-branded real estate
channel. Move.com will be the exclusive content provider for the new
real estate channel carried on the AltaVista Live! personalized portal
service.
AltaVista and Fleet Credit Card Services, the nation's eighth
largest bank card issuer, announced they are joining forces to offer
an AltaVista credit card that allows cardholders to earn points toward
more than one million products at the new AltaVista Shopping.com.
On January 6, 2000, AltaVista announced that membership in its
free Internet access program, then just 5 months old, exceeded 1.5
million registered users who have downloaded the service. AltaVista
Free Access is the first nationwide dial-up Internet service offered
by a leading Internet brand, and is available in the U.S. and Canada.
Expanding its international offerings, AltaVista also launched
www.altavista.co.uk - one of the freshest, most comprehensive Internet
search service in the UK, combining AltaVista services with extensive
British Web content.
CMGI Solutions, CMGI's majority-owned e-business solutions
provider, was launched during the second fiscal quarter. Subsequent to
quarter-end, in a combined cash and stock transaction valued at
approximately $920 million dollars, CMGI announced it had signed a
definitive agreement to acquire Tall n, a leading provider of Internet
and e-commerce professional services to Fortune 1000 and dot.com
companies, for integration into CMGI Solutions.
The acquisition will grow CMGI Solutions' billable resources by
350%, delivering the scale required for CMGI Solutions to meet the
significant and rapidly growing demand for its product and services.
The newly combined entity will consist of nearly 500 experienced
professionals with proven industry knowledge in strategy, design,
integration and deployment of large-scale web-based solutions.
Other key achievements for the quarter include the release of
Mail Spinner 4.0. Additional functionality of this product release
includes the offering of templates, wireless phone support for US and
Asia and support for wireless palm devices. On the business
development front, CMGI Solutions announced five major customer and
partnership agreements and is in the final stages of several others.
Engage Technologies reported strong growth in the second quarter
of fiscal 2000, including total revenues of $12.8 million, a 377%
increase from the second quarter of fiscal 1999, and a 54% increase
over first quarter of fiscal 2000. Net loss for the second quarter was
$27.4 million, or $0.52 per share, compared to a net loss of $10.5
million, or $0.22 per share, in the first quarter of fiscal 2000.
Engage also announced a two-for-one stock split that is payable on
April 3, 2000.
Also during the quarter Engage announced a definitive agreement
to acquire Adsmart Corporation and Flycast Communications Corporation
from CMGI, creating the Next Generation of online marketing solutions.
The acquisition is subject to stockholder approval and is currently
scheduled to close in late April/early May.
During the quarter, Engage added 186 new customers bringing the
total customer base to 556. The number of combined customers of
Engage, Flycast and Adsmart now exceeds 5,200, of which 4,800 are
marketers, agencies or direct marketers. Nearly 3,500 of these
customers were added through the Flycast LocalNet channel. The number
of active global anonymous online behavioral-based profiles in the
Engage Knowledge database increased to 52 million, up from 42 million
at the end of October.
The number of advertisers using AudienceNet increased from six in
the first quarter to 21 in the second quarter. The combined number of
ad impressions for the quarter, including Flycast, Adsmart,
AdKnowledge, AdBureau and AudienceNet on a proforma basis was 26
billion. According to the Media Metrix report for December 1999,
Engage, through Flycast and Adsmart, now leads the online advertising
market with an unduplicated reach of 58%.
CMGI and Engage also completed the acquisition of AdKnowledge in
December 1999, providing Engage with a leading presence among online
marketers and agencies.
iCAST, CMGI's majority-owned online entertainment company,
recently launched its web site and delivered version 1.0 of its
multimedia player, the iCASTER. iCAST accomplished several milestones
during the quarter, including additions to its executive management
team and progress in product development.
In January, CMGI announced that it acquired Green Witch LLC (The
Green Witch Internet Radio) and that it would be integrated with
iCAST. Green Witch Internet Radio provides iCAST a formidable team of
open source developers, a proprietary system for preparing music for
streaming on the Web and an existing Web-only radio service that will
be offered on iCAST.com and expanded significantly.
MyWay.com announced a strategic alliance with BellSouth, the
Southeast's fastest growing Internet provider during the second
quarter. The alliance provides for a minority investment by BellSouth
in MyWay, as well as a long-term relationship which secures MyWay as
the default home page for all of BellSouth's Internet access
customers, including DSL subscribers. This relationship further
accelerates MyWay's movement into the wireless arena by enabling MyWay
to offer its personalized portal services via BellSouth's wireless
(cellular and paging) network.
MyWay is aggressively moving towards the provision of its
wireless product suite as a core offering and compliment to its
existing online services. This week, MyWay announced a relationship
with Arch Communications, a leading provider of wireless paging
services. MyWay will be supplying Arch with the personalized portal
services as a first step in distributing content and ecommerce to
mobile devices.
MyWay also completed the acquisition of Zip2, one of the leading
providers of portal platform services, as well as online business
directories, integrated with maps and directions.
Additionally, in conjunction with Compaq, MyWay announced the
creation of a small business portal that will be integrated with the
Prosignia line of Compaq computers aimed at the small- and
medium-sized business sectors.
Internationally, MyWay launched its first European portal with Le
Figaro, the leading newspaper in Paris and the surrounding areas.
MyWay expects to announce the launch of additional European sites in
the coming quarter.
NaviNet, Inc., CMGI's majority-owned supplier of
high-performance, private label Internet access solutions, greatly
expanded its presence across the U.S. during the second quarter of
fiscal 2000. Facilities serving major metropolitan areas in 28 states
(including Washington D.C.) brought network coverage to more than 80%
of the U.S. major market online population as of January 31, 2000.
NaviNet's competitively- priced access solutions are now available on
a local call basis from over 2,500 cities and towns across the U.S.,
helping over fifty ISP customers serve a sharply growing user base.
NaviNet remains on plan to reach 2 million users by calendar year end
2000. Also on plan are the rollout of a DSL product offering and the
launch of a VISP Systems product offering next quarter.
Consistent with its goal to provide coverage in North America,
NaviNet entered into a CLEC agreement with ATT-Canada (formerly
MetroNet) to install Internet access facilities in several major
metropolitan areas in Canada, including Toronto, Montreal and Ottawa.
Canadian operations are expected to commence later this month.
During the fiscal second quarter 2000, NaviSite, Inc. saw a 23%
increase in the number of customers the company serves, which
contributed greatly to the company's overall sales growth of 56%
quarter to quarter. Also during the fiscal second quarter 2000,
NaviSite opened two new data centers on schedule: a 66,000 square foot
facility in San Jose, and a 153,000 square foot facility in Andover,
MA, increasing the company's data center capacity five-fold. NaviSite
also opened new sales offices in Washington, DC and Austin, TX.
NaviSite recently expanded its streaming media service offerings
through a strategic acquisition of ClickHear and two other key
streaming agreements with Activate.net and iBEAM. Also the company
expanded its product offerings with an enhanced line of services for
Oracle databases. NaviSite entered into a Service Provider agreement
with Sun and announced managed support for Sun's newest server, the
Netra. NaviSite also signed an agreement with Akamai that allows
NaviSite to offer managed services for content distribution. Within
the first two months of entering the agreement, NaviSite signed ten
customers for managed content distribution services. NaviSite also
announced a two-for-one stock split that is payable on April 5, 2000.
About CMGI and CMGI@Ventures
With more than 65 companies, CMGI, Inc. (NASDAQ:CMGI) represents
the largest, most diverse network of Internet businesses in the world,
including both CMGI operating companies and synergistic investments
made through its venture capital affiliate, CMGI @Ventures. CMGI
leverages the technologies, content and market reach of its extended
family of companies to foster rapid growth and industry leadership
across its network and the larger Internet Economy. Compaq, Intel,
Microsoft, Pacific Century CyberWorks and Sumitomo hold minority
positions in CMGI.
CMGI's majority-owned operating companies include Engage
Technologies (NASDAQ:ENGA), NaviSite (NASDAQ:NAVI), 1ClickBrands,
1stUp.com, Activate.net, |
