Gst, this is living proof Billys Internet advertising model does work in the new economy.
>BOSTON, Jan 18 (Reuters) - Shares of Engage Inc. (NASDAQ:ENGA), hurt by the slumping Internet advertising market, tumbled almost 30 percent on Thursday after the firm retreated from its goal to post break-even cash earnings by the fourth quarter.
The marketing software company's shares fell 27/32 cents to $2-1/32 in mid-afternoon trading on the Nasdaq. Engage works with Web sites to place ads on their sites. Its fiscal year ends July 31.
After the market closed Wednesday, Engage President Tony Nuzzo told analysts on a conference call that the company had suspended its previous fiscal fourth-quarter guidance to post break-even cash earnings.
He blamed the downturn in the online media market, which has hurt a host of Internet companies, including Engage parent CMGI Inc. (NASDAQ:CMGI) and market leader DoubleClick Inc (NASDAQ:DCLK).
Andover, Mass.-based Engage already is cutting 550 jobs, or half its work force. It also is renegotiating contracts with Web sites to retain a greater share of revenue, Nuzzo said.
Back in December, when it reported a first quarter loss of $173.8 million, or 92 cents a share, the company said it would likely reduce prior 2001 revenue and operating outlook due to continued tough market conditions. |
