The Numbers:
CMG Information Services, Inc. And Subsidiaries
Consolidated Statements of Operations
(In thousands except per share amounts)
(Unaudited)
Three months ended
Oct 31, Jul 31, Oct 31,
1998 1998 1997
Net revenues $ 40,005 $ 28,103 $ 25,135
Operating expenses:
Cost of revenues 37,108 29,176 15,259
Research and
development 5,491 4,928 6,174
In-process research
and development - 200 -
Selling 8,979 7,575 11,040
General and
administrative 8,306 7,125 4,901
Total operating expenses
59,884 49,004 37,374
Operating loss (19,879) (20,901) (12,239)
Other income (deductions):
Gain on sale of data
warehouse product rights - - 8,437
Gain on sale of
Lycos, Inc. common stock 2,018 53,978 6,324
Gain on sale of
available-for-sale securities - - 4,174
Gain (loss) on stock
issuance by Lycos, Inc. 19,182 24,305 (94)
Gain on stock issuance
by GeoCities 24,132 - -
Gain on sale of investment
in Sage Enterprises, Inc. 19,057 - -
Gain on sale of investment
in Reel.com, Inc. 23,158 - -
Minority interest 101 - (28)
Equity in losses
of affiliates (2,589) (3,397) (1,529)
Interest income 559 714 843
Interest expense (1,068) (1,035) (770)
Total 84,550 74,565 17,357
Income before income taxes 64,671 53,664 5,118
Income tax expense 26,118 22,268 2,433
Net income 38,553 31,396 2,685
Net income per share:
Basic 1.67 1.38 0.14
Diluted 1.54 1.27 0.12
Shares used in computing net income per share:
Basic 23,041 22,794 19,358
Diluted 24,966 24,660 20,633
NOTE: CMG Information Services Inc. said its first quarter
period ended October 31.
First quarter fiscal 1999 results included pre-tax gains of
$19.1 million on the sale of the Company's investment in Sage
Enterprises (Planet All), $23.2 million on the sale of the
Company's investment in Reel.com, $19.2 million on issuance of
stock by Lycos Inc. , and $24.1 million on issuance of
stock by GeoCities .
Beginning in the second quarter of fiscal 1998, when the
Company's ownership in Lycos was reduced below 50 percent, CMGi
began accounting for its investment in Lycos under the equity
method, rather than the consolidation method, and as such,
CMGi's consolidated revenues and operating expenses no longer
include Lycos.
On a comparable basis, CMGi's first quarter fiscal 1999
revenues of $40 million represent an increase of 153% over
prior year first quarter results, excluding Lycos revenues of
$9.3 million included in Q1 fiscal 1998 results. Similarly,
excluding Lycos operating expenses of $9.7 million included in
CMGi's prior year first quarter results, first quarter fiscal
1999 operating expenses of $59.9 million, reflect a 22%
increase from the fourth quarter of fiscal 1998 and a 117%
increase from last year's first quarter. |
