He is the news release
Friday May 7, 12:07 pm Eastern Time
CMGI restates earnings for last four qtrs
ANDOVER, Mass., May 7 (Reuters) - CMGI Inc. said Friday it was restating its earnings
for the last four fiscal quarters because of a review of research charges.
The company, which develops and runs Internet and direct-marketing companies, said
the restatement stemmed from a review of acquisition-related charges, including the
impact of adjustments made to in-process research and development charges by Lycos
Inc. (LCOS - news). CMGI is a major stockholder in Lycos.
The restatement also comprises the in-process research and development charge recorded in the third quarter of fiscal
year 1998 in conjunction with CMGI's acquisition of Accipiter Inc.
The Lycos- and Accipiter-related restatement in the third quarter of fiscal 1998, ended April 30, 1998, resulted in net
earnings of $7.9 million, or $0.17 per diluted share. Originally, CMGI reported a loss of $11.7 million, or $0.27 per diluted
share, for the period.
For the fourth quarter of fiscal 1998, ended July 31, 1998, net income was restated downward to $27.1 million, or $0.55
per diluted share, from $31.4 million, or $0.64 per share.
For the first quarter of fiscal 1999, ended Oct. 31, 1998, net income was restated downward to $38.3 million, or $0.77 per
diluted share, from $38.6 million, or $0.77 per share.
For the second quarter of fiscal 1999, ended Jan. 31, net income was restated downward to $13 million, or $0.25 per
diluted share, from $14.1 million, or $0.28 per share.
''In connection with SEC guidelines, the company's annual report on Form 10K for the year ended July 31, 1998, and the
quarterly reports on Form 10-Q for the third quarter of fiscal year 1998 and first and second quarters of fiscal year 1999
will be amended and restated to reflect these changes,'' the statement said.
Analysts said the restatements had little effect on the long-term outlook for CMGI, which has investments in dozens of
Internet-related companies.
''It means nothing, absolutely nothing,'' said Ken Winston, an analyst with Needham and Co. in Boston. ''It had to do
with Lycos' restatements for R&D, and CMGI had to do the same thing. It has no relevance on the value of (CMGI) or
the forward financials of the company.''
Shares of CMGI had been up as much as $12 before the restatement news, above $239. They fell sharply following the
announcement, touching a low of $216, but quickly recovered.
The shares were up $3.75 to $230.875 in late-morning trade. |
