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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: James Thompson who wrote (12104)	7/24/1999 11:25:00 AM
From: Jenne	Respond to of 19700

Technology News Sat, 24 Jul 1999, 11:21am EDT CMGI's NaviSite Web Site Hosting Company Files for Intial Public Offering By Ron Day CMGI's NaviSite Files for Initial Public Offering (Update1) (Adds details from SEC filing) Andover, Massachusetts, July 23 (Bloomberg) -- NaviSite Inc., a Web hosting company majority owned by Internet investor CMGI Inc., will seek to raise as much as $70 million through an initial public offering. NaviSite hosts other companies' Web sites and helps companies develop Internet strategies. Last month, Dell Computer Corp. bought a 4.9 percents stake in the company and Microsoft Corp. bought a 4.4 stake. The market for hosting services provided by companies such as NaviSite is expected to boom, according to Forrester Research, Inc. The market research firm estimates that the U.S. market for managed Web site hosting will grow from less than $1 billion last year to more than $14 billion in 2003. The company will use the proceeds from the IPO to enhance and expand its network infrastructure and to bolster sales and marketing efforts. The company may also devote some of the money to working capital, general corporate purposes, and acquisitions. CMGI, which currently owns about 90 percent of NaviSite's common shares, also accounts for the bulk of its revenues. For the nine months ended April 30, 1999, NaviSite sold services to CMGI and 19 CMGI affiliates totaling about $4.8 million, or 70 percent of revenue. Revenues totaled $2.9 million for the quarter ended April 30, 1999, more than double the $1.05 million generated during the year earlier period. The company's net loss totaled $6.8 million for the April, 1999, quarter, compared to a $2.8 million loss one year earlier. Joel Rosen, NaviSite's chief executive since April, 1999, formerly worked as executive vice president of Aspen Technology, Inc., a publicly traded enterprise software and services provider. He also worked as a consultant and manager at Bain & Co. CMGI, of Andover, Massachusetts, has invested millions to bring nascent Internet companies public. Two of its better-known investments are No. 3 Internet search Lycos Inc. and GeoCities, an Internet site that offers free Web pages. Engage Technologies Inc., in which CMGI has an 82 percent stake, more than doubled in its first day of trading. CMGI shares rose 2 1/8 to 98 3/4 in late morning trading.