CMGI loses $2.56 billion, forecasts modest revenue

Internet holding company CMGI last week reported a US$2.56 billion net loss for its fiscal second quarter. The loss was largely attributable to a $2 billion write-off against earnings to reflect the value of some acquisitions. CMGI bought companies such as yesmail.com and AltaVista but has seen their values greatly reduced. Without the write-off, CMGI's operating loss was $216.2 million in the second quarter, 39 percent greater than the $156 million loss of the year-earlier quarter. The company touted revenue growth of $342.7 million, up from $158.6 million a year ago. CMGI is considering selling three of its companies, NaviSite, Activate, and AdForce, to offset its losses. CMGI also reduced its third-quarter revenue estimates.

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