WALTHAM, Mass., Dec 03, 2007 (BUSINESS WIRE) -- CMGI, Inc.
Financial Summary
-- Net revenue of $274.7, a decrease of 3.1% compared to the first quarter of fiscal 2007
-- Operating income of $9.1 million, an increase of 80.9% compared to operating income in the year ago period
-- Income from continuing operations of $9.2 million, 5.1% lower than income from continuing operations in the same period last year
-- Net income of $8.6 million, 16.6% lower than net income in the same period last year
-- Non-GAAP operating income of $17.1 million, an increase of 66.4% from non-GAAP operating income in the first quarter of the prior year
-- Diluted earnings per share from continuing operations of $0.19, compared to diluted earnings per share from continuing operations of $0.20 for the same period in the prior fiscal year (in each case, adjusted for the recent reverse stock split)
-- Diluted earnings per share including discontinued operations of $0.18, compared to diluted earnings per share including discontinued operations of $0.21 for the same period in the prior fiscal year (in each case, adjusted for the recent reverse stock split)
-- Cash, cash equivalents and marketable securities at October 31, 2007 increased to $261.2 million from $222.2 million at October 31, 2006
First Quarter Consolidated Financial Results
"We reported good financial results in the quarter with revenue and profitability in line with or better than our expectations," said Joseph C. Lawler, Chairman, President and Chief Executive Officer of CMGI. "Revenue was expectedly lower compared with last year due to two specific previously announced client programs that were discontinued, however we are very pleased with the growth we are seeing from other client engagements. Excluding those discontinued programs, revenue grew by approximately 15% compared to the year ago period. Gross margin performance was higher than expected, driven by work mix, continuous improvement initiatives and higher volumes for certain client programs."
"In addition, we continued to make operational progress this quarter," added Lawler. "Our sales and marketing efforts are progressing, our shared services model is having an impact and the implementation of our IT platform is on track. We continued to make planned investments in our business that should enable us to reach our long-term objectives."
CMGI reported net revenue of $274.7 million for the first quarter of fiscal 2007, a 3.1% decrease compared to net revenue of $283.6 million for the same period one year ago. Gross profit for the quarter increased 30.0% to $39.1 million from $30.0 million in the first quarter of fiscal 2007, primarily due to favorable product mix especially within the company's Europe and Asia operations as well as efficiencies from continuous improvement initiatives and higher volumes for certain client programs. Gross margin increased to 14.2% in the first quarter of fiscal 2008, compared to 10.6% in the first quarter of fiscal 2007.
)