CMGI Inc. (NASDAQ: CMGI) is about to go through an investor transformation. The former Internet incubator is now mostly ModusLink and will reflect that change. It also released its quarterly earnings with its net revenue was $276.3 million, up 9.4% over the same period last year. On a non-GAAP basis its operating income was $6.3 million, down from $7.2 million in the same period last year. We don’t really have any great estimates from analysts to use for a comparison right now as it looks like the old figures were not updated. The company is also changing its name and stock ticker effective tomorrow.
It also posted an operating loss of $15.4 million, compared with anoperating loss of $2.4 million last year and its net loss fromcontinuing operations was $18.6 million or -$0.39 EPS, compared to anet loss from continuing operations of $6.2 million or -$0.13 EPS inthe same period last year. Gross margin was 10.4%, down from 12.1% inthe same period during last year.
The renaming of CMGI to ModusLink Global Solutions, Inc. will start atthe open tomorrow, Tuesday, September 30, 2008, and the new stock willtrade on NASDAQ under the symbol "MLNK."
CMGI closed down 14% at $8.89 on light volume and its 52-week trading range "was" $9.36 to $15.45.
Jon C. Ogg
September 29, 2008