Engage (Nasdaq: ENGA) fell 16 U.S. cents to 81cents in morning trading Tuesday after the company reported quarterlyresults that were in line with already-lowered expectations.
Engage, a marketing software company majority owned by CMGI (Nasdaq: CMGI),said revenue for the second quarter ended January 31st totaled $28.1million, down 10 percent from a year earlier and 31 percent below the firstquarter.
The loss before amortization, writeoffs, research and other costs narrowedto $41.3 million, or 21 cents per share, from $48.7 million, or 26 cents.The net loss, however, grew to $69.6 million, or $3.53 per share, from$173.8 million, or 92 cents. Latest-quarter results included a $521.8million charge for the revaluation of acquisitions that were financed withEngage stock.
President and chief executive Tony Nuzzo said recent corporate restructuring benefited the company during the second quarter, but it will take “a few more quarters” before financial results are apparent.
Engage is taking steps to deal with the deteriorating market for itsproducts. The company is cutting jobs, terminating leases on someproperties, renegotiating contracts and focusing on higher-margin softwarelicensing.
For the third quarter, the company is aiming for revenue of $24 million to$26 million, with a loss before amortization, writeoffs and other costs of12 to 15 cents per share.
Engage said it aims to reach breakeven on a cash earnings basis by the endof fiscal 2002. With $77 million in cash and short-term investments, alongwith a commitment from CMGI to provide up to $50 million, the company saidit has enough cash to support operations until then.
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