Internet operating company CMGI saw revenue slide to $255.5 million net loss balloon to $1.27 billion in the fourth quarter as it struggled to cut costs and find the right mix of technology business amid a prolonged industry slump.

"We continue to aggressively restructure the operations of our core holdings and have taken several key steps to improve the prospects of these businesses," said David Wetherell, CMGI's Chairman and CEO.

After markets closed, CMGI's reported a net loss of $1.27 billion, or $3.69 per share, compared with a net loss of $633.7 million, or $2.17 a share, in the same quarter a year ago.

Some of the red ink resulted from writing down of investments including Pacific Century CyberWorks, the value of which fell by $187.5 million.

Revenue for the fourth-quarter fell 31 percent to $255.5 million, compared with $377.2 million in the same period of 2000.

The company also warned that revenues for fiscal 2002 will be about 10 percent lower than 2001 because of divestitures. It maintained however that by slashing operating expenses it would have $325 million in cash at the end of 2002. At the end of the fourth quarter it had $710.7 million in cash and liquid securities.

Wetherell, who has been under pressure from shareholders for the last year as CMGI's stock has fallen, preached patience, saying it would take four to six quarters to restructure.

He cited the paring of the company's core companies from 20 to nine as an example of its progress. Also yesterday, CMGI sold Activate, its Web-casting property, to Loudeye Technologies. Others businesses such as NaviPath were simply closed.

In addition, Wetherell noted that CMGI company Engage has quit the online ad business, a sector that contributed to a 12 percent revenue drop from the third to fourth quarter.

Shares of CMGI edged up 0.01 to 1.19 on Tuesday, before the earnings call. In the last 52 weeks, the issue has traded between 1.05 and 37.375, underperforming the Nasdaq.