NaviSite Warns, Stock Tumbles
NaviSite
At midday, the stock was down 1.25, or 24 percent, to 4.062. NaviSite's parent, CMGI
In the first quarter, NaviSite lost $23.1 million, or 39 cents a share. Analysts polled by First Call expected a loss of 40 cents per share. In the same period a year ago, NaviSite lost $19.5 million, or 34 cents a share.
Revenue for the first quarter of 2001 climbed 27 percent from the previous quarter, to $26 million.
But investors reacted negatively to NaviSite's early warning on second quarter results. The company expects to report a loss of 41 to 42 cents per share on revenue of $29 to $30 million. For the full year, losses should be between $1.50 and $1.55 per share on revenue of $135 to $140 million.
NaviSite also announced that it has received a previously announced $80 million capital injection from CMGI and opened a London office. The London operation is expected to generate between $2 million to $3 million in fiscal 2002 and $18 to $20 million in 2002.
The bad news is the latest in a string for CMGI, once one of the highest-flying Internet companies. Yesterday, Engage narrowly beat Wall Street's first-quarter estimates but warned that second-quarter figures would fall short, sending shares of the Web and application hosting company tumbling.
was off 0.625, or 5 percent, to 11.25. Both are based in Andover, Mass.
, the CMGI-owned online advertising firm, released weak quarterly financial results, and its new CEO warned that it would have to
"create a simpler, more efficient company" to survive the downturn in ad revenues.