Shares of CMGI Inc. skidded 12.5% to $1.40 AH Tuesday on news its fiscal fourth-quarter loss more than doubled, and that the company plans to do a one-for-10 reverse stock split. The provider of supply chain management products and services posted a loss of $6.2M ($0.01/share), compared to a loss of $2.5M ($0.01/share) a year earlier, as revenue fell to $252.6M from $261.9M. Earnings excluding certain items were $7.2M down from $7.6M last year, while the operating loss came in at $2.4M compared with operating income of $1.7M the prior year. According to Reuters Estimates, analysts had expected earnings of $0.02/share and revenue of $256.6M. The Company blamed the increased loss on higher restructuring and compensation costs, noting that SG&A expense, including restructuring and amortization of stock compensation, was $33M compared to $26.3M last year. "There is a lot of work required for us to achieve our long term financial goals, " said CEO Joseph Lawler. "Fiscal 2008 is an important transformational year for CMGI." Looking to fiscal 2008, CMGI expects revenue of $1.10B to $1.15B, and operating income that is approximately 2.0% to 2.5% of revenue, before any restructuring costs, which it estimated at $5M-$8M. CMGI also authorized the repurchase of up to $50M of its shares over the next 18 months. The reverse split will take effect November 1.
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