Engage Sees Second-Quarter Revenue Beating Previous Guidance

Engage(ENGA Quote - Cramer on ENGA - Stock Picks) said this afternoon that, based on preliminary results, the company expects to exceed its second-quarter revenue guidance of $25 million.

In January, Engage, a majority-owned operating company of CMGI (CMGI Quote - Cramer on CMGI - Stock Picks), said it expected second-quarter revenue of $25 million and a loss, excluding noncash expenses and one-time charges, of $55 million, or 28 cents a share. Today, the company reaffirmed the bottom line guidance, saying it doesn't believe the loss will be wider than 28 cents a share.

Analysts polled by First Call/Thomson Financial expect the company, which is based in Andover, Mass., to lose 26 cents a share. The previous consensus estimate called for a loss of 24 cents.

Prior to its January revenue warning, the Internet advertising company cut 550 jobs, or 50% of its workforce, in a bid to become profitable faster. Engage said it expects the job cuts to generate annualized improvements in operating margins and lead to cost reductions of $120 million to $150 million.

Engage will release its second-quarter results on March 12.

Shares of Engage closed at $1.75 in Nasdaq trading today, but rose to $1.97 in after-hours Island activity.