Pushing for Profitability, CMGI Strikes a Blow for Clarity

In the land of Internet stocks, where the phrase "path to profitability" has become a sacred chant, you're never too big to get religion.

That was the theme of CMGI's (CMGI Quote) Thursday morning conference call with analysts, following the announcement of the company's reorganization into six lines of business.

CMGI Chairman and CEO David Wetherell reiterated on the call that in terms of revenue, CMGI is bigger and faster growing than Internet bellwether Yahoo! (YHOO Quote). But his comments and the company's reorganization served as stark reminders that size, growth and a bushel full of venture capital investments make for a pretty dim halo if you can't convince people you want to be saved from the hell of unprofitability. With the stock down some 75% from its high, CMGI is doing all it can to appeal to bottom-line watchers, though at midday Thursday investors weren't taking the bait: The stock was down $1.88, or 4%, at $44.81.

The Greatest of These Is Clarity

So seeking to persuade the market that CMGI's style is penny-pinching, not prodigal, Wetherell and his followers are making a number of moves to simplify its structure and focus on profitability -- and changing how the company reports its results so that investors can get a better idea of what the company is up to and how well it does it. ...