Internet business incubator
reported Tuesday that its net loss in its third fiscal quarter was far wider than in the comparable 1999 quarter, but that deficit was still significantly smaller than Wall Street had expected, causing the company's stock to rise in after-hours trading.
The company's revenue grew 417%, but higher expenses led to the bigger loss. CMGI finances, develops and pairs up young Internet companies as they ready themselves for public offerings.
For the quarter ended April 30, CMGI reported a net loss of $28 million, or $1.53 a share, compared with a loss of $27.8 million, or 15 cents, a year earlier.
The latest loss was lower than analysts' consensus expectations for a loss of $1.83 a share, according to
First Call/Thomson Financial
Shares of Andover, Mass.-based CMGI rose 3 3/16, or 5.7%, in after-hours trading, according to
. That came after the stock closed up 1/8 at 56 5/8 in regular trading.
CMGI's revenue rose to $226 million from $43.6 million a year earlier.
The company posted an operating loss of $716 million, an increase of more than 20-fold from its loss of $34 million in the year-earlier quarter.
CMGI said its results were affected in the third quarter by seven acquisitions, pre-tax gains of $209.3 million on the sale of
stock, $4.2 million on the sale of
stock and a gain of $20 million resulting from issuance of stock by
in its initial public offering.