After the close of trading today, or shortly before the close as before, we’ll get the fiscal Q3-2008 quarterly earnings report out of CMGI Inc. (NASDAQ: CMGI).

Unfortunately there is only one real estimate out there and that is for earnings of $0.08 EPS on $282.1 million in revenues.  With only one estimate and with how this has performed after earnings in the past, it is obvious that relying only on the raw numbers is not the way to go.  Back in March, the company gave the following guidance for this Fiscal Year:

• Revenue of $1.10 billion to $1.15 billion;
• Operating income before any restructuring expenses, to be approximately 2.0% to 2.5% of revenue in fiscal 2008;
• Restructuring expenses for fiscal 2008 are expected to be $5 million to $8 million.

The company also repurchased 507,000 shares for some $6 million last quarter, with it still having authorizations of $36 million available for future repurchases in its previously announced $50 million stock buyback plan.

The company has made a better transition away from being an incubator only into an operating company via its ModusLink supply chain unit. 

More interesting than elsewhere, CMGI has slowly and quietly seen a rapid share price appreciation of nearly 40% above its March 2008 lows.  While it has had a hard time staying above $15.00 in the last two weeks, its move has nonetheless been an impressive one.

As of January 31, 2008, CMGI had working capital of approximately $320.4 million compared with $319.4 million at January 31, 2007. Included in working capital as of January 31, 2008 were cash, cash equivalents and marketable securities totaling $265.2 million compared to $275.0 million at January 31, 2007. 

Its current market cap is roughly $730 million.  Shares are up less than 1% at $14.90 today, and the 52-week trading range is $9.66 to $21.80.

Jon C. Ogg    
June 9, 2008

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