CMGI Loss Is Less Than Expected

CMGI Inc. said its net loss widened in the latest quarter, but less than analysts expected, sending its shares higher in after-hours trading. The Internet venture fund posted a loss of $428 million, or $1.53 a share, far less than the $1.83-a-share loss projected by analysts surveyed by First Call/Thomson Financial. In the year-earlier quarter, CMGI lost $27.8 million, or 15 cents per share. Sales soared to $225.9 million from $43.7 million. CMGI said its operating expenses ballooned to $941.5 million from $77.7 million. Its spending on research and development rose to $49.7 million from $5 million, while its marketing and sales expenses climbed to $128.9 million from $11.3 million. The Andover, Mass.-based company is spending money to build up its Web sites in preparation for selling shares to the public in the companies. CMGI shares rose as high as $60.19 in trading after the close of U.S. markets. They had closed up 13 cents to $56.63 on Nasdaq.