Tag - CMGI

CMGI, Inc. (Nasdaq: CMGI) shares are soaring after the provider of supply chain and inventory software reported first-quarter earnings of $8.6 million, or $0.18 per share, beating analyst expectations of $0.10 per share. Last year, the company earned $10.3 million, or $0.21 per share, during the first quarter. The ending of two client programs caused the earnings decline.

"We reported good financial results in the quarter with revenue and profitability in line with or better than our expectations," CEO Joseph Lawler said in a statement. "Revenue was expectedly lower compared with last year due to two specific previously announced client programs that were discontinued; however we are very pleased with the growth we are seeing from other client engagements.”

For the three months ended Oct. 31, the firm’s revenue totaled $274.7 million, below Wall Street projections of $283.6 million and from $283.6 million a year earlier.

“Revenue was expectedly lower compared with last year due to two specific previously announced client programs that were discontinued, however we are very pleased with the growth we are seeing from other client engagements,” Lawler said. “Excluding those discontinued programs, revenue grew by approximately 15% compared to the year ago period. Gross margin performance was higher than expected, driven by work mix, continuous improvement initiatives and higher volumes for certain client programs.”

CMGI said it continues to project fiscal 2008 revenue in the range of $1.1 billion to $1.15 billion.

In morning trading, CMGI shares are soaring 25.17%, or $2.60, at $12.93. Over the last 52 weeks, shares have ranged from $9.66 to $26.