SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 17, 2000 CMGI, Inc. ----------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 000-23262 04-2921333 -------------------------------------------------------------- (State or other juris- (Commission (IRS Employer diction of incorporation) File Number) Identification No.) 100 Brickstone Square, Andover, MA 01810 ---------------------------------------- --------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (978) 684-3600 N/A ------------------------------------------------------------- (Former name or former address, if changed since last report)
Item 9. Regulation FD Disclosure ------------------------ On November 13, 2000 we conducted a conference call related to our financial guidance for the fiscal year ending July 31, 2001. We are furnishing the following information in response to questions received after the conference call. We do not intend to update this information, unless we believe that it is necessary to do so in accordance with Regulation FD. Q: What were CMGI's holdings of publicly traded stock at October 31, 2000? A: Please see Table 1. ------- Q: What were CMGI's holdings of publicly traded stock at July 31, 2000? A: Please see Table 2. ------- Q: Can you help us understand how/why CMGI's stock holdings are designated as "available-for-sale" in its consolidated balance sheet and why these stock holdings are "carved out" from the total pool of public securities held by the company? A: The classification of certain of our publicly traded stock holdings as "available-for-sale securities" in our consolidated balance sheet is governed by Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities" (SFAS No. 115). Our holdings in publicly traded stock for which our ownership interest in the underlying company is greater than 20%, or for which it is determined that we can exercise significant influence over the underlying company, do not meet the criteria for classification as 2
"available-for-sale securities" under SFAS No. 115. These investments are accounted for on either the consolidation or equity method of accounting in our consolidated financial statements. In addition, certain of our holdings in publicly traded stocks are subject to various contractual lock-up agreements. If a marketable security carries restrictions on transferability for a period of greater than one year, the security does not meet the criteria for classification as "available-for-sale securities" under SFAS No. 115. Q: CMGI disclosed on the conference call that subsequent to July 31, 2000 AdForce was transitioned from the Interactive Marketing segment to the Infratructure segment and that Signatures Network would be transitioned from the Search & Portals segment to the e-Business and Fulfillment segment. Further, as a result of these reporting changes, results for the fiscal fourth quarter of the year ended July 31, 2000 would be reclassified. What are the fourth quarter results taking into account these reclassification(s)? What are the third quarter results, taking into account these reclassification(s)? A: Please see Table 3. ------- 3
TABLE 1 SIGNIFICANT HOLDINGS OF PUBLICLY TRADED STOCK AS OF OCTOBER 31, 2000 Number of Amounts in thousands Shares * - -------------------- --------- Engage, Inc. 152,339 NaviSite, Inc. 40,116 Pacific Century Cyberworks, Ltd. 448,347 Terra Lycos, Inc. 6,786 Primedia, Inc. 8,000 Vicinity Corporation 4,636 Ventro Corporation 3,194 eBay, Inc. 282 divine interVentures, inc. 4,749 Hollywood Entertainment Corporation 4,358 Akamai Technologies, Inc. 250 Netcentives, Inc. 1,694 Virage, Inc. 1,078 * -- Certain portions of our publicly-traded stock holdings ultimately may be attributable to CMGI@Ventures' profit members. Therefore, included on this schedule are only the portion of our total holdings which are expected to be attributable to CMGI. Also, excluded from our holdings on the above schedule are approximately 0.6 million shares of Yahoo!, Inc. common stock which we pledged in conjunction with a forward-sale agreement entered into during fiscal 2000. 4
TABLE 2 SIGNIFICANT HOLDINGS OF PUBLICLY TRADED STOCK AS OF JULY 31, 2000 Number of Amounts in thousands Shares * --------- NaviSite, Inc. 40,116 Engage, Inc. 154,639 Pacific Century Cyberworks, Ltd. 448,347 Lycos, Inc. 11,555 Primedia, Inc. 8,000 Kana Communications, Inc. 3,692 Vicinity Corporation 4,596 Critical Path, Inc. 1,316 eBay, Inc. 1,224 divine InterVentures, inc. 4,749 Hollywood Entertainment Corporation 4,358 Ventro Corporation 3,103 Netcentives, Inc. 1,694 Akamai Technologies, Inc. 250 Virage, Inc. 1,078 *--Certain portions of our publicly-traded stock holdings ultimately may be attributable to CMGI@Ventures' profit members. Therefore, included on this schedule are only the portion of our total holdings which are expected to be attributable to CMGI. Also, excluded from our holdings on the above schedule are approximately 1.2 milion shares of Yahoo!, Inc. common stock which we pledged in conjunction with a forward-sale agreement entered into during fiscal 2000. 5
TABLE 3 - ------- Three Months Ended July 31, 2000 -------------------------------------------------------------------------------------------------- Infrastructure Internet Interactive eBusiness and Search and and Enabling Professional Marketing Fulfillment Portals Technologies Services Other Total -------------------------------------------------------------------------------------------------- (in thousands) Net revenue $ 72,546 $ 171,327 $ 67,792 $ 35,096 $ 30,487 $ -- $ 377,248 Operating expenses: Cost of revenue 40,838 151,493 33,044 61,666 21,525 -- 308,566 Research and development 13,507 569 26,786 11,604 225 -- 52,691 In-process research and development 18,500 -- -- -- -- 1,246 19,746 Selling 40,184 14,980 79,006 21,116 3,052 2,953 161,291 General and administrative 13,575 10,236 13,767 17,661 7,148 21,297 83,684 Amortization of intangible assets and stock-based compensation 138,013 38,839 219,981 82,760 51,379 51 531,023 -------------------------------------------------------------------------------------------------- Total operating expenses 264,617 216,117 372,584 194,807 83,329 25,547 1,157,001 Operating loss $ (192,071) $ (44,790) $ (304,792) $ (159,711) $ (52,842) $(25,547) $(779,753) ================================================================================================== Three Months Ended April 30, 2000 -------------------------------------------------------------------------------------------------- Infrastructure Internet Interactive eBusiness and Search and and Enabling Professional Marketing Fulfillment Portals Technologies Services Other Total -------------------------------------------------------------------------------------------------- (in thousands) Net revenue $ 64,783 $ 69,253 $ 63,073 $ 26,460 $ 9,575 $ -- $ 233,144 Operating expenses: Cost of revenue 46,941 58,160 29,393 45,869 7,955 -- 188,318 Research and development 9,883 711 28,308 9,191 1,578 -- 49,671 In-process research and development 29,300 -- -- 11,920 -- -- 41,220 Selling 35,768 2,772 67,434 18,839 2,297 1,802 128,912 General and administrative 15,814 5,659 13,149 12,581 4,104 10,007 61,314 Amortization of intangible assets and stock-based compensation 151,682 2,348 249,224 61,307 17,372 54 481,987 -------------------------------------------------------------------------------------------------- Total operating expenses 289,388 69,650 387,508 159,707 33,306 11,863 951,422 Operating loss $ (224,605) $ (397) $ (324,435) $ (133,247) $ (23,731) $(11,863) $ (718,278) ================================================================================================== 6
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: November 17, 2000 CMGI, Inc. ---------- (Registrant) By: /s/ Andrew J. Hajducky, III ----------------------------------- Andrew J. Hajducky III Executive Vice President, Chief Financial Officer and Treasurer 7