ChoicePoint Second-Quarter Profit drops to $34.9 Million

Share this content:

ChoicePoint Inc.'s profit fell 4.1 percent in the second quarter, following about $6 million in charges related to a data breach, restructuring and stock options. The Alpharetta, GA-based identification and credential verification services provider had net income of $34.9 million on $240.8 million in revenue in the second quarter compared with net income of $36.4 million on $227.4 million in revenue in the second quarter of 2005.

The results for the second quarter that ended June 30 include $1.8 million of asset impairment, severance and lease abandonment costs, primarily associated with the consolidation of certain technology platforms, $3.1 million in stock option expenses for specific costs related to a data breach by identity thieves in February 2005 and $1 million for legal expenses and other professional fees related to the data breach.

Earlier this month, ChoicePoint  reported plans to sell its direct marketing, forensic DNA and shareholder services businesses following a strategic review. ChoicePoint also announced two acquisitions in the insurance industry, which included Insuratec Inc. and ePolicy Inc.

Through six months, the company had net income of $65.5 million on $476.8 million in revenue, compared with net income of $73.4 million on $450.9 million in revenue in the same period of 2005.

Based on recent business and economic trends, ChoicePoint expects 2006 full year internal revenue growth from continuing operations to be in the range of 5 to 7 percent, with improving trends in the second half of 2006.

Including the impact of acquisitions, total revenue growth is expected to be in the range of 6 to 8 percent for the full year 2006.


Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above