InfoUSA 2Q Revenue Down, but Profit Up

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InfoUSA, a data products and services provider, announced second-quarter revenue of $70.9 million, down 9 percent from $77.7 million in the second quarter of 2000.


But the Omaha, NE-based company's second-quarter net income rose 60 percent to $2.2 million, from nearly $1.4 million in the year-ago quarter. InfoUSA's second quarter ended June 30.


Among its business units, the Large Customer Group had revenue of $27.4 million, a drop from $28.6 million in the prior-year period. Yet the group increased its profitability despite softer customer demand and delayed ordering patterns resulting from the economic downturn as well as the postal rate increase affecting its customers.


This improved profitability results from changes in its business mix, including a double-digit revenue increase from its list management business, Walter Karl. The group also benefited from infoConnect OnePass, a new data hygiene and data enhancement service that allows subsidiary company Donnelley Marketing to reduce its processing costs and to pass these savings on to its customers.


The Small Business Group reported second-quarter revenue of $28.5 million, compared with $32.2 million in the year-ago quarter. The group experienced double-digit revenue growth and increased profitability during the second quarter from several of its vertical market groups, notably its Library, Government, and National and State Directory divisions.


The Database License Group had revenue of $7.3 million, down from $8 million in the year-ago period. The group attributed the decrease to changes in timing and terms of annual customer contracts. During the quarter the group signed new long-term contracts with Naviant, Navtech and Marketing Software Corp. while continuing to expand relationships with existing customers.


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