InfoUSA Q3 Profit, Revenue Rise
The Omaha, NE, database marketing services provider reported operating income of $15.2 million, up from $10.1 million for the third quarter of the prior year.
Year-to-date revenue for fiscal 2005 was $284.4 million, up 12 percent from $254.8 million. The company reconfirmed its revised guidance for fiscal 2005 of $370 million to $380 million in revenue.
"We were pleased with the performance of our subscription products during the first nine months of this year," infoUSA chairman/CEO Vin Gupta said in a statement. "By converting our small business customers to subscription, we are creating a recurring revenue stream. This conversion to subscriptions will continue to be our key focus and growth strategy for the foreseeable future."
Meanwhile, investment group and infoUSA minority investor Dolphin Limited Partnership, Stamford, CT, issued an open letter to infoUSA shareholders Oct. 25 based on its continuing quest to gain access to infoUSA books and records. Dolphin owns 1.5 million shares, or 2.8 percent, of infoUSA's common stock.
Dolphin issued a Sept. 19 request for infoUSA records and subsequently initiated an action in a Delaware court to expedite the process. The request stems in part from an abandoned attempt by Gupta to take the company private.
On June 13, Gupta announced his proposal to pay $11.75 in cash for each outstanding share of infoUSA common stock he does not own. Vin Gupta & Co. LLC is controlled by Gupta, who owns 38 percent of the stock. The proposal was withdrawn Aug. 24 after Gupta's offer was not favored by the company's special committee of the board of directors.
Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters