InfoUSA's Q1 net income drops 20 percent
Database marketing firm infoUSA's first-quarter net income fell 20 percent, as higher expenses outpaced revenue growth.
Quarterly earnings totaled $6.3 million, versus earings of $7.9 million during the same period a year ago. Revenue grew 53 percent to $157.9 million, from $103.1 million a year ago. Revenue growth was spurred by the acquisition of data marketing company Opinion Research, which the company bought for $134.3 million in December, infoUSA said. Excluding Opinion Research, revenue grew 6 percent to $109.8 million.
"The first quarter of 2007 was a record quarter for infoUSA," said Vin Gupta, founder, chairman and CEO of Omaha, NE-based infoUSA, in a statement. "We experienced dramatic revenue growth due to the acquisition of Opinion Research, and reported growth in our core business."
InfoUSA, founded in 1972, is a leading provider of business and consumer information products, database marketing services, data processing services and sales and marketing offerings.
The company's first quarter operating income was $14.8 million, which includes $1.6 million for Opinion Research. Excluding Opinion Research its operating income was $13.2 million, compared to $15.5 million in the first quarter of 2006.
During the first quarter of 2007 the company spent $4.6 million for advertisements for the Super Bowl and the NCAA Final Four Basketball Tournament. The company also recorded expenses of $2.1 million related to the transition of infoUSA national accounts to Omaha.
The segment revenue for the first quarter was as follows:
--Revenue for the data group in the first quarter was $78.4 million compared to $76.5 million for the same period last year. Growth for the quarter for the data group was 2 percent.
--Revenue for the services group in the first quarter was $31.4 million compared to $26.6 million for the same period last year. Growth for the quarter for the services group was 18 percent.
-- Revenue for the marketing research group in the first quarter was $48.1 million. The group is composed of Opinion Research and Macro International, acquired Dec. 4, 2006.