InfoGroup reports Q3 loss
InfoGroup Inc., formerly known as InfoUSA Inc., reported an operating loss for the third quarter of $1.7 million, or 7 cents per share; compared to net income of $17 million, or 31 cents per share, for the same quarter last year.
The company said the loss was partially due to litigation costs and severance payments made in connection with lawsuits against former CEO Vinod Gupta, who resigned in August.
During Q3 2008, InfoGroup reported revenue of $181.9 million, compared to $185 million for the same period in 2007.
"InfoGroup had a positive third quarter despite the economic headwinds," said Bill Fairfield, CEO of InfoGroup. "We are fortunate not to be dependent on any particular sector nor do we have a high concentration of customers in one area. Our customer base is broad and spread across all industry sectors and sizes of businesses.”
During Q3 2008, the company recorded approximately $17.3 million in non-recurring charges. These charges included $10.2 million in severance payments primarily to Gupta, in connection with the settlement to a shareholder's lawsuit, and $7.1 million in legal expenses and professional fees related to the lawsuit.
Shareholders Cardinal Value Equity Partners and Dolphin Limited Partnership filed the lawsuit last year in Delaware, alleging Gupta had misspent millions of the company's money.
Gupta resigned from his executive position at the firm he founded in 1972 on August 21. His action was part of a settlement agreement relating to the shareholder lawsuit, according to a report filed with the US Securities and Exchange Commission.
