InfoUSA Q2 Revenue, Profit Rise
The Omaha, NE, firm reported operating income of $11.8 million, up from $10.1 million for the second quarter of the prior year.
Revenue for the first half of fiscal 2005 was $188.8 million, up 15 percent from $164.4 million the prior year. The company reconfirmed its revised guidance for fiscal 2005 of $370 million to $380 million in revenue.
InfoUSA also said that figures for the quarter were hurt by about $1.9 million and year-to-date figures by about $4.9 million involving the acquisition accounting related to OneSource revenue and conversion of a portion of infoUSA Group business to subscription format.
"We were pleased with the performance of our subscription products during the first half of this year," infoUSA chairman/CEO Vin Gupta said in a statement. "Our rollout of subscription products is very encouraging and is gaining acceptance among small businesses, entrepreneurs and sales people. We were successful in growing our subscription base while keeping our cancellation rates below 10 percent. Our strategy of migrating small business customers from one-time purchasers of sales leads to a subscription-based service will be a gradual process but a key growth driver for infoUSA."
On June 13, Gupta announced his proposal to pay $11.75 in cash for each outstanding share of infoUSA's common stock he does not own. Vin Gupta & Co. LLC is controlled by Gupta, who owns 38 percent of the stock. The transaction would be made possible through debt financing, and the offer values the company at $630 million.
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