InfoUSA reports $11.15 million net income for third quarter
Database and list services company infoUSA Inc. reported third-quarter revenue of $106.4 million, an 11 percent increase from $95.5 million in the year-ago period.
Net income at the Omaha company also rose to $11.15 million in the third quarter versus $8.1 million in the same period last year. Earnings per share were up to 20 cents compared with 15 cents in 2005.
"Our third quarter operating income was $20 million versus $15.2 million during the corresponding quarter of 2005," Vin Gupta, chairman of infoUSA, said in a statement issued in the evening of Oct. 19.
"The operating margin was up in the third quarter of 2006 due to seasonality in our large customer market," he said.
InfoUSA cited its progress in building its subscription model as a key reason for this past quarter's performance.
The company added 6,500 subscribers to its Salesgenie.com, Credit.net, SalesLeadsUSA.info and other subscription products. It now has about 48,000 subscribers with an annualized revenue of more than $87 million.
The cancellation rate on its subscription products is stable at nearly 18 percent, infoUSA claims.
InfoUSA also owns list brokerage and management firms like Walter Karl, Edith Roman, Millard Group and Mokrynskidirect as well as e-mail marketing company Yesmail. It will soon absorb Opinion Research, too.
The third-quarter news comes the same week that the Court of Chancery for the State of Delaware dismissed a lawsuit filed in February by Cardinal Value Equity Partners LP against the company and some of its directors including Mr. Gupta.
InfoUSA's board of directors in June 2005 formed a special committee to mull over a proposal from Mr. Gupta to buy shares of infoUSA not owned by him. Mr. Gupta's withdrawal of the proposal led to the committee's dissolution in August 2005.
Cardinal Value Equity Partners filed a lawsuit in February to have the court to order infoUSA to reinstate the special committee. InfoUSA and its defendants filed a motion with the court to dismiss all claims.
The court order, which is without prejudice, lets Cardinal to file an amended complaint within 60 days.