Profit Falls, Revenue Rises at infoUSA

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Second-quarter profit for database marketing services provider infoUSA fell 21.4 percent to $3.71 million versus $4.72 million last year, while net sales rose to $83.7 million from $78.8 million, according to the company's earnings report released Monday.


The Omaha, NE, company reported operating income of $10 million, down from $15.1 million last year.


InfoUSA's Donnelley Group, which includes Donnelley Marketing and Walter Karl, reported second-quarter 2004 revenue of $45.5 million, up 17 percent from last year. InfoUSA said this revenue growth stemmed from the acquisition of Edith Roman Associates, OneSource and Triplex Direct Marketing Corp.


The infoUSA Group, which offers directory products, vertical industry databases, online mailing lists, marketing leads and retail consumer products, reported second-quarter revenue of $38.3 million, down 5 percent from last year. An effort to migrate customers of these businesses to subscription products from one-time sales will cause short-term revenue reduction, the firm said.


"The [revenue] growth was primarily driven by three acquisitions: Triplex, OneSource and Edith Roman," infoUSA chairman/CEO Vin Gupta said in a statement. "We plan to fully integrate both OneSource and Edith Roman by the end of this year. We are committed to achieving 25 percent to 30 percent margins in both these businesses by streamlining their operations and cutting out public company and duplicative costs."


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