Q1 Sales Flat at InfoUSADatabase marketing services provider infoUSA said yesterday that net sales for the first quarter of 2003 were $76.1 million compared with $76.7 million in first-quarter 2002.
"The company's core business revenue continued to be soft as a result of the weak economy and uncertainty surrounding the war in Iraq," infoUSA chairman/CEO Vin Gupta said. "Our profitability remains among the highest in the industry despite having been negatively impacted by the loss of high-margin revenues from Internet licensing customers that have gone out of business."
InfoUSA, Omaha, NE, reported operating income of $14.3 million, down from $16.3 million for the first quarter of the prior year.
Gupta also said infoUSA strengthened its balance sheet in the quarter, paying down $15.5 million of debt. The company also acquired Yesmail Inc., an e-mail acquisition and retention services provider, entirely from operating cash flow.
The Large Customer Group -- which includes Donnelley Marketing, Walter Karl and Database Licenses -- reported first-quarter 2003 revenue of $36.3 million versus $37.4 million in the comparable quarter last year. InfoUSA said the group stabilized its revenue base by adding new products and services, particularly in e-mail marketing.
The Small Business Group reported 2003 first-quarter revenue of $39.8 million, versus $39.3 million last year. The group experienced 35 percent growth in its Internet revenue in the first quarter versus the prior year. In addition, this group achieved strong year-over-year growth in the Reseller Division and in the Library and Government vertical markets.