InfoUSA chairman/CEO Vin Gupta said he remained confident about the future of his company despite Nasdaq's threat to remove the database provider's stock listing.
Speaking to investors during a conference call last week, Gupta said infoUSA meets every standard for listing on the Nasdaq stock exchange except for the $5 minimum bid price requirement. Gupta described the problem with Nasdaq as a “technicality” and said it could be resolved, possibly by a reverse stock split.
InfoUSA has requested a hearing with Nasdaq officials to contest the removal of its stock listing. That hearing is expected to be held sometime next month, according to infoUSA.
Gupta said the company has made efforts to increase its profitability and has cut its monthly expenditures by $4.5 million since the end of the fourth quarter. InfoUSA, Omaha, NE, has eliminated 450 employees as part of the cost-cutting effort. The employees were part of infoUSA's Internet division.
Highlighting recent positive developments for investors, Gupta announced that office retail chain Staples will sell infoUSA's business credit ratings database on CD-ROM for $9.95 at 1,000 Staples stores in the United States. The deal with Staples will help to increase infoUSA's customer base, Gupta said.
Also, InfoUSA has elected former U.S. Sen. Bob Kerrey and Rob Chandra, venture partner at Trust Company of the West, Los Angeles, to its board of directors. They replace Ben Nelson, who was required to resign because of his election as senator from Nebraska, and Charlie Fote, who resigned because of his recent promotion to CEO of First Data Resources, Omaha, NE.