Harte-Hanks Inc. reported revenue of $226.5 million for the third quarter of 2002, compared to $224.1 million for the same period last year, a 1% increase.
Operating income was $36.6 million, a decrease of 8.7% from the $40.1 million reported in the third quarter of 2001. Net income was $22.1 million, versus $22.9 million for the same period last year, a 3.2% decrease.
Richard Hochhauser, CEO said in a statement that the revenue decline in the San Antonio-based marketing solutions provider’s direct marketing business segment for the quarter was 1.8%, the smallest comparative decline since early 2001. Third quarter comparisons to last year for all vertical markets were more favorable than the nine-month comparisons for last year, he said.
“We see this as some indication that direct marketing revenues are beginning to stabilize, and remain cautious given the economic environment,” he said, noting that the company is showing declines in the third quarter for all vertical markets compared to last year, except high-tech/telecom and select markets, which are marginally up.
“The tough economic environment, pricing pressures and difficult comparisons against last year’s expense reductions have contributed to the decline in operating margins and we are disappointed with these results,” he added. “We do not see fundamental change in the behavior of our direct marketing clients. We will continue to manage this business with tight cost controls and are committed to making selective investments in order to support long term growth.”
Operating income for the quarter was up 11% on revenue growth of 6.1%. The growth was driven by both ROP advertising and distribution related products, said Hockhauser.
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