InfoUSA Returns to Profitability
InfoUSA, the Omaha, NE-based data products and services provider, had net income of $1.9 million in the first quarter of fiscal 2001, compared with a loss of $11.6 million one year ago. The first quarter ended March 31.
The last time the company reported profitability was in the second quarter of 2000.
The company’s net sales dropped from $81.5 million in first quarter 2000 to $73.9 million this year, although they did rise from fourth quarter 2000’s $70.4 million.
“The fact that we achieved these results during the most severe U.S. economic slowdown in a decade is extremely encouraging,” Vin Gupta, infoUSA’s chairman and CEO, said in a statement. “We closed several deals with new customers in all of our divisions. This is significant in that we signed new business at a time when many of our customers and prospects were curtailing or postponing orders due to the weakened economy.”
Cost-cutting measures also played a part in the company’s return to profitability. In January 2001, infoUSA laid off 150 employees, resulting in a one-time $900,000 charge. The staff reductions came on the heels of 350 positions terminated in December 2000.
Among its divisions, infoUSA.com had revenue of $5 million during the quarter, up from $4.9 million last year, with earnings of $200,000, compared to a loss of $2.6 million in first quarter 1999.
The Large Customer group, which includes Donnelley Marketing and Walter Karl, had revenue of $27.3 million, compared with $29.9 million in first quarter 2000 and $27.6 million in fourth quarter 2000. Despite the revenue fall-off, infoUSA reported that this division increased its profitability due to new customers in the financial, telecommunications and direct marketing industries.
InfoUSA’s Small Business Group had revenue of $30.9 million, compared with $33.2 million during first quarter 2000 and $29.2 million in fourth quarter 2000. This group, according to the company, had double-digit revenue growth and increased profitability from several key groups of customers, including the Middle Market, Library, infoCanada and American Church List divisions.
Finally, the firm’s Database License group had revenue of $7.6 million, down from $8.6 million in first quarter 2000 but up from $6.9 million in fourth quarter 2000. InfoUSA attributes the drop in revenue to a consolidation among its customers.
The company has also begun to pay down the debt load incurred during the late 1990s as a result of several acquisitions. InfoUSA’s total debt, which stood at $261.5 million in first quarter 2000, was $248.7 million at the end of the most recent quarter.
