InfoUSA, the Omaha, NE-based information services company, had net sales of $75.9 million for third-quarter 2000, up slightly from $75.2 million in third-quarter 1999. But the company also had a net loss of $7.4 million, compared with net income of $1.1 million a year ago.
Much of this may be attributable to a change in the company’s income realized from investments. In third-quarter 1999 this amounted to $9.8 million, while in third-quarter 2000 this fell to $403,000.
But other expenses in 2000 contributed to the shortfall. While the company had a third-quarter 1999 acquisition cost of $9.3 million, which was not repeated in 2000, it had significant increases in its stock compensation, depreciation and amortization, goodwill amortization, and interest expenses.
To combat the shortfall, the company has reorganized its Donnelley Marketing division into eight vertical markets (DIRECT Newsline, October 13, 2000. Additionally, its businessCreditUSA.com will implement a $3 per record charge for each credit report it issues.
The company make also trim its development expenses. “Most of the development work in our Internet division has been completed,” said infoUSA chairman and CEO Vinod Gupta in a statement. “Therefore, with the exception of infoUSA.com which is self-funding, the need for further investment in our Internet subsidiaries will be significantly reduced.”
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