Market Research Revenue Down 16% at infoGroup

Data giant infoGroup has reported revenue for its MR firms down 16% to $24m in quarter three, with an operating loss of $700k compared with operating income of $1.4m for the prior year period.

infoGroup's market research division - which includes Opinion Research Corporation and Guideline in the US, and NWC Research in Australia - recorded a 2.9% drop in sales for the third quarter.

For the group, revenue dropped 14% to $125.0m from $145.0m for the same period in 2008. Operating income for the third quarter was $9.4m, compared with an operating loss of $12.4m in the third quarter of 2008.

Net income for the third quarter of 2009 was $4.8m, or earnings per share of $0.08, compared with a net loss of $8.6m, or a loss per share of $0.15 in 2008.

In total, the company recorded $9.3m in costs during Q3 for restructuring, non-recurring and non-cash charges. This included $2.0m in legal and professional fees related to the SEC investigation, $4.0m in restructuring costs for severance associated with headcount reductions and facility closures, $2.9m for impairments and write-down of assets and $0.4m in non-cash stock compensation expense.

CFO Tom Oberdorf said that year-to-date savings initiatives during 2009 are estimated to have an annualized impact of around $35m. He confirmed that new initiatives planned in the fourth quarter will further compound the firm's savings.

'We have worked hard to generate profitable revenue growth during these tough economic times, reduce our debt quarter over quarter and reinvest in the business by building new products and services for the future,' stated CEO Bill Fairfield .' All these initiatives continue to help move the company in the right direction.'

Yesterday, infoGroup responded to a press report that alleged the firm is taking bids to sell the company, stressing that no decision to sell has been made.

Web site: www.infogroup.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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