Research Revenues Down 13% at Infogroup

Database giant Infogroup has reported a 13% drop in fourth quarter revenue to $24.7m for its market research arm, with an operating loss of $7.7m owing to a goodwill impairment charge.

In quarter three, the MR group - which includes Opinion Research Corporation, ORC International, NWC and Guideline - saw revenue decline 16% to $24m, with an operating loss of $700k compared with operating income of $1.4m for the prior year period.

For the group as a whole, revenue fell 11% to $125.8m in the fourth quarter, compared with $141.9m for the same period in 2008.

The group's operating income for Q4 was $7.5m, which included $10.3m of restructuring, non-recurring and non-cash charges; compared to operating income of $9.9m in Q4 2008, which included $11.4m of comparable charges.

Chief Financial Officer Tom Oberdorf said that cost reductions and efficiencies within the organization had become 'a way of life' at Infogroup, and that additional cost savings are anticipated in 2010.

For Q4, Infogroup's net loss from continuing operations was $1.4m, or a loss per share of $0.02; compared to earnings of $0.02 per share on net income of $1.3m for continuing operations in Q4 2008.

Revenue for the full year was down 15% to $499.9m, compared with $588.7m for fiscal year 2008. Excluding the effect of foreign exchange, the decline was $79.4m, or 13%.

Infogroup's operating income for 2009 was $20.5m, which included $41.0m of restructuring, non-recurring and non-cash charges; compared with operating income of $17.0m for 2008, which included $52.0m of comparable charges.

In the market research division, revenue for the full year fell 16% to $97.9m, while operating loss was $8.5m compared to an operating income of $4.5m in 2008.

'Of all our business segments, I think the one that's likely to have the lowest growth is market research,' stated CEO Bill Fairfield. 'Market research was impacted the most by the marketing spend. We are seeing signs that people are starting to spend a little more money there, but if I were a betting man I would say that since that is the most discretionary of the spend, it's still probably the one that's going to be somewhat the most depressed.'

InfoGroup has recently been laying off employees and closing some facilities as it positions itself for a possible sale of all or part of the company.

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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