Add
IUSA to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| IUSA > SEC Filings for IUSA > Form 10-Q on 10-Aug-2009 | All Recent SEC Filings |
10-Aug-2009
Quarterly Report
Three and Six Months Ended June 30, 2009, Compared to
Three and Six Months Ended June 30, 2008
This discussion and analysis contains forward-looking statements, including
without limitation statements in the discussion of comparative results of
operations, accounting standards and liquidity and capital resources, within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") and Section 27A of the Securities Act of 1933, as amended, which
are subject to the "safe harbor" created by those sections. In some cases these
forward-looking statements can be identified by the use of words such as "may,"
"will," "should," "could," "would," "expects," "intends," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential," "continues" or
the negative of these terms or other comparable terminology. Our actual future
results could differ materially from those projected in the forward-looking
statements. Some factors which could cause future actual results to differ
materially from our recent results or those projected in the forward-looking
statements are described below under the heading "Risk Factors" in Item 1A "Risk
Factors" in our Annual Report on Form 10-K for the year ended December 31, 2008.
Such factors, among others, may have a material adverse effect upon our
business, financial condition, and results of operations. We assume no
obligation to update the forward-looking statements or such factors.
Accordingly, you are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made.
General
Overview
We report results in three segments: the Data Group, the Services Group, and
the Marketing Research Group.
On June 1, 2008, we changed our Company name from infoUSA Inc. to infoGROUP
Inc. (the "Company" or "infoGROUP" or "we"). We are a Delaware corporation
incorporated in 1972.
Our key strategic initiatives for 2009 include:
• Continuing and expanding our initiatives of outreach, transparency and
communications with our shareholders and the entire investment community.
• Accelerating our organic, profitable growth by leveraging our leadership position as a data provider across our subsidiaries, creating both internal and external strategic alliances to add value to new and existing customers, and capitalizing on our existing cross selling opportunities among subsidiaries. We anticipate concentrating our efforts on these opportunities for internal growth, instead of pursuing revenue growth primarily through acquisitions.
• Reinvesting in the business to expand our product offerings, particularly in the integrated digital realm. We plan to provide our customers new products and services, including more internet based and interactive marketing solutions.
• Improving our financial foundation, by reducing costs (without jeopardizing service to our customers), continuing to reduce our debt levels and leveraging our high margin products to increase profitability.
• Continuing our focus on improved corporate governance, including operating under our recently revamped formal policies, functioning under the guidance of our restructured majority independent Board and working with our new management team.
Sales & Marketing Strategy
We have continued to position infoGROUP as a leading brand using multiple
channels, including direct mail, print, search marketing, online advertising and
email. We rebalanced our marketing mix and dollars spent, emphasizing the most
cost-effective channels with the highest return on investment.
Social media is a new market we are building plans around. We have begun to
cautiously utilize social media for marketing, communication, education,
branding and public relations, with the goal of being an industry expert and
thought leader. Including social media in go-to-market strategies will result in
increased traffic to websites, better customer service and connection with other
industry leaders.
Growth Strategy
Our growth strategy continues to have multiple components. Our primary growth
strategy is to improve our organic growth. Key to this is our effort to replace
revenue from declining traditional direct marketing products and services with
our on-line Internet subscription services. Subscription services offer enhanced
annual revenue per customer, assure greater multi-year revenue retention, and,
most importantly, provide greater value to our customers by providing on-going
Internet access to our content and customer acquisition and retention software
tools. Delivery of information via the Internet is the method preferred by our
customers. We are investing in Internet technology to develop subscription-based
new customer development services for businesses and sales persons.
We also intend to continue to grow through strategic acquisitions when
presented with appropriate opportunities. We have grown through more than 35
strategic acquisitions in the last eleven years. These acquisitions have enabled
us to acquire the requisite critical mass to compete over the long term in the
database, direct marketing, e-mail marketing and market research industries. We
also intend to grow through strategic alliances with other players in our
industry. We recently signed a strategic alliance agreement with Experian which
will allow us to gain market share. We continue to see strategic alliances as an
integral part of our growth strategy.
We also are focusing on international growth opportunities. We are now
upgrading our international business databases and expanding our own compilation
efforts and entering into strategic alliances worldwide. Our comprehensive
international database includes information on approximately 4.8 million large
public and private non-U.S. companies in approximately 200 countries. There are
over 11.3 million executives represented in our non-U.S. global database, which
is constantly updated using several daily news sources to track changes such as
executive changes, mergers and acquisitions, and late breaking company news. We
are also putting emphasis on more comprehensive financial information and
regulatory filings. Examples include SEC filings, annual reports, analyst and
industry reports, and detailed corporate family structures.
As we continue to enhance our international databases, we are pursuing high
growth, emerging markets in the Asia-Pacific region, Western Europe, and
Australia. Using London as our international headquarters, we have sales offices
in Hong Kong, New Delhi, Sydney and Singapore.
In 2007, we announced our plan to compile a business database in the United
Kingdom. This database, created from a variety of publicly available sources and
strategic alliances, currently contains information on approximately 1.5 million
phone verified UK businesses with growth expected to total 2.1 million by the
end of the 2009 fiscal year. We are also conducting telephone surveys to
businesses in the database to augment the file with a variety of proprietary
information, including: trading address, name of the owner or manager, number of
employees per location, web site address (URL), email addresses, years
established, and whether the business is a single location or part of a larger
company. We plan to market this database to small and large customers in the
form of customized list products, online access, subscription services, and
license agreements to value added resellers.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, selected financial
information and other data. The amounts and related percentages may not be fully
comparable due to acquisitions.
|
|