Summary of INFOGROUP INC. - Yahoo! Finance

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Three and Nine Months Ended September 30, 2009, Compared to Three and Nine Months Ended September 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 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:
Х Continuing and expanding our initiatives of outreach, transparency and communications with our shareholders and the entire investment community.

Х 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.

Х 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.

Х 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.

Х 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.

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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. Last quarter we 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. Outside of the United States, we have sales offices located in the United Kingdom, Australia, Canada, China, and Hong Kong.
In 2007, we announced our plan to compile a business database in the United Kingdom. This database now contains information on approximately 2.2 million records, which is deemed to be a complete database. All the records have been created from a variety of publicly available sources and strategic alliances and have been telephone verified. 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 are marketing this database to small, medium and large customers in the form of customized list products, online access, subscription services, and license agreements to end users as well as 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.

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