Despite an increase in revenue, net sales were down during calendar 1998 for Omaha, NE-based InfoUSA Inc., Omaha, NE. Full year net sales were $228.7 million, up 18% over $193.3 million in 1997. But the company had a net loss of $2.9 million versus a net loss of $39.8 million in 1997.
A 1998 pre-tax gain of $16.5 million related to the sale of Metromail stock and pre-tax charges of $46.8 million principally related to the company’s CD-ROM business and acquisition-related charges incurred during the year. Results for 1997 include a pre-tax charge of $77.8 million related to acquisitions and acquired databases. Disregarding these adjustments, net income in 1998 would have been $19.3 million, and net income in 1997 would have been $27.9 million.
For fourth-quarter 1998, the company had net sales of 1998 of $56.1 million, up 4% over $53.8 million for the same period last year. But its net income for the fourth quarter was $1.3 million, compared to $3.7 million in fourth-quarter 1997. The quarter and the year ended Dec.31, 1998.
“Although we were focused on implementing the company’s cost reduction program rather than driving revenue growth, we still experienced revenue growth for the quarter. Our efforts to streamline our costs and become more efficient have commenced and we began to realize the benefits during the fourth quarter,” said company chairman and CEO Vinod Gupta in a statement.
In the quarter ending Sept. 30, the company’s cost-cutting measures included layoffs of approximately 350 people, or 17% of the company’s total workforce at the time.
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