Omaha, Neb.—InfoUSA announced it has instituted a hiring freeze amidst reporting net income down in both the second quarter and the first half of 2006.
Net income for the second quarter of 2006 was $3.2 million, a 49.8% decrease from the same period last year. Net income for the first half registered at $11.1 million, a decrease of 27.7% from last year.
Revenues came in at $100.3 million for second quarter 2006, up from $93.7 million in second quarter 2005, and first half sales were $203.4 million, up 7.7% from $188.3 million.
Chairman-CEO Vin Gupta noted in the earnings report that the company spent $1.7 million in the second quarter on its proxy contest, referring to a minority shareholder's bid to oust Gupta and other board members.
The company is also investing significantly more in branding and advertising to promote its products. InfoUSA increased its advertising by $2.9 million over the second quarter of 2005 and by $5.4 million year to date over the same period last year. The increased spending was in radio, TV, search and other mass advertising. The company has retained two agencies, A. Eicoff & Co. in Chicago and DDB San Francisco, to develop television advertising.