Summary of INFOGROUP INC. - Yahoo! Finance

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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 of Part II of this Form 10-Q and in Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2007. 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
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.
We report results in three segments: the Data Group, the Services Group, and the Marketing Research Group.
Our initiatives in the first nine months of 2008 included:
• Announcing the acquisition of Direct Media, Inc., which closed effective January 1, 2008. Direct Media, Inc., which became part of the Services Group, is a provider of list brokerage, list management, analytics, database marketing and data processing services.

• Expanding our international business and executive databases by adding content for China and Australia.

• Expanding the presence of Yesmail, our e-mail technology company, and making advancements in technology and product development processes.

• Continuing to invest in merchandising, advertising and branding. The advertising campaigns include e-mail, print, television, radio, direct mail, and search word advertising, as well as the use of white glove client services. Most notable advertisements included commercials that aired during the Super Bowl, on February 3, 2008, featuring Salesgenie.com.

• Completing the compilation of infoUK.com's UK Business Database, which provides contact names and addresses of businesses in the United Kingdom. We are selling information in 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.

• Significant steps were made towards improving corporate governance and internal controls over financial reporting as noted in Item 4, "Controls and Procedures."

Sales & Marketing Strategy
We employ several media options to grow and increase our market share, including direct mail, print, outbound telemarketing, search marketing, online advertising, event sponsorships, and television, radio and e-mail marketing. In the first nine months of 2008, we continued these traditional forms of advertising, as well as national and local radio and television campaigns to further build our brand name and drive revenue for our online subscription product, Salesgenie.com. We continue to advertise to promote our valuable brand, including television advertisements in the first nine months of 2008 that aired during the Super Bowl, and other high profile sporting and news coverage events.

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To monitor the success of our various marketing efforts, we have incorporated data gathering and tracking systems. These systems enable us to determine the type of advertising that best appeals to our target market so that we can make future investments in these programs and obtain a greater yield from our marketing. Additionally, through the use of our database tools, we are working to more efficiently determine the needs of our various client segments and tailor our services to their individual needs. With this system, we plan to strengthen relationships and support marketing campaigns to attract new clients. 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 digital solutions initiatives including online 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 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 people.
We have grown through more than 36 strategic acquisitions in the last ten years. These acquisitions have enabled us to acquire the requisite critical mass to compete over the long term in the databases, direct marketing, e-mail marketing and market research industries. During 2007, we acquired Guideline, Inc., NWC Research and Northwest Research Group, which complement our existing market research services, and expresscopy.com, a provider of printing and mailing services that specializes in short-run customized direct mail pieces, allowing us to expand our existing data services. In 2007, we also acquired SECO Financial, a specialist in database marketing to the financial services industry. In 2008, we acquired Direct Media, Inc., which provides list brokerage, list management, analytics, database marketing and data processing services. We are currently focusing on organic growth and using any excess cash flow to pay down existing debt. However, in the future, we plan to consider strategic acquisitions that complement our existing businesses.
We also are focusing on international growth opportunities. We are now upgrading our international business databases and expanding our own compilation efforts. In late 2005, we opened a database center in India. We have also partnered with content providers worldwide. Our comprehensive international database includes information on approximately 1.1 million large public and private non-U.S. companies in approximately 200 countries. There are over 10.4 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 turnover, 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 structure. Additionally, we believe that the acquisition of Australia-based NWC Research in July 2007 will help us grow in the Asia-Pacific region.
As we continue to enhance our international databases, we are aggressively pursuing high growth, emerging markets in the Asia-Pacific region, Western Europe, Australia, and South America. Using London as our OneSource international headquarters, we have sales offices in Hong Kong, New Delhi, Sydney and Singapore.
In the third quarter of 2008, we completed the compilation of a business database in the United Kingdom. This database, created from a variety of publicly available sources, contains information on approximately 3.1 million UK businesses. We also conducted telephone surveys of 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), years established, and whether the business is a single location or part of a larger company. We have now begun to market and sell 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.

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