News notes

The board of United Business Media plc has appointed its financial advisers, Dresdner Kleinwort Wasserstein and Allen & Company LLC, to conduct a strategic review of NOP World, including developing NOP World further, expanding it through strategic alliances or selling it.

Netherlands-based VNU announced that the U.S. District Court for the Southern District of New York has dismissed with prejudice all remaining claims in the antitrust case against its ACNielsen business unit by Information Resources Inc. (IRI). In a company statement, Rob van den Bergh, chairman and CEO of VNU, stated: “ACNielsen has consistently said from the beginning of this case that IRI’s claims were without merit and brought to chill competition. The court’s decision clearly demonstrates that ACNielsen acted lawfully and that the allegations made by IRI were unfounded. Competition belongs in the marketplace, and not in the courts. We are gratified that the trial court has dismissed this case and are confident of our position on any appeal.”

In an order issued on December 3, 2004, the court ruled that the economic analysis on which IRI relied to establish its pricing claims was inadmissible as a matter of law. The court ruled that IRI’s expert report on liability and damages, to the extent it relied on the improper analysis, could not be presented at trial. After that ruling, IRI advised the court that the pricing claims were the foundation of its case and, without the evidence excluded by the court, there was “little left of its case to try.” The parties then agreed to enter into a stipulation providing for a final order and judgment in the trial court.

In February, New York-based Nielsen Media Research launched a branding advertising campaign to heighten awareness about who Nielsen is and to inform multicultural audiences about Nielsen’s role in television ratings. The campaign will focus on key media outlets in the metropolitan Detroit area, along with other media markets across the country. Nielsen has partnered with ad agency Burrell to create and execute the campaign. It includes print, radio, online and cinema advertising, targeting Asian, African-American, Arabic and Hispanic consumers and opinion leaders.

As part of the campaign, Nielsen will roll out print ads featuring the faces of adults of various ages and ethnicities merged together, to illustrate the company’s inclusive research methods. The print ad copy is translated in Chinese, Spanish and English for respective audiences and will run in ethnic weeklies in and national publications that reach ethnic opinion leaders. The radio ads will run on top-rated African-American and Hispanic (Spanish- and English-language) stations. The campaign also includes on-screen advertising in multicultural movie theaters.

Acquisitions/transactions

Reston, Va.-based comScore Networks has acquired SurveySite, Inc., a Toronto research firm. The SurveySite organization will operate as a division of comScore Networks under the name comScore SurveySite. Jeff Hohner, president of SurveySite, has assumed the position of president, comScore SurveySite.

New York information firm Factiva has acquired the business and assets of 2B Reputation Intelligence Limited and Benchmarking Solutions Limited, a London-based technology and consulting business specializing in media monitoring and reputation management.

Paris-based research firm Ipsos has acquired two marketing research companies in North America: Montreal-based Descarie & Complices, a firm specializing in advertising and market research in Quebec’s Francophone sector, and Shifrin Research Inc., a New York research company. Descarie & Complices, which will operate as Ipsos Descarie, has 25 full-time employees and generated revenues of CAN $3.6 million in 2004. Shifrin Research Inc., which will operate as Ipsos Shifrin, has 21 full-time employees and had revenues of $8.6 million in 2004.

Research firm Greenfield Online, Inc., Wilton, Conn., has completed the acquisition of Zing Wireless, Inc. (goZing), a privately held Encino, Calif., corporation, for approximately $30 million in cash, subject to certain post-closing adjustments. Simultaneous with the closing, goZing’s three executive officers as a group purchased 195,650 shares of Greenfield Online common stock for $18.40 per share in a private placement.

The acquisition of goZing, a provider of survey sample solutions, expands the Greenfield Online panel to 4.7 million double opt-in survey takers, representing households containing approximately 12.2 million people, plus an additional 3.6 million single opt-in registrants the firm intends to convert to double opt-in panelists. The goZing acquisition increases Greenfield Online’s international panel by approximately 50 percent.

GoZing was founded in 1999. The company has 41 employees, substantially all of which are based in Encino. For the year 2004, the company recorded revenue of approximately $13 million, 80 percent of which was attributable to survey sample solutions. Approximately 10 percent of its 2004 revenue was associated with panel recruitment services for marketing research firms. The remaining 10 percent of revenue was achieved through the goZing cellular reseller business. This portion of the business is not complementary to Greenfield Online’s current business model and was discontinued. GoZing recorded 2004 operating income of approximately $2.5 million. The goZing client base more than doubled in 2004 to 97 clients. GoZing’s three senior executives will join Greenfield Online in senior management roles. Matthew Dusig, goZing’s president, has been named senior vice president corporate strategy for Greenfield Online. Gregg Lavin, goZing’s CEO, has been named Greenfield Online’s senior vice president online marketing. GoZing COO Lance Suder has been named Greenfield Online’s senior vice president West Coast operations.

Separately, Greenfield Online, Inc. has completed the acquisition of Rapidata.net, Inc., a privately-held North Carolina corporation, for $5.5 million in cash, subject to certain post-closing adjustments. Simultaneous with the closing, Rapidata’s two executive officers (who together owned a majority of Rapidata stock) each purchased 16,225 shares of Greenfield Online common stock for $18.49 per share in a private placement. Rapidata’s panel includes practicing physicians across all major specialties, hospital, retail and managed care pharmacists and formulary decision makers, nurses and nurse practitioners, as well as dentists.

Germany-based GfK Group has increased its shareholding in U.S.-based e-commerce and database marketing specialists Caribou Lake Software, to 69.8 percent. This makes GfK the majority shareholder in the company in which it had already acquired a 19.9 percent holding in 2001. Caribou Lake Software supplies technical advisory services for e-commerce solutions in the business-to-business and business-to-consumer markets. It has 20 employees. In 2004, the company recorded total sales of around $4 million.

Alliances/strategic partnerships

Seattle research firm NetReflector and Quaero, a Charlotte, N.C., marketing consulting firm, have formed a strategic partnership involving the integration of NetReflector’s customer satisfaction and loyalty measurement capabilities into Quaero SpringBoard’s hosted relationship marketing service. Quaero and NetReflector have joined forces to optimize marketing through customer satisfaction measurement capabilities for their mutual clients.

Association/organization news

The appointment of Debrah Harding to the new dual role of director, policy and communication, and deputy director general at Britain’s Market Research Society (MRS) is part of a wider move to establish clearly differentiated identities and branding for MRS as a professional membership association led by Harding, and for the separate business division led by its managing director, Peter Greenwood.

In late 2004, the commercial publishing and events operations of MRS were brought together under the Research brand, serving a much wider customer base beyond the MRS membership. The Research brand encompasses the industry magazine, directory, conferences and awards dinner.

In April 2005, MRS will launch a re-branding of the membership association (including a new logo), and will also launch the new MRS company partner service.

Harding will have direct responsibility for industry and professional standards, professional development, external representation of market research, legislation and regulatory matters, public affairs and media relations, as well as overseeing policy on membership services and communications.

Véronique Jeannin has been appointed as the new director general of ESOMAR. Jeannin started her professional career as an international law consultant in 1981. Since 1985, she has been engaged in a number of international marketing and multicultural management functions in companies in Paris, London and Geneva, focusing on various markets. In 2000, she became the international marketing director for Eden Springs Europe, based in Lausanne, Switzerland, which, since 2003 has been known as Danone Springs of Eden.

Separately, ESOMAR has launched the Excellence Award for Standards of Performance, to be known as the John Downham Award. The award aims to recognize outstanding achievements in market, opinion and social research and to stimulate excellence in research standards at an international level. In making the award, ESOMAR wants to signal the importance of rigorous standards of research and to encourage the wider application of standards for the enhancement of the profession’s reputation worldwide.

The award is named in honor of John Downham, who has been a key figure over many years in helping ESOMAR develop international codes and guidelines for the industry worldwide. Initiatives can include but are not limited to innovative or rigorous approaches that encourage or broaden the application of standards and add credibility to the profession. The award can be won by an individual or organization, whether or not they are a member of ESOMAR. Nominations must be made by an ESOMAR member and members are free to nominate themselves or their colleagues. Current ESOMAR council members are not eligible for the award.

The award will be given on the basis of a written submission of up to 750 words, describing why the person or organization deserves the award. The submission must clearly articulate how the initiative or achievements created a successful outcome and a positive impact on the profession.

The award carries a prize of EUR 10,000 and is sponsored by ESOMAR. The winner of the 2005 award will be announced at ESOMAR’s annual congress in Cannes in September, where the award will also be presented.

Awards/rankings

Walker Information, Indianapolis, and one of its clients, Microsoft Business Solutions, have been selected as recipients of the first annual CRM WizKids Award, which was issued by Beagle Research Group. Beagle Research awarded WizKids Awards to 11 vendors and their customers for their advancement of customer relationship management. Walker Information enabled Microsoft Business Solutions to gather, analyze and distribute critical customer feedback.

New accounts/projects

The National Center for Missing Adults (NCMA) is using Braintree, Mass.-based Perseus Development Corporation’s SurveySolutions Enterprise to collect feedback from families of missing persons to gauge the Center’s performance associated with the handling of their missing persons case. The NCMA has an average of 1,200 active missing person cases ongoing each year. The use of Perseus SurveySolutions Enterprise is helping to fulfill a mandate: since receiving its designation from the U.S. Department of Justice to serve as a national clearinghouse for missing adults, the NCMA is required to conduct feedback surveys and report the results.

The California Tree Fruit Agreement of Reedley, Calif., has renewed its contract with Hoffman Estates, Ill.-based FreshLook Marketing Group, a supplier of marketing research information to the perishables industry, and will continue to rely on FreshLook to provide distribution, sales and pricing information on fresh peaches, plums and nectarines.

Food retailer Safeway has selected the DemandTec Price and DemandTec Promotion applications of San Carlos, Calif.-based DemandTec for its consumer demand management program.

New companies/new divisions/ relocations/expansions

Cincinnati-based Directions Research Inc. has opened an office in Alexandria, Minn., which will be staffed by Dennis Murphy, the newly named vice president of the technology practice. Murphy recently retired from IBM.

Melbourne, Australia-based research firm Insight Marketing Systems has opened a new office in London and named Jonathan Rabson European director to head up the London office.

Scottsdale, Ariz., research firm In-Stat has established a branch of its research practice in mainland China. In-Stat’s presence in China is an extension of a joint venture announced by Reed Business Information, In-Stat’s parent company and International Data Group (IDG), early in 2004. Through its affiliation with the alliance, which is overseen by Hugo Shong, president and CEO of IDG Asia/China, In-Stat will have access to a network of information and people.

A new data processing and analysis firm, Stadisticus, has opened at Calle 34an # 3cn - 22, Cali - Valle, Colombia. Ilan Lechter is president. Jon Geiler Ordoñez is manager. Phone 057-680-1120. Fax 057-680-2011. Web www.stadisticus.com.

A new research and consulting firm, Observant LLC, has opened at 277 Linden St., Suite 207, Wellesley, Mass., 02482. Phone 781-239-1102. E-mail info@observant.biz. Web www.observant.biz. Rich Durante and Mike Feehan are co-presidents.

L&E Research Incorporated has moved to new and expanded facilities at 5505 Creedmoor Road, Suite 200, Raleigh, N.C., 27612. Phone 919-782-3860. Fax 919-787-3428.

Company earnings reports

Paris-based Ipsos generated consolidated revenues of EUR 605.6 million in full-year 2004, up 6.3 percent relative to 2003. Exchange rate effects dragged growth down by 3.8 percent, while changes in the scope of consolidation boosted growth by 2.6 percent. At constant scope and exchange rates, Ipsos’ revenues came in up 7.5 percent relative to 2003.

At Greenfield Online, Inc., Wilton, Conn., net revenue for the fourth quarter ended December 31, 2004 was $13.6 million, a 64 percent increase compared to $8.3 million for the fourth quarter ended December 31, 2003. Revenue for the 12 months ended December 31, 2004 was $44.4 million, a 72 percent increase compared to $25.9 million for the 12 months ended December 31, 2003.

Gross profit for the fourth quarter ended December 31, 2004 was $10.0 million, or 74 percent of revenue, and increased 83 percent compared to $5.5 million, or 66 percent of revenue, in the same period a year ago. Gross profit for the 12 months ended December 31, 2004 was $33.3 million, or 75 percent of revenue, and increased 96 percent compared to $17.0 million, or 66 percent of revenue in the same period a year ago.

Operating income for the fourth quarter ended December 31, 2004 increased to $2.5 million from $0.6 million in the same period a year ago. Operating income for the 12 months ended December 31, 2004 increased to $7.2 million from $1.7 million for the same period a year ago.

Net income for the fourth quarter of 2004 increased to $2.4 million compared to $0.4 million for the fourth quarter of 2003. Net income for the 12 months ended December 31, 2004 increased to $5.7 million compared to $1.6 million in the same period a year ago.
Adjusted EBITDA, a non-GAAP financial measure, for the fourth quarter ended December 31, 2004 increased 134 percent to $3.4 million compared to $1.4 million in the same period a year ago. Adjusted EBITDA for the 12 months ended December 31, 2004 increased 135 percent to $10.3 million compared to $4.4 million for the same period a year ago.

Harris Interactive, Rochester, N.Y., released its financial results for the second quarter of fiscal 2005. Revenue, which includes $13.9 million from Wirthlin and $1.1 million from Novatris, was $54.4 million for the quarter, up 51 percent compared with $36.1 million of revenue for the same period a year ago. Organic revenue, not including revenue from Novatris (acquired in March 2004) and Wirthlin (acquired in September 2004), was $39.4 million, up 9 percent from last year. Global Internet revenue, including $1.1 million from Wirthlin and $1.0 million from Novatris, was $25.9 million, up 29 percent from the $20.0 million of Internet revenue reported for the same period a year ago. U.S. Internet revenue, including $1.1 million from Wirthlin, increased 22 percent to $23.1 million. For the quarter, Internet revenue comprised 48 percent of global revenue, and 59 percent of the U.S. revenue. The impact of foreign currency fluctuations added $0.7 million to revenue this quarter.

Operating income for the quarter was $2.3 million, which includes $1.2 million from Wirthlin and zero income from Novatris, compared with operating income of $3.1 million reported last year. The company recorded a one-time cost of $0.8 million to reflect payment obligations to Gordon S. Black, former chairman of Harris Interactive, under the terms of his employment agreement which expired December 31, 2004. Net income for the quarter was $1.4 million, including one-time after-tax costs of $0.5 million for Black’s severance. Earnings per share for the quarter were $0.02 per fully diluted share, including $0.01 of one-time costs for Black, compared with $2.2 million, or $0.04 per share, reported in the second quarter of fiscal 2004.

Sales bookings, which do not include Wirthlin, set a new record of $46.3 million, up 16 percent from last year’s pace.

In fiscal year-to-date results, revenue for the six-month period ended December 31, 2004, was $95.2 million, up 37 percent from $69.4 million reported last year. Six-month organic revenue, which excludes $16.4 million from Wirthlin and $2.2 million from Novatris, was $76.6 million, an increase of 10 percent from a year ago.

For the six months ended December 31, 2004, global Internet revenue, including $1.1 million for Wirthlin and $1.9 million from Novatris, was $50.1 million, up 32 percent from $37.9 million for the same period a year ago.

Operating income for the six-month period ended December 31, 2004 decreased 2 percent to $4.9 million, which includes $0.8 million of one-time costs discussed above as well as income of $1.4 million from Wirthlin and $0.2 million from Novatris, compared with operating income of $5.0 million for the same period a year ago. Net income for the six months ended December 31, 2004 was $3.1 million, or $0.05 per fully diluted share, which includes one-time after-tax costs of $0.5 million, or $0.01 per share, for Black, compared to net income of $3.5 million, or $0.06 per fully diluted share, for the same period a year ago.