D&B Q1 Total Revenue Flat: – Revenues for North America Down 2% – International Revenues up 8% (BFX)

Total revenue for the first quarter of 2012 was $402.8 million, flat both before and after the effect of foreign exchange from the prior year similar period(1).  Operating income before non-core gains and charges for the first quarter of 2012 was $106.0 million, up 3% from the prior year similar period, primarily due to reengineering savings(2)

North America: Total revenue for the first quarter of 2012 was $285.5 million, down 2% both before and after the effect of foreign exchange, as compared to the prior year similar period.

Asia Pacific: Core revenue for the first quarter of 2012 was $47.2 million, up 15% before the effect of foreign exchange (up 16% after the effect of foreign exchange), as compared to the prior year similar period.

Europe & Other International Markets: Core and total revenue for the first quarter of 2012 was $57.4 million, up 3% before the effect of foreign exchange (up 2% after the effect of foreign exchange), as compared to the prior year similar period.

China Situation:  D&B announced today complete shutdown of its Roadway consumer direct marketing business.  On March 18, 2012, D&B announced it had temporarily suspended its Shanghai Roadway D&B Marketing Services Co. Ltd. (“Roadway”) operations in China, pending an investigation into allegations that certain data collection practices may have violated local Chinese consumer data privacy laws.   D&B are cooperating with the local Chinese investigation and have voluntarily reported this matter to the Securities and Exchange Commission and the United States Department of Justice and is cooperating with both agencies in the investigation.  D&B will not comment until investigations have been completed.

D&B confirmed that its China commercial credit information business, Huaxia D&B and its B2B Micro Marketing businesses remain operational and are not affected by the shutdown of Roadway.

D&B’s Stock was down 14% by midday Tuesday May 8th, 2012

1 Total revenue for the first quarter of 2012 included the results of the domestic portion of its Japanese operations that was divested during the first quarter of 2012.  Total revenue for the first quarter of 2011 included the results from Purisma, AllBusiness and a small supply management company in North America, as well as its market research business in China and the domestic portion of its Japanese operations that were recently divested.
2 On a GAAP basis, operating income was $74.4 million, down 17% from the prior year similar period, primarily due to impairment charges related to the shutdown of our Shanghai Roadway D&B Marketing Services Co. Ltd. in China.

Source: D&B Press Release

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Cognizant Cuts Full Year Outlook Reflecting Bleak Conditions of BPO Industry

Information technology services provider Cognizant Technology Solutions Corp lowered its forecast for the full year on low demand, echoing the bleak outlook given by most of its rivals. The company said it now expects an adjusted earnings of $3.62 per share on revenue of at least $7.34 billion for 2012 – down from its previous forecast of $3.69 per share in adjusted earnings on revenue of $7.53 billion.

Indian rivals Wipro Ltd and Infosys Ltd forecast muted revenue growths last month, highlighting the turbulence software exporters face due to an uncertain global economy.  However, India’s top software services exporter, Tata Consultancy Services Ltd, said it expects to outperform the sector outlook – an indication that it is poised to gain at the expense of rival Infosys.

In January, market research firm Gartner cut its forecast for worldwide IT spending growth this year to 3.7 percent from 4.6 percent it estimated earlier, citing a faltering global economic growth, the euro zone crisis and the impact of Thailand’s floods on hard-disk drive production.

Source: The Asia Age

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LexisNexis(R) Announces FraudPoint(R) Solutions

LexisNexis(R) Risk Solutions announced the availability of FraudPoint(R) solutions to help lenders and financial service firms prevent fraud by analyzing and predicting behavioral patterns of fraudsters and other suspicious identities. Organizations using FraudPoint will benefit by being able to approve more applications for services while limiting exposure to fraud using advanced scoring methodologies and the industry’s largest compilation of identity information.

FraudPoint Score consists of three new and unique capabilities: three-digit 300-999 Fraud Score, superior fraud segmentation via Fraud Type Indices, and specific Fraud Warning Codes. They allow institutions and fraud investigators to more accurately detect and investigate fraud. In sample validations, FraudPoint Score has been found to identify up to 75 percent of fraudulent applications in less than six percent of a financial institution’s new account originations.

Source: Zecco.com

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Thomson Reuters Offers Extra EU Antitrust Concessions

Thomson Reuters has offered additional concessions to the European Commission to end an antitrust investigation related to codes for financial data, a Commission spokesman said on Friday.

Thomson Reuters submitted some concessions in December last year. But in a market test conducted by the EU watchdog, competitors and trading firms then demanded more.

The Commission has charged Thomson Reuters with blocking competition in the market for financial data with its Reuters Instrument Codes’ system. This identifies stocks, bonds and other financial instruments on systems used by traders around the world.

Source:   Reuters

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LexisNexis(R) Migrates to Next Generation Big Data Processing Platform

LexisNexis Risk Solution offers Insurance Carriers Better, Faster Results and Minimized Premium Leakage

LexisNexis Risk(R) Solutions announced the migration of its insurance solutions to the LexisNexis Big Data processing platform known as HPCC Systems. LexisNexis is leveraging the platform to help insurers assign premium more accurately, better understand their customers and risk throughout the policy lifecycle, and drive a more profitable book of business.

Among the first solutions to migrate to HPCC Systems’ supercomputing platform is C.L.U.E.(R) Auto, the industry standard loss underwriting database for the auto insurance market, representing 99.6 percent industry contribution. C.L.U.E. Auto with HPCC Systems finds claims on more than 64 percent of all inquiries and has a historical consumer dispute rate of less than 0.04 percent, representing results that are superior for the industry.

Source: MarketWatch.com

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RR Donnelley Develops and Deploys New ProteusJet

R. R. Donnelley & Sons Company announced the development and installation of its new proprietary ProteusJet Multiweb platform, which has been installed in two of the company’s direct response production facilities. This next generation piezoelectric 4-color inkjet technology enables direct marketers to use sophisticated 100% customized content and messaging to precisely target consumers for improved ROI.

Increasingly sophisticated data analytics are available to identify direct marketing opportunities. This newest RR Donnelley digital print solution provides an efficient, accurate and compelling medium to allow direct marketers to use those analytics to speak to consumers in the most effective way, based on data-driven business rules.

Source: Whattheythink.com

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ICRA Techno Analytics Picking Up Majority Stake in US Tech Firm

ICRA Techno Analytics Limited (ICTEAS), the Kolkata-headquartered software solutions company promoted by the Indian rating major ICRA Limited, is picking up a majority stake in BPA Technologies, Inc., a California-based global business consulting and software technology services firm with development centres in Chennai and Visakhapatnam, besides a sales and customer service centre in Singapore.  Focused on Enterprise Content Management, Enterprise Portal and Collaboration, BPA offers strategy consulting, implementation and application management services in its areas of specialisation. IMaCS was the sole transaction advisor to ICTEAS on this transaction.

The acquisition of BPA is structured in three tranches over a period of three years. The valuation of BPA would be performance-linked and is estimated at approximately USD 16 million. The turnover of BPA for the year ended December 31, 2011 was about USD 10 million.  

To read the full story click on the attachment:  Press Release (8-5-12) Final

Source:  ICRA Press Release

ICRA is a member of BIIA
Posted in Business Process Outsourcing, Icra Limited, India, Member, Member News, Uncategorized, United States, Users of Information | Tagged , | Leave a comment

Mortgage Fraud also a Troubling Issue in the United Kingdom

Mortgage fraud is not only a troubling issue in the United States, but a major problem in the United Kingdom too, according to data released by Experian. For the fifth consecutive year, the rate of mortgage fraud increased compared to the prior year. In 2011, there was an 8% rise in year-over-year fraudulent mortgage applications in the United Kingdom.  Approximately 34 in every 10,000 mortgage applications were deemed to be fraudulent last year throughout this region, compared to just a 15 to 10,000 ratio seen in 2006.

Source:  iCopyright

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Alibaba Fights Corruption in its e-Commerce Business Taobao

Alibaba Group recently announced that it has launched an investigation into corruption within the company in response to a newspaper story alleging that Alibaba’s C2C e-commerce platform, Taobao.com, was full of corruption.

Alibaba said that it has permanently shut down nine online stores that did business on Taobao.com and turned over several corrupt Taobao employees to the police.  Yang Lei, director of Alibaba Group’s public relations department, said that more employees may be turned in to the authorities if the company’s investigation uncovers further evidence of serious corruption at Taobao.

Alibaba intends to continue its probe in order to maintain a healthy e-commerce environment.  

Source: BrightWire News

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Integrity of Yahoo’s CEO Challenged

Yahoo confirms misleading information on new CEO’s resume.  Yahoo confirmed Thompson’s credentials had been exaggerated in the recent filing with the Securities and Exchange Commission.  The company, which is based in Sunnyvale, California, brushed off the distortion as an “inadvertent error.”

Loeb (Third Point Fund) an investor in Yahoo pounced on the misinformation as a violation of Yahoo’s code of ethics and called for an independent investigation to determine whether Thompson had misled the company’s board about his technology credentials.  He also cited the mix-up as an example of Yahoo’s poor corporate governance.

Source: KATV.com

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Bertelsmann Foundation Releases Blueprint for INCRA – An International Non-Profit Credit Rating Agency

The Bertelsmann Foundation released on April 18th 2012 at its Washington conference a blueprint for a new sovereign debt rating agency called INCRA.

The mission of INCRA as an independent institution is to conduct sovereign-risk assessment, and to raise the quality of sovereign ratings.  The business model for INCRA is to be non-profit and based on investor pays for ratings as opposed to the issuer pays model. 

Funding is to come from a broad coalition of entities including governments, corporations, NGOs, foundations and private donors.  An endowment of US$400 million is the estimated amount needed to establish and maintain INCRA, safeguard its independence, and generate sufficient annual revenue for maintaining operations.

INCRA’s governance structure and operating procedures are to provide transparency and legitimacy.  A supranational “Stakeholder Council” is to ensure independence by serving as a buffer between funders and the operational business.  A “Credit Policy Committee” functions as a quality-control body, ensuring that ratings are grounded in a competent and comprehensive methodology.

INCRA’s financial framework is based on an endowment that provides for sustainability and security. The Bertelsmann Foundation names the G20, which has already addressed the need for reform of credit rating agencies, as one of the best forums for garnering the political will to establish INCRA. The Foundation also calls for corporate players, NGOs and the non-profit sector to commit themselves to playing a more meaningful role, through INCRA, in the global financial sector.

Source: Bertelsmann Foundation:  The complete INCRA blueprint and an executive summary can be found at: www.bfna.org

The Bertelsmann Foundation is the North American arm of the Germany-based Bertelsmann Stiftung, a non-profit organization established in 1977 by Reinhard Mohn, who endowed it with a majority shareholding in Bertelsmann AG.
Bertelsmann has made several attempts in the past to launch a credit rating agency in Europe in competition to the three large rating agencies.  It has always abandoned the idea.  Based on the perceived shortcomings of the traditional rating agencies Bertelsmann is now trying a new approach using its Foundation with a non-profit and investor pays based model.  The ‘deep pocket’ approach may get things started.  Whether the investors will pay business model will succeed is hard to say.  The management consultancy Roland Berger (Germany) is currently trying a similar model in Europe but finds it hard to raise sufficient capital for the idea. 
In the meantime the current market leaders are enjoying renewed growth and high profitability as well as market acceptance, while Egan Jones, a newcomer with an investor pays business model, is sued by the SEC for misleading investors.
Posted in Bertelsmann Stiftung, Egan Jones Rating, Germany, Rating Services, United States, Users of Information | Tagged , , | Leave a comment

SEC Considers Case Against Egan-Jones Rating Agency

An outspoken critic of major credit rating agencies ends up in the dock!  It is lesson for rating agency start-ups who thought to make hay when major rating agencies found themselves in the dock following the sub-prime credit crisis.  The proverb, “Don’t throw bricks when you live in a glass house”, holds also true in this case.

According to the SEC notified Mr Egan about the possible charges through a Wells notice several months ago.  People familiar with the case said the SEC is seeking to ban Mr Egan and the firm from rating asset-backed securities and sovereign debt for two years.  Mr Egan runs one of the only credit rating agencies where investors, not borrowers, pay for ratings.  He has been an outspoken critic of rating groups Moody’s and Standard & Poor’s , saying they face too much of a conflict of interest because groups seeking ratings also pay for them.

Source:  Financial Times

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Death to the Mag-Stripe?

FICO Blog author Doug Clare stated in a recent article that the mag-stripe was expected just to go away, however the mag-stripe has proven to have nine lives, outliving nearly everyone’s forecasts of its demise.  Perhaps with the EMV (Europay, MasterCard and VISA) finally entering rhe U.S. market, perhaps our faithful friend the mag-stripe is now rally entering the twilight years.

Visa announced last August that it would be introducing the EMV standard for payment transaction messaging in the U.S., which will be rolled-out in a series of steps over the next few years. MasterCard, as expected, recently announced that it will also be supporting and enabling the EMV transition.

 To read an excerpt of this article click on the link

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5 Marketing Must-Haves For Today’s Small and Mid-sized Business

Making decisions about marketing investments can be frustrating, because there are so many options available. Which marketing tools are most important?  What tactics will give you the most bang for the buck?

The answer to these questions depends a lot on your situation, your target audience and how they buy; not to mention your relative strengths as a marketer.  But getting to the basics, there are a handful of key tools and marketing activities that every small to medium company should have.  

The author is Ruth P. Stevens, BIIA’s contributing editor on the topic of eMarketing Strategy – To review them click on the link:  5 marketing must haves for SMB
Posted in B2B Marketing, Marketing & Sales Information, Uncategorized, Users of Information, eMarketing Strategy | Tagged , | Leave a comment

Country Risk Climate: Trends to Keep An Eye On

  • Argentina -  troubling tidings for the peso
  • Hungary - Orban keeps tightening his grip
  • Jordan - yet another new Premier and government
  • Latvia - a third investment-grade credit rating.

Other countries listed in the report:  Australia, Bolivia, Greece, Malaysia, Malawi, Romania, South Africa, United States

To read the full report click on the attachment:  Weekly Focus 5-03-12

This report is provided by S.J. Rundt & Associates, Inc., specialists in country risk assessment, consultants to multinational companies & banks, and publishers of Rundt’s World Business Intelligence and The Financial Executive’s Country Risk Alert. To order a subscription or individual issues of these reports, in print or by e-mail, contact S.J. Rundt & Associates, P.O. Box 1572, Montclair, NJ 07042; Telephone: (973) 731-7502, Fax: (973) 731-7503; E-mail: info@rundtsintelligence.com ; Web site: www.rundtsintelligence.com
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Zhejiang Netsun Revenue and Profit Drop

Are China’s e-commerce businesses running out of ‘steam’?  After Alibaba’s reporting declining growth in its paying customer base, Zhejiang Netsun reports a drop in revenues.

Shenzhen-listed online sourcing platform, Zhejiang Netsun released its financial results for 2011. The company reported revenues of US$23 million, down 17% from 2010. Net profit attributable to shareholders in the year was US$5.1 million, a year-on-year drop of 37%. Management of the company attributed the downturn in performance to its chemical trading services, dropped 81% to just US$1.04 million in 2011. Earnings per share in the period were RMB 0.20 (US$0.032).

 The Hangzhou-based company also announced its results for the quarter ended 31st March 2012. Revenues were US$5.7 million – a decrease of 9% compared with the same quarter of 2011. Net profit attributable to shareholders in the period dropped 4.3%, down to US$1.7 million. Earnings per share in the quarter were RMB 0.07 (US$0.011).

Source:  Business Strategies Group Hong Kong

Posted in China, E-Commerce, Online - Media - Buyer - Seller Conduits, Zhejiang Netsun Co. Ltd. | Tagged , | Leave a comment

Testing for B-to-B Marketers: How Hard is It?

B-to-B marketers are often guilty of laziness when it comes to testing.  Well, to call it laziness may not be entirely fair.  It’s a fact that the typical B-to-B campaign targets universes that are too small to support a split test.  If you’re selling specialized machine tools, you’re lucky if you have 10,000 potential customers worldwide. 

I work with a company that offers employee benefits programs, and markets to HR professionals.  We are planning a campaign to take the service into the Boston area, targeting firms with more than 100 employees, which number about 6,000 sites.  At two HR contacts per site, using direct mail, we would have a mail plan of 12,000.  With an estimated response rate of 1%, we’re looking at only 120 inquiries—clearly not enough to conduct a test of the two good offer ideas we are kicking around.  Which is a shame, because we really have no idea which motivational offer is going to work better with this audience.

But in the digital world, B-to-B marketers have a lot more options for testing.  Split tests are easy to set up, and applicable to any communications vehicle that drives a response—whether it be an email, a landing page, a banner ad, Adwords copy, anything, using free tools like Google Website Optimizer or scores of other SaaS or enterprise software tools.

Plus, there are abundant resources out there now to guide and inspire business marketers.  Have a look at Which Test Won, a weekly comparison of two B-to-B live test versions—usually landing pages—where visitors are invited to go with their guts, and pick a winner.  Then, you can view the actual winner and participate in a lively discussion of possible reasons why.  This brilliant site was the brain child of Anne Holland, the founder of Marketing Sherpa. 

So my client would like to conduct an offer test through digital channels, and we are exploring various options.  It’s still not easy with a small prospect universe in a limited geography.  There are not enough targeted banner media available to reach HR professionals in the Boston-only area.  Email to entirely cold prospects is too spammy to generate leads at a reasonable cost—and still doesn’t solve the universe size problem we face with direct mail.   We considered Google AdWords with location targeting, but it’s going to be hard to sell the offer properly within the AdWords copy limits. Not to mention questions about how long it would take to get enough clicks to call the results.  So our search continues, and we’d welcome ideas from BIIA members on this one.

Ruth Stephens is a contributing editor to the BIIA’s website and the BIIA Newsletter.  Ruth’s expertise in customer acquisition and retention derives from a decade and a half of hands-on marketing for both large enterprises and start-up companies.  Ruth is a frequent contributor to a variety of marketing publications and author of Trade Show and Event Marketing and Maximizing Lead Generation: The Complete Guide for B2B Marketers. She teaches marketing to graduate students at Columbia Business School. Ruth serves on the board of the Direct Marketing Club of New York.  She can be reached at: ruth@ruthstevens.com

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United Kingdom Business Information Providers Association (BIPA) Launches Website

Under the banner of facilitating business decisions by protecting access to publicly available data, the newly formed United Kingdom Business Information Providers Association has announced the launch of its website www.bipa.uk.com  

The website will serve to promote the work of the Association, which was formed in March 2011, to facilitate economic growth through the promotion and protection of statutory publicly available data used by Credit Reference Agencies (CRAs) in the UK. This includes information held at Companies House, which plays an essential role in reducing the risk inherent in business transactions by ensuring credit rating assessments are founded upon accurate data relating to the financial position of businesses.

Further, the website will support the Association’s additional objectives of facilitating greater communication and information exchange between both the CRAs themselves and the wider business community and promoting the positive role this exchange can play in promoting responsible business lending.

Site visitors will also be able to access news on submissions the Association has made to Government invitations to participate in pre-legislative discussion on relevant policy issues. This includes the current Department for Business Innovation and Skills (BIS) consultations on ‘Simpler Reporting for the Smallest Businesses’ and ’The Plan for Growth’.

The site also includes background and contact information on BIPA’s founding member CRAs, who (in alphabetical order) are Creditsafe Business Solutions Ltd, Dun & Bradstreet, Equifax, Experian and Graydon UK.

Source:   Business Information Providers Association

The United Kingdom BIPA initiative follows in the footsteps of BIIA who has launched its website www.biia.com in 2005 to provide a neutral open forum for its members to debate and resolve common issues with users, regulators, government and the public information sector; as well as promoting the industry by demonstrating the value of information for users and national economies as a whole.   BIIA wishes BIPA lots of success in its efforts to protect access to public sector information.

 

Posted in BIIA News, Business Information, Information Solutions for SMEs, Public Sector Information, Uncategorized, United Kingdom, Users of Information | Tagged | Leave a comment

Bond Rater Kroll Wants to Beef Up His Debt-Rating Venture with Acquisitions

Jules Kroll says he aims to beef up his debt-ratings venture through acquisitions, part of his bid to take on major rating firms like Standard & Poor’s Ratings Services.

In an interview with the Wall Street Journal, Julius Kroll, CEO of Kroll Bond Rating Agency Inc., said:  “It will take too long” to expand.  The strategy is to be a full-service rating agency and ultimately to be a global rating agency,” Mr. Kroll said the firm is primarily interested in “international” purchases, and plans to start rating European banks and asset-backed deals from the region by late 2013.

Connecticut sold $343 million in GO bonds last week, becoming the first municipal issuer to receive a Kroll bond rating (of AA).   State Treasurer Denise L. Nappier announced that her office sold $555 million of State General Obligation Bonds last week, attracting $1.7 billion in orders from institutional investors. Because demand exceeded the bonds available, the State was able to reduce interest rates in the final pricing, saving $1.35 million over the life of the bonds.

Source:  Kroll Bond Ratings

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