D&B Six Months Results at a Glance  D&B’s EPS earnings increased 17%, marking a 27th consecutive quarter of double-digit earnings growth. Revenue was up by 6%, operating income grew by 10% and on a year-to-date basis the company generated a free cash flow of US$ 203 million. The DNBi Risk Management Platform reached 10,000 installations.  A rollout into Canada will take place this year followed by other international markets in 2008.  Three senior executives with technology sector backgrounds joined the company to hasten the process of turning D&B into a technology based company.  Second Quarter Results: Risk Management Solutions (RMS) revenue of $262.7 million (66% of total) was up 3% before the effect of foreign exchange (up 6 percent after the effect of foreign exchange). Sales & Marketing Solutions revenue of $97.7 million (25%) was up 10% before and up 11 % after the effect of foreign exchange. E-Business Solutions revenue of $26.3 million (7%) was up 22% before and up 23% after the effect of foreign exchange, obviously reflecting the fast growing Hoover business. Supply Management Solutions revenue of $10.1 million (3%), was up 15 percent (both before and after the effect of foreign exchange). International revenue was $105.2 million (27% of total) up a disappointing 2% (before the effect of foreign exchange). D&B’s Operating income for the US business was 96 million up 9%, and $ 24.9 million for D&B International up 5%.  CEO Alesio stressed the need to make acquisitions to turn D&B into a technology-based company and to lift customer spend in RMS.  Alesio stated that he was not satisfied with progress pointing out that at today’s prices it was difficult to make accretive acquisitions. Evaluation of a range of candidates is on-going and D&B was determined to acquire software capability in data integration over time. 
D&B Domestic Versus International
To lift customer spend in Risk Management Solutions a number of new value added DNBi modules are being rolled out to provide increased functionality to customers. For example a Fraud Risk screening tool and Small Risk Insight aimed at customers in the financial services industry. The latter may be D&B’s answer to Experian’s BizSourcesM.  DNBi appears to be a winner having recently crossed the milestone of 10,000 installations in the US. DNBi is scalable to permit layers of additional product innovations to be added over time. DNBi is now being launched in Canada and in other international markets in 2008. Perhaps this may be the much needed salvation to the disappointing results of D&B International. Sticking to fundamentals such as the DUNSRight quality process and the D-U-N­S Number does have its rewards: D&B announced the signing of a five-year contract with the General Services Administration (GSA) at a value of $92 million. D&B’s capabilities are designed to help the US Government provide a higher degree of transparency in federal spending. D&B standards are therefore firmly imbedded in the US Government procurement processes.  Source: Company Press Release

BIIA Newsletter September – 2007 Issue