'Cautious clients' impact database giant Harte-Hanks' revenue and profits

LONDON - Global database marketing giant Harte-Hanks yesterday reported a 48 percent decline in first-quarter profit after incurring downsizing charges and 'cautious spending' by clients.

Harte-Hanks's revenues were also down 18.9 percent over the same period a year ago, but the company's earnings beat expectations.

"Our clients in direct marketing remain very cautious in their spending plans and are faced with decreased marketing budgets," chief executive Larry Franklin said in a statement.

Harte-Hanks is quoted on the New York Stock Exchange and has offices in Middlesex in the UK, France, Germany, Ireland, Spain and Belgium as well as Brazil, Australia and the Philippines.

It has partner relationships in India, Singapore, Japan, South Korea, Malaysia, Brunei, New Zealand, Taiwan, and China.

The Harte Hanks' CiTDB global IT decision-makers database is marketed in the UK by Information Arts.

The company earned $7.1 million in the first three months of 2009, compared with $13.6 million in the same period a year earlier. Revenue was $217.7 million, down 19 percent from $268.5 million.

The US-headquartered company incurred $2.8 million in severance charges and $2.6 million in plant consolidation costs. Harte-Hanks closed a Florida production facility and reduced its work force in the first quarter.

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