“Meanwhile, we experienced some challenges in our other processing segment, Litigation Support Services. Revenues for this segment increased by 3% during the second quarter, including 6% growth in our e-discovery business. However, given the current pipeline of new business, we believe we will see stronger second-half revenue from our e-discovery segment given new matters we have recently won. In fact, within the past 90 days, we have added three new clients that are S&P 100 companies. We are pleased that we continue to add very large and important companies as new clients, and we are optimistic about the revenue potential of those clients as they start to ramp over the next year,” Dolan said.
“Within our Business Information Division, we continue to see benefits from the good work by our management team. Although revenue for the segment was down 3% in the second quarter, we saw higher margins, lower operating costs, and overall operating income improvement of 31%. The division has centralized some of its operations and implemented work-sharing arrangements in which our local companies support each other more actively to achieve real savings,” Dolan said. He noted that public notice advertising revenue increased modestly during the quarter, which is the first year-over-year growth the company had seen in this revenue category in seven quarters.
“Due primarily to purchase accounting adjustments related to previous acquisitions, in the second quarter, our total operating expense was reduced by $10.4 million on a non-recurring basis, to $52.4 million. Excluding the impact of these adjustments, total operating expenses would have been $62.8 million, down slightly from $63.0 million for the second quarter of last year,” Dolan added.
“Overall, we believe our revenue challenges are short-term in nature and we are focused on finding growth opportunities throughout our businesses while being very mindful of costs. We have taken important steps to position ourselves for a better future in each of our businesses and remain optimistic about a resumption of growth in our default processing business and a re-acceleration of growth in our e-discovery business,” Dolan said.
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