Question-and-Answer Session
Operator
(Operator instructions). Your first question comes from Brian Pitz of Bank of America Securities. Please proceed.
Brian Fitzgerald – Bank of America Securities
Hi! Thanks guys. Brian Fitzgerald here. I have a question. You didn’t see weakness in the overall economy. You cited a couple of verticals. What about international versus domestic – any weakness going on there? Any plans for international expansion in terms of products, services, or big clients.
Michael Rubin
Sure. I think really the strength for the business is really throughout all three business units, and that was both within the marketing service business both the domestic and the international business there as well. So we really feel good about the business really in all areas. As it relates to expanding partners, certainly we’ve already taken some of our US partners internationally. We are also working on taking some of our international partners to the US, so I think you’ll continue to see great cross-selling across the businesses. One example that Mike actually used was Major League Baseball which has been a long-time GSI partner, became an e-Dialog partner during the first quarter. So overall I think I’d sum it up and say really strength in all areas of the business. We didn’t see slowdown anywhere, and again I think we are going to see a lot of cross selling opportunities amongst the businesses as well.
Brian Fitzgerald – Bank of America Securities
Great! Thanks.
Operator
Your next question comes from Christa Quarles from Thomas Weisel Partners.
Christa Quarles - Thomas Weisel Partners
Hi Mike. I was wondering if you could be a little more specific on what the contribution was specifically from e-Dialog and what you would expect it to contribute in Q2 given the partial quarter in Q1, and then a second question just on acquisitions. In the marketing services space, are you still looking again both in the US and internationally what’s the climate for acquisitions currently given the weakening environment? Thanks.
Michael Conn
Sure. I will hit the e-Dialog contribution and let Michael touch on just M&A thoughts overall. As we have said it’s our intention not to be breaking up the specific companies that operate. E-Dialog did close earlier than we expected and that did give us somewhat of a bump in Q1. In general, they performed quite well relative to their plan in the quarter. GSI without the contribution from e-Dialog still would have exceeded the high end of our guidance range, so they contributed, but they weren’t really the driver of what got us over the hump. I wouldn’t break out their specific contribution by quarter going forward, but as we mentioned in the past, it is less of a seasonal business, although the fourth quarter is still their largest quarter, but much less seasonal than GSI overall. They do have positive EBITDA every quarter, so hopefully that gives you a little bit of direction.
- To read the full transcript on Seeking Alpha, click here »




