Deluxe Income Falls in Quarter

Deluxe Corp. posted net income of $27.8 million for the second quarter, a decrease from in net income of $32.6 million in the prior year.

The direct marketer reported revenue of $332.1 million for the quarter ended June 30, a decrease from $364 million last year.

The St. Paul, MN firm reported that small business services revenue was $15.9 million lower than the previous year. Management attributed this primarily to continued economic softness.

The direct marketer reported that gross margin was 61.8% percent of revenue during the quarter, compared to 62.3% percent in the prior year.

In addition, Deluxe reported that selling, general and administrative expenses decreased $11 million in the quarter compared to last year.

“We had another strong quarter solidly delivering on our financial commitments,” said CEO Lee Schram, in a statement. “We also advanced our transformational strategy with the recently announced acquisition of MerchEngines and execution of a definitive agreement to purchase Aplus.net's shared hosting business.”