Advanced Marketing Services, the wholesaler, distributor and custom publisher that owns Publishers Group West, had its San Diego offices and corporate headquarters searched by federal agents, who were looking for records relating to the company's advertising services. The search warrant and subpoena seeking records were issued by the U.S. District Court for the Southern District of California.  Company President Michael M. Nicita, commented, 'The company is cooperating fully with the investigation and, based on our own prior review of our advertising services, believes it has not engaged in any wrongdoing.  We are confident that, after reviewing the records, the authorities will reach the same conclusion.'

 

AMS also released its first quarter results, which showed increased sales ($256.6 million vs. $191.9 million), but decreased profits ($1.9 million vs. $2.4 million).  AMS exceeded its sales expectations for the new Harry Potter novel, and sales from PGW, which distributes Viz manga to the book trade, grew from $27.8 million to $29.6 million.