Acxiom(R) Announces Second-Quarter Results.LITTLE ROCK, Ark. -- Acxiom([R]) Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACXM) today announced financial results for the second quarter of fiscal 2008 ended September 30, 2007. Acxiom will hold a conference call at 4:30 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT today to discuss this information further. Interested parties are invited to the call, which will be broadcast via the Internet at www.acxiom.com. Revenue for the three-month period was $351.0 million, an increase of 0.8 percent over $348.3 million for the comparable prior-year period. Income from operations for the three-month period equaled $20.4 million compared to $41.9 million for the quarter ended September 30, 2006. Earnings of $.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share include the impact of $14.8 million, or 4 cents per diluted share, in unusual expense items net of income tax effect in the quarter as detailed below. For the six-month period ended September 30, 2007, revenue totaled $689.2 million, an increase of 0.6 percent over $685.0 million for the comparable prior-year period. Income from operations for the six-month period was $24.5 million compared to $78.2 million for the six months ended September 30, 2006. The diluted loss per share of $.01 includes the impact of $35.4 million, or 27 cents per diluted share, in unusual expense items net of income tax effect for the six-month period. Charles D. Morgan, Acxiom's company leader and chairman of the board stated, "We are moving forward as an independent, publicly owned Publicly owned can refer to:
Divination (See OMEN.) Porlock a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756] of the recent course of events, the company posted a slight revenue increase for the quarter. In addition, we instituted an expense reduction plan during mid-September and we expect to see the benefit of the plan during the second half of the fiscal year." Details of Acxiom's second-quarter performance include: * Revenue of $351.0 million, up 0.8 percent from $348.3 million in the second quarter a year ago. * Income from operations of $20.4 million, a 51.4 percent decrease compared to $41.9 million in the second quarter last year. * Unusual items that added $14.8 million in expenses in the quarter and $35.4 million for the six-month period. Included were costs related to the terminated transaction with Silver Lake and ValueAct Capital of $2.3 million and $17.4 million, for the current three-month and six-month period, respectively. The transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). were treated as non-deductible for income tax purposes in the first quarter. However, as the transaction was terminated on October 1, these costs were determined to be fully deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). in the second quarter. Unusual items also included $4.9 million in the second quarter and $10.0 million in the six-month period related to the write-off of certain long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. related to amended contracts with certain information technology outsourcing Information Technology Outsoucing or ITO is a company's outsourcing of computer or Internet related work, such as programming, to other companies. It is used in refence to Business Process Outsourcing or BPO, which is the outsourcing of the work that does not require so much clients. Also included were restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , primarily severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments, of $5.3 million and $5.7 million for the quarter and the six-month period, respectively. Finally, a charge of $2.3 million was recorded during the second quarter related to a lease termination payment. These expenses, including income tax effects, reduced second-quarter and year-to-date diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of by $.04 and $.27, respectively. * Diluted earnings per share of $.13, compared to diluted earnings per share of $.25 in the second quarter last year. * Net income of $10.5 million, compared to net earnings of $21.7 million in the second quarter of fiscal 2007. * Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $40.6 million and free cash flow available to equity of negative $11.3 million. The free cash flow available to equity is a non-GAAP financial measure, and reconciliation to the comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure, operating cash flow, is attached to this press release. In fiscal 2008, Acxiom implemented a new organizational alignment with three operating divisions. Organization highlights are as follows: * Services Division: The division develops, sells and delivers industry-tailored solutions globally through the integration of products, services and consulting. Revenue for the quarter was $190.7 million, up 4.4 percent from $182.6 million in the second quarter of the previous fiscal year. For the six-month period ended September 30, 2007, revenue was $372.2 million, a 4.6 percent increase over $355.8 million for the six-month period ended September 30, 2006. * Information Products Division: The division develops and sells all global data products, including InfoBase([R]) and Personicx([R]), as well as fraud and risk mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy products sold in the U.S., including InsightIdentify. It focuses on product development, product lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. management, data content management and innovation. Revenue for the quarter was $108.2 million, a 3.6 percent increase over $104.4 million in the same quarter last year. Revenue for the six-month period ended September 30, 2007 increased 2.5 percent to $204.9 million from $199.9 million in the comparable prior-year period. * Infrastructure Management Division: The division develops and delivers information technology products and services that improve a company's ability to manage its information technology delivery platform with lower costs and higher efficiencies. Such offerings include traditional IT outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and transformational solutions such as the Acxiom data factory. Revenue for the second quarter was $112.9 million, compared to $119.3 million the same quarter last year, a decrease of 5.4 percent. For the six-month period ended September 30, 2007, revenue was $226.4 million, a 5.6 percent decrease in revenue from $239.8 million for the six-month period ended September 30, 2006. Revenue from five large contracts decreased by $12.9 million in the quarter and $25.5 million for the six months. Revenue for all other Infrastructure Management customers increased 8.8 percent for the quarter and 8.3 percent for the six months. Other Second-Quarter Highlights * During the quarter, Acxiom expanded its interactive marketing offerings with the acquisition of New York-based EchoTarget, a leader in dynamic banner retargeting. The company provides customized targeting solutions for online advertisers and publishers, extending Acxiom's personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. expertise across digital channels that already include email, search and website. EchoTarget works with marketers and publishers to identify and target high-value marketing segments based on users' online behaviors. Those users are then targeted through relevant banners on the company's network of websites. * Acxiom was named to the InformationWeek 500 list and ranked No. 117 among the 500 companies listed. For nearly 20 years, InformationWeek has identified and honored the nation's most innovative users of information technology. The list is unique among corporate rankings because it spotlights the power of innovation in information technology, rather than simply identifying the biggest IT spenders. Outlook For the fiscal year ending March 31, 2008, revenue is expected to be flat to up 1 percent compared to fiscal 2007. Earnings per diluted share, before the effect of any unusual gains or losses, is expected to be in the range of $.69 to $.73. Reflecting the $35.4 million of unusual items recorded during the first two quarters of the fiscal year, and including the receipt of the $65 million merger termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. in the third quarter, earnings per diluted share for the fiscal year are expected to be between $.91 and $.95. In previous communications, the Company provided financial guidance under a Financial Road Map. At the present time, the Company no longer intends to update this guidance. As such, previous guidance issued under the Financial Road Map should no longer be relied upon. About Acxiom Corporation Acxiom Corporation (NASDAQ: ACXM; www.acxiom.com) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration (CDI CDI compact disc interactive: a system for storing a mix of software, data, audio, and compressed video for interactive use under processor control ) technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom is headquartered in Little Rock, Ark., with locations throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe, and in Australia, China, and Canada. For more information, visit www.acxiom.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that could cause actual results to differ materially. Such statements may include but are not necessarily limited to the following: that we expect to remain focused on improving operating results, that we expect to see the full impact of expense reductions during the second half of the fiscal year and that we expect revenue and earnings to be within the ranges noted above. The following are important factors, among others, that could cause actual results to differ materially from these forward-looking statements: The possibility that certain contracts may not be closed, or may not be closed within the anticipated time frames; the possibility that clients may attempt to reduce the amount of business they do with the Company; the possibility that in the event of a change of control of the Company that certain of the clients of the Company would invoke To activate a program, routine, function or process. certain provisions in their contracts resulting in a decline in the revenue and profit of the Company; the possibility that certain contracts may not generate the anticipated revenue or profitability; the possibility that negative changes in economic or other conditions might lead to a reduction in demand for our products and services; the possibility of an economic slowdown or that economic conditions in general will not be as expected; the possibility that the historical seasonality of our business may change; the possibility that significant customers may experience extreme, severe economic difficulty; the possibility that the integration of acquired businesses may not be as successful as planned; the possibility that the fair value of certain of our assets may not be equal to the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of those assets now or in future time periods; the possibility that sales cycles may lengthen length·en tr. & intr.v. length·ened, length·en·ing, length·ens To make or become longer. length  en·er n. ; the possibility
that we may not be able to attract and retain qualified technical and
leadership associates, or that we may lose key associates to other
organizations; the possibility that we won't be able to properly
motivate our sales force or other associates; the possibility that we
won't be able to achieve cost reductions and avoid unanticipated
costs; the possibility that we won't be able to continue to receive
credit upon satisfactory terms and conditions; the possibility that
competent, competitive products, technologies or services will be
introduced into the marketplace by other companies; the possibility that
we may be subjected to pricing pressure due to market conditions and/or
competitive products and services; the possibility that there will be
changes in consumer or business information industries and markets that
negatively impact the Company; the possibility that changes in
accounting pronouncements may occur and may impact these projections;
the possibility that we won't be able to protect proprietary
information and technology or to obtain necessary licenses on
commercially reasonable terms; the possibility that we may encounter
difficulties when entering new markets or industries; the possibility
that there will be changes in the legislative, accounting, regulatory
and consumer environments affecting our business, including but not
limited to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.When a person begins a civil lawsuit, the person enters into a process called litigation. , legislation, regulations and customs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our ability to collect, manage, aggregate and use data; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services; the possibility that we may enter into short-term contracts which would affect the predictability of our revenues; the possibility that the amount of ad hoc For this purpose. Meaning "to this" in Latin, it refers to dealing with special situations as they occur rather than functions that are repeated on a regular basis. See ad hoc query and ad hoc mode. , volume-based and project work will not be as expected; the possibility that we may experience a loss of data center capacity or interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. links or power sources; the possibility that we may experience failures or breaches of our network and data security systems, leading to potential adverse publicity, negative customer reaction, or liability to third parties; the possibility that postal rates may increase, thereby leading to reduced volumes of business; the possibility that our clients may cancel or modify their agreements with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that we experience processing errors which result in credits to customers, re-performance of services or payment of damages to customers; the possibility that the services of the United States Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval , their global counterparts and other delivery systems may be disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. ; and the possibility that we may be affected by other competitive factors. Other factors are detailed from time to time in our periodic reports and registration statements filed with the United States Securities and Exchange Commission. We believe that we have the product and technology offerings, facilities, associates and competitive and financial resources for continued business success, but future revenues, costs, margins and profits are all influenced by a number of factors, including those discussed above, all of which are inherently difficult to forecast. We undertake no obligation to update the information contained in this press release or any other forward-looking statement. Acxiom, InfoBase and Personicx are registered trademarks of Acxiom Corporation. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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