Acxiom Announces Record First Quarter Revenue and Earnings Results.Business Editors LITTLE ROCK, Ark.--(BUSINESS WIRE)--July 26, 2000 Acxiom Acxiom is a customer and data information management company, offering a range of products and services including information technology outsourcing. It has been described as "one of the biggest companies you've never heard of. (R) Corporation (Nasdaq:ACXM), the leader in customer data integration supporting customer relationship management, today reported it achieved record revenue and earnings for the first quarter of fiscal 2001 ended June June: see month. 30, 2000. Highlights from the quarter included: -- AbiliTec(SM) momentum continued in the marketplace as several leading companies endorsed and made the decision to adopt the technology in the quarter. -- Several Acxiom business partners adopted the technology as a core element of their customer relationship management solutions. These include Oracle, Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. , Hewlett Hewlett may refer to: People with the surname Hewlett:
Packard, and Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Integrated Business Solutions. -- Several major corporations also made the decision to adopt the AbiliTec technology and to implement it within their own IT infrastructure to enable their Customer Relationship Management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) applications to achieve a single view of their customers. These include Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. , Bank One, Schering For the American pharmaceutical company created by seizure of assets from Schering AG during World War II, see . Schering AG was a research-centered pharmaceutical company founded in 1851 that merged with Bayer in December 2006. Plough plough: see plow. , Guideposts Guideposts is a Christian-faith based non-profit organization founded in 1945 by Dr. Norman Vincent Peale and his wife, Ruth Stafford Peale. The Guideposts organization is headquartered in Carmel, New York, with additional offices in New York City, Chesterton, Indiana, and Pawling, and First USA. -- The U.S. Patent & Trademark Office awarded a patent for AbiliTec, underscoring the uniqueness and significance of this customer data integration technology. -- Record first quarter revenue and earnings were achieved. -- Revenue increased 26% on continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , excluding the impact of DataQuick and Direct Media, which have been divested. -- Revenue increased 36% for the quarter after further adjusting revenues for the impact of lower revenue contributions from two customers: Waste Management, whose contract terminated July July: see month. 1, 1999 and Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. , whose revenues have declined due to lower volumes and reduced pricing. -- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the first quarter was $73.7 million, representing a growth rate of 50%. AbiliTec Update "As I meet with more and more customers and prospects, it becomes ever more clear to me that AbiliTec is recognized as the missing linch-pin for strategic CRM solutions," said Acxiom Company Leader Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by D. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. . "Acxiom is continuing to make substantial progress towards making AbiliTec an industry standard for real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. , multi-channel See multichannel. customer data integration." Freddie Mac vice president of strategic information services See Information Systems. Michael Bradley Michael or Mike Bradley may refer to:
Contraction of we have. we've have tested AbiliTec and are impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: with its superior address management capabilities. In addition, we believe AbiliTec's technology will offer tremendous savings in processing time and storage requirements. As the mortgage finance industry's technology leader, Freddie Mac looks forward to working with Acxiom to determine how we can best leverage AbiliTec as we continue to serve our customers and the nation's homebuyers." Rocco Martino Rocco Martino (born September 20, 1938) is an Italian secret agent. He was born in Tropea, province of Catanzaro. He played a major role in the fabrication and the dissemination of the Yellowcake Forgery, when he approached CIA Rome station chief Jeffrey W. of Guideposts said, "AbiliTec will also help Guideposts maintain a single view of the customer in the CRM arena as some of our business migrates from direct marketing to e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. . Customers entering the online Guideposts community can be quickly identified as current or new customers. The real-time integration of data using AbiliTec from the internet activity, the legacy systems, and the marketing database will give Guideposts a true single view of the customer." Acxiom continues to develop relationships with other companies that will incorporate AbiliTec into their products and services. Today, Acxiom announced a strategic alliance with Lockheed “Lockheed” redirects here. For the character in Marvel Comics, see Lockheed (comics). For the current company, see . Lockheed Corporation (originally Loughead Aircraft Manufacturing Company) was an American aerospace company originally founded in 1912 Martin's IBS IBS Irritable bowel syndrome, see there company to offer AbiliTec as part of Lockheed Martin's customer relationship management eBusiness See e-business. solutions. "Acxiom's AbiliTec makes personal, bulletproof Refers to extremely stable hardware and/or software that cannot be brought down no matter what unusual conditions arise. See industrial strength. bulletproof - Used of an algorithm or implementation considered extremely robust; lossage-resistant; capable of correctly customer relationship management a virtual certainty," said Lockheed Martin IBS President Gary P. Mann in a separate news release issued today regarding the company's alliance with Acxiom. On May 24, Oracle announced AbiliTec would be a core element of its Oracle Customer Loyalty real-time CRM solution. On June 19, Hewlett-Packard announced the technology would be used in its E-VUE CRM solution. These followed an April 18 announcement that Acxiom has become a Siebel "Premier Content Partner" with AbiliTec serving as the customer data integration technology. Record Revenues and Earnings Revenues for the first quarter ended June 30, were $245.6 million, up 16% from revenues of $211.5 million for the same quarter a year ago. Excluding the impact of Direct Media, in which a majority interest was sold in the prior fiscal year and DataQuick, which was sold April 27, 2000 first quarter revenues grew 26% over the prior year. Income from operations was $36.3 million, an increase of 20% compared to income from operations of $30.2 million in the previous year's first quarter. Net earnings for the quarter were $24.4 million ($.26 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 ) compared to $15.7 million ($.18 diluted earnings per share) in the previous year's first quarter, an increase of 55%. Included in the first quarter results were several items reflecting gains, losses and non-recurring items of $3.1 million along with a further gain of $6.2 million resulting from the sale of an investment which is included in other income. The $3.1 million reflects a gain on the sale of DataQuick, losses from the sale of our CIMS CIMS Courant Institute of Mathematical Sciences (New York University) CIMS Center for Integrated Manufacturing Studies (Rochester Institute of Technology) CIMS Chemical Ionization Mass Spectrometry business unit (previously acquired from Deluxe de·luxe also de luxe adj. Particularly elegant and luxurious; sumptuous: deluxe accommodations; a de luxe automobile. adv. Corp.) and the sale of the remainder of Direct Media, a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of campaign management software, and a reserve established for incentive accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. . The $6.2 million reflects a gain on the sale of Acxiom's Ceres investment. Excluding the impact of the net gains of $9.3 million discussed above, EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the quarter was $.20. Acxiom reported revenue for the first quarter for each of its business segments. The Services segment reported revenues of $176.4 million for the quarter up 21% over the prior year. Excluding the impact of the Allstate contract and Direct Media, the Services segment grew 36% for the quarter. The Data Products segment reported revenues of $25.6 million for the quarter which was down 20% from the prior year, due primarily to the sale of DataQuick. The Information Technology Management segment reported revenues of $57.5 million for the quarter, up 27% over the prior year. Excluding the impact of the Waste Management contract, the increase was 54%. Patent Issued for AbiliTec Acxiom was notified during the quarter that it had received a patent for AbiliTec from the U.S. Patent & Trademark Office. "We weren't surprised, because we believe that AbiliTec is one of a kind," Morgan said. "We know of nothing like it anywhere, and we believe AbiliTec will become the customer data integration standard. The AbiliTec patent underscores Acxiom's determination to maintain its leadership role in providing new standards for speed and accuracy in managing customer information." Acxiom Recognition Continues Other events during the quarter reflected Acxiom's role as an industry leader: -- Acxiom's industry leadership was demonstrated by the appointment of Acxiom Company Leader Charles D. Morgan as the chairman of the Direct Marketing Association Board of Directors. -- Following back-to-back years being on Fortune's list of 100 Best Places to Work, Acxiom was listed by Computerworld magazine as one of the "Top 100 Best Places to Work in Information Technology." -- Acxiom is continuing with its first-ever nationwide corporate branding campaign with advertisements placed in national business publications. The campaign is designed to increase the awareness of Acxiom and AbiliTec among senior executives. Acxiom and AbiliTec have recently received positive news coverage in the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times, Investor's Business Daily Investor's Business Daily (IBD) is a national newspaper in the United States, published Monday through Friday, that covers international business, finance, and the global economy. Founded in 1984 by William O'Neil, its headquarters are in Los Angeles, California. and other publications, with a focus on the growing need for real-time customer data integration. First Quarter Conference Call to be Conducted on July 27, 2000 Acxiom's Leadership will hold its fiscal 2001 first quarter conference call on July 27, 2000, beginning at 9 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT . We invite you to listen to the call. The conference call will be broadcast via the Internet at www.vcall.com. About Acxiom Acxiom, a global leader in real-time, multi-channel Customer Data Integration, enables businesses to develop and deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. customer relationships by instantly creating a single, accurate view of their customers across the enterprise. Acxiom achieves this by providing data integration technology, database management services, and premier data content through its AbiliTec(SM), Solvitur(R), and InfoBase(TM) products, while also offering a broad range of 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 services. Founded in 1969, Acxiom (Nasdaq:ACXM) is based in Little Rock, Arkansas Little Rock, Arkansas required military intervention to desegregate schools (1957–1958). [Am. Hist.: Van Doren, 556–557] See : Bigotry , with locations throughout the U.S., and with operations in the United Kingdom, France, Spain and Australia. Acxiom revenues were $998.5 million for the twelve months ended June 30, 2000. For more information, please visit www.acxiom.com. This press release contains the following 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. : (1) that AbiliTec will be a revolutionary customer data integration technology that will successfully support the creation of a real-time, single, accurate, comprehensive and enhanced view of a customer across a business' enterprise; (2) that major companies will continue to include AbiliTec in their strategic enterprise-wide CRM planning (3) that the inclusion of AbiliTec in the strategic CRM planning of major companies will lead to demand for Acxiom's services and products; (4) that Acxiom is in an ideal position for continued, sustainable and profitable growth; (5) that Acxiom will continue to be able to sign long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , multi-million dollar contracts with blue chip companies; (6) that Acxiom is ideally situated to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the potential of AbliTec in the coming years; (7) that as a result of the sale of the described businesses and investments the company will be better positioned to converge con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. around providing technology, products and services in support of customer relationship management; (8) that the company will be able to continue to build the sales momentum in its core businesses; (9) that AbiliTec will accelerate the sales momentum; (10) that AbiliTec will continue to achieve customer acceptance in the marketplace; (11) that AbiliTec will be perceived and realized as a technology capable of allowing its users to better serve consumer privacy and preference interests; (12) that the company will be able to continue to develop relationships with other companies that will be able to successfully incorporate AbiliTec into their products and services in a manner that will yield benefits to Acxiom; (13) that the company will be able to reach contractual terms A contractual term is "[a]ny provision forming part of a contract"[1] Each term gives rise to a contractual obligation, breach of which will can give rise to litigation. with customers who have decided to adopt the company's solutions and products. The following are important factors that could cause actual results to differ materially from these forward looking statements: With regard to all statements concerning AbiliTec: the complexity and uncertainty regarding the development of new high technologies; the loss of market share through competition or the acceptance of these or other company offerings on a less rapid basis than expected; changes in the length of sales cycles due to the nature of AbiliTec being an enterprise-wide solution; the introduction of competent, competitive products or technologies by other companies; changes in the consumer and/or business information industries and markets; the company's ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; the impact of changing legislative, regulatory and consumer environments in the geography in which AbiliTec will be deployed. With regard to the statements that generally relate to the business of the company: all of the above factors; the possibility that economic or other conditions might lead to a reduction in demand for the company's products and services; the continued ability to attract and retain qualified technical and leadership associates and the possible loss of associates to other organizations; the ability to properly motivate the sales force and other associates of the company; the ability to achieve cost reductions; changes in the legislative, regulatory and consumer environments affecting the company's business including but not limited to legislation, regulations and customs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's ability to collect, manage, aggregate and use data; data suppliers might withdraw data from the company, leading to the company's inability to provide certain products and services; short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. contracts affect the predictability of the company's revenues; the potential 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; postal rate increases that could lead to reduced volumes of business; customers that may cancel or modify their agreements with the company. With specific reference to all statements that relate to the providing of products or services outside the company's primary base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army in 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. : all of the above factors and the difficulty of doing business in numerous sovereign jurisdictions due to differences in culture, laws and regulations. Other factors are detailed from time to time in the company's periodic reports and registration statements filed with the United States Securities and Exchange Commission. Acxiom believes that it has 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. The company undertakes no obligation to publicly release any revision to any forward-looking statement to reflect any future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Three Months Ended
June 30,
--------------------
2000 1999
-------- --------
Revenue 245,557 211,506
Operating costs and expenses:
Salaries and benefits 91,248 83,709
Computer, communications and
other equipment 42,074 34,174
Data costs 25,675 25,116
Other operating costs and expenses 53,338 38,261
Gains, losses and nonrecurring items (3,064) --
-------- --------
Total operating costs and expenses 209,271 181,260
-------- --------
Income from operations 36,286 30,246
-------- --------
Other income (expense):
Interest expense (5,469) (5,819)
Other, net 8,895 769
-------- --------
3,426 (5,050)
-------- --------
Earnings before income taxes 39,712 25,196
Income taxes 15,289 9,447
-------- --------
Net earnings 24,423 15,749
======== ========
Earnings per share:
Basic 0.28 0.19
======== ========
Diluted 0.26 0.18
======== ========
ACXIOM CORPORATION AND SUBSIDIARIES
REVENUES BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
June 30,
--------------------
2000 1999
-------- --------
Services 176,394 146,161
Data 25,582 32,056
I. T. Management 57,469 45,338
Intercompany eliminations (13,888) (12,049)
-------- --------
Total Revenue 245,557 211,506
======== ========
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
June 30, March 31,
2000 2000
----------- -----------
Assets
------
Current assets:
Cash and cash equivalents $ 5,003 $ 23,924
Trade accounts receivable, net 195,378 198,818
Deferred income taxes 18,432 18,432
Other current assets 123,392 98,872
----------- -----------
Total current assets 342,205 340,046
----------- -----------
Property and equipment 395,665 376,459
Less - Accumulated depreciation
and amortization 157,349 126,783
----------- -----------
Property and equipment, net 238,316 249,676
----------- -----------
Software, net of accumulated
amortization 55,214 58,964
Excess of cost over fair value of
net assets acquired 161,827 145,082
Other assets 325,620 311,528
----------- -----------
$ 1,123,182 $ 1,105,296
=========== ===========
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Current installments of long-term debt 23,122 23,156
Trade accounts payable 30,109 54,016
Accrued merger and integration costs 1,111 15,106
Accrued payroll and related expenses 15,965 26,483
Other accrued expenses 42,240 31,779
Deferred revenue 6,842 19,995
Income taxes 23,302 9,473
----------- -----------
Total current liabilities 142,691 180,008
----------- -----------
Long-term debt, excluding current
installments 322,767 289,234
Deferred income taxes 48,324 48,324
Stockholders' equity:
Common stock 8,846 8,831
Additional paid-in capital 323,914 325,729
Retained earnings 281,799 257,376
Accumulated other comprehensive
income (loss) (2,422) (1,448)
Treasury stock, at cost (2,737) (2,758)
----------- -----------
Total stockholders' equity 609,400 587,730
----------- -----------
Commitments and contingencies
$ 1,123,182 $ 1,105,296
=========== ===========
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
June 30,
2000 1999
-------- --------
Cash flows from operating activities:
Net earnings $ 24,423 15,749
Non-cash operating activities:
Depreciation and amortization 28,521 18,266
Loss (gain) on disposal of assets (16,828) 34
Provision for returns and doubtful
accounts 610 288
Changes in operating assets and
liabilities:
Accounts receivable (78) (29,822)
Other assets (26,622) 9,669
Accounts payable and other
liabilities (35,909) (38,713)
Merger and integration costs (13,995) (583)
-------- --------
Net cash used by operating
activities (39,878) (25,112)
-------- --------
Cash flows from investing activities:
Disposition of assets 34,121 783
Development of software (10,224) (12,777)
Capital expenditures (15,898) (35,645)
Investments in joint ventures (4,315) (1,130)
Net cash paid in acquisitions (14,133) (15,330)
-------- --------
Net cash used by investing activities (10,449) (64,099)
-------- --------
Cash flows from financing activities:
Proceeds from debt 36,402 75,149
Payments of debt (3,101) (7,234)
Sale of common stock 4,340 9,143
Acquisition of Treasury Stock (6,119) --
-------- --------
Net cash provided by financing activities 31,522 77,058
-------- --------
Effect of exchange rate changes on cash (116) (58)
-------- --------
Net decrease in cash and cash
equivalents (18,921) (12,211)
Cash and cash equivalents at beginning
of period 23,924 12,604
-------- --------
Cash and cash equivalents at end of period $ 5,003 393
======== ========
Supplemental cash flow information: Cash
paid during the period for:
Interest $ 4,767 12,405
Income taxes 1,513 1,382
======== ========
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