Acxiom Announces Second Quarter Fiscal Year 2010 Results.

Sequential Improvement in All Industry Groups

LITTLE ROCK, Ark. -- Acxiom([R]) Corporation (Nasdaq: ACXM), a global leader in interactive marketing, today announced financial results for the second quarter of fiscal year 2010 ended September 30, 2009. Acxiom will hold a conference call at 4:30 p.m. CDT today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com.

John Meyer, Acxiom's chief executive officer and president, said, "The September quarter was another challenging period for us versus the prior-year quarter, but we are beginning to see signs of progress in the business. Our revenue and operating income results improved in the September quarter over the June quarter. In addition, several of our clients have indicated to us that they expect to increase their marketing spending during the second half of our fiscal year. This anticipated increase in client spending coupled with our continued emphasis on expense management gives us confidence that our second half operating income performance will improve over the first half of the fiscal year."

Second Quarter 2010 Highlights:

* Earnings per diluted share of $0.12 in the second quarter of fiscal 2010, compared to earnings per diluted share of $0.18 in the second quarter of fiscal 2009, before the effect of unusual gain items. GAAP diluted earnings per share in the prior-year period were $0.20, which included $0.02 in unusual gain items.

* Income from operations of $21.2 million in the current year second quarter, compared to income from operations of $31.9 million in the second quarter last year, before the effect of unusual items. The prior year GAAP income from operations was $34.3 million, which included unusual gain items of $2.4 million.

* Revenue of $271.1 million in the current quarter, compared to $307.4 million, excluding an Information Products pass-through contract, in the second quarter a year ago. GAAP revenue in the prior period was $328.9 million, which included pass-through revenue from the Information Products contract of approximately $21.5 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.

* Operating cash flow of $60.7 million compared to $86.8 million in the second quarter a year ago.

* Free cash flow available to equity of $29.4 million, compared to $71.6 million in the second quarter a year ago. The prior-year amount included $24.2 million of proceeds received from the sale of company-owned real estate. Free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.

Operational Highlights:

* Information Services: Revenue for the quarter was $210.2 million, compared to $233.6 million in the second quarter of the previous year. Income from operations for the quarter was $20.0 million, compared to $28.5 million in the second quarter of fiscal 2009.

* Information Products: Revenue for the quarter was $60.9 million, compared with $73.8 million, excluding the pass-through revenue from the Information Products contract referenced above, in the second quarter a year ago. GAAP revenue in the prior period was $95.3 million, which included revenue from the Information Products pass-through contract of approximately $21.5 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract. Income from operations for the quarter was $1.2 million, compared to income from operations of $3.4 million in the second quarter of the previous year.

Income from operations includes expenses that had previously been included in corporate and other expenses. The Company now allocates selling, general and administrative expenses previously included in corporate and other expenses to the two operating segments, Information Services and Information Products. Prior-year results have been reclassified to reflect the change.

Fiscal Year 2010 Year-To-Date Highlights:

* Earnings per diluted share of $0.17 for the current year six-month period compared to earnings per diluted share of $0.31 in the comparable six-month period last year, before the effect of unusual gain items. GAAP diluted earnings per share for the six-month period of fiscal 2009 were $0.34 which included $0.03 in unusual gain items.

* Income from operations of $33.7 million for the first six months of fiscal year 2010, compared to $56.9 million, before unusual gain items in the comparable six-month period of fiscal 2009. GAAP income from operations for the prior year of $59.9 million included $2.9 million of unusual gain items.

* Revenue of $527.1 million in the current six-month period, compared to $616.2 million, excluding an Information Products pass-through contract, in the first half of fiscal 2009. GAAP revenue in the prior period was $660.0 million, which included pass-through revenue from the Information Products contract of approximately $43.8 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.

* Operating cash flow of $76.9 million in the current fiscal year six-month period compared to $115.3 million in the prior year six-month period.

* Free cash flow available to equity of $16.3 million for the six months ended September 30, 2009. For the six-month period ended September 30, 2008 free cash flow available to equity was $62.0 million. The prior-year amount included $26.8 million of unusual and one-time items, including $24.2 million in proceeds received from the sale of company-owned real estate. Free cash flow available to equity is a non-GAAP financial measure; reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.

Web Link to Financials

You may link to http://www.acxiom.com/FY10_Q2_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

A global leader in interactive marketing services and infrastructure management, Acxiom connects clients with their customers through deep customer insight, powering effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration and consulting solutions for effective marketing across digital, Internet, email, mobile and direct mail channels. Our secure, high-performance technology services deliver consistent value and reliability. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, and serves clients around the world from locations in the United States, Europe and Asia-Pacific. For more information about Acxiom, visit www.acxiom.com.

Forward Looking Statements

This release and today's conference call may contain forward-looking statements including, without limitation, statements regarding the anticipated increase in client spending during the second half of our fiscal year. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce the amount of business they do 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 may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates to other organizations; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our 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 the historical seasonality of our business may change; the possibility that we will not be able to achieve cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual report on Form 10-K, particularly the discussion under the caption "Item 1A, RISK FACTORS" in our Annual Report on Form 10-K for the year ended March 31, 2009, which was filed with the Securities and Exchange Commission on May 29, 2009.

With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.

We undertake no obligation to update the information contained in this press release or any other forward-looking statement.

Acxiom is a registered trademark of Acxiom Corporation.

http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6085660&lang=en

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
						For the Three Months Ended
						September 30,
										$		%
						2009		2008		Variance		Variance
Revenue:
Services					210,213			233,605			(23,392	)		(10.0	%)
Products					60,892			95,330			(34,438	)		(36.1	%)
Total revenue					271,105			328,935			(57,830	)		(17.6	%)
Operating costs and expenses:
Cost of revenue
Services					165,792			180,986			15,194			8.4	%
Products					46,129			77,038			30,909			40.1	%
Total cost of revenue				211,921			258,024			46,103			17.9	%
Services gross margin				21.1	%		22.5	%
Products gross margin				24.2	%		19.2	%
Total gross margin				21.8	%		21.6	%
Selling, general and administrative		37,964			38,988			1,024			2.6	%
Gains, losses and other items, net			(27	)		(2,370	)		(2,343	)		(98.9	%)
Total operating costs and expenses		249,858			294,642			44,784			15.2	%
Income from operations				21,247			34,293			(13,046	)		(38.0	%)
Other income (expense):
Interest expense				(5,423	)		(8,591	)		3,168			36.9	%
Other, net					223			287			(64	)		(22.3	%)
Total other income (expense)			(5,200	)		(8,304	)		3,104			37.4	%
Earnings before income taxes			16,047			25,989			(9,942	)		(38.3	%)
Income taxes					6,602			10,136			3,534			34.9	%
Net earnings					9,445			15,853			(6,408	)		(40.4	%)
Earnings per share:
Basic						0.12			0.20			(0.08	)		(40.0	%)
Diluted					0.12			0.20			(0.08	)		(40.0	%)

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
						For the Six Months Ended
						September 30,
										$		%
						2009		2008		Variance		Variance
Revenue:
Services					409,539			470,300			(60,761	)		(12.9	%)
Products					117,547			189,708			(72,161	)		(38.0	%)
Total revenue					527,086			660,008			(132,922	)		(20.1	%)
Operating costs and expenses:
Cost of revenue
Services					325,368			359,847			34,479			9.6	%
Products					92,048			154,755			62,707			40.5	%
Total cost of revenue				417,416			514,602			97,186			18.9	%
Services gross margin				20.6	%		23.5	%
Products gross margin				21.7	%		18.4	%
Total gross margin				20.8	%		22.0	%
Selling, general and administrative		75,607			88,470			12,863			14.5	%
Gains, losses and other items, net			320			(2,915	)		(3,235	)		(111.0	%)
Total operating costs and expenses		493,343			600,157			106,814			17.8	%
Income from operations				33,743			59,851			(26,108	)		(43.6	%)
Other income (expense):
Interest expense				(10,928	)		(18,050	)		7,122			39.5	%
Other, net					105			1,646			(1,541	)		(93.6	%)
Total other income (expense)			(10,823	)		(16,404	)		5,581			34.0	%
Earnings before income taxes			22,920			43,447			(20,527	)		(47.2	%)
Income taxes					9,281			16,944			7,663			45.2	%
Net earnings					13,639			26,503			(12,864	)		(48.5	%)
Earnings per share:
Basic						0.17			0.34			(0.17	)		(50.0	%)
Diluted					0.17			0.34			(0.17	)		(50.0	%)

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
						For the Three Months Ended
						September 30,		September 30,
						2009		2008
Basic earnings per share:
Numerator - net earnings			9,445		15,853
Denominator - weighted-average shares outstanding		78,915		77,716
Basic earnings per share			0.12		0.20
Diluted earnings per share:
Numerator - net earnings			9,445		15,853
Denominator - weighted-average shares outstanding		78,915		77,716
Dilutive effect of common stock options, warrants and restricted stock		464		447
						79,379		78,163
Diluted earnings per share			0.12		0.20

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
						For the Six Months Ended
						September 30,		September 30,
						2009		2008
Basic earnings per share:
Numerator - net earnings			13,639		26,503
Denominator - weighted-average shares outstanding		78,791		77,559
Basic earnings per share			0.17		0.34
Diluted earnings per share:
Numerator - net earnings			13,639		26,503
Denominator - weighted-average shares outstanding		78,791		77,559
Dilutive effect of common stock options, warrants and restricted stock		404		400
						79,195		77,959
Diluted earnings per share			0.17		0.34

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
					For the Three Months Ended
					September 30,		September 30,
Revenue:				2009		2008
Information services			210,213			233,605
Information products			60,892			95,330
Total revenue				271,105			328,935
Income from operations:
Information services			19,971			28,527
Information products			1,249			3,396
Other					27			2,370
Total income from operations		21,247			34,293
Margin:
Information services			9.5	%		12.2	%
Information products			2.1	%		3.6	%
Total margin				7.8	%		10.4	%

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
					For the Six Months Ended
					September 30,		September 30,
Revenue:				2009		2008
Information services			409,539			470,300
Information products			117,547			189,708
Total revenue				527,086			660,008
Income from operations:
Information services			35,809			54,166
Information products			(1,746	)		2,770
Other					(320	)		2,915
Total income from operations		33,743			59,851
Margin:
Information services			8.7	%		11.5	%
Information products			-1.5	%		1.5	%
Total margin				6.4	%		9.1	%

ACXIOM CORPORATION AND SUBSIDIARIES
PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
				For the Three Months Ended
				September 30,		September 30,		$		%
				2009		2008		Variance		Variance
Products				60,892			73,782			(12,890	)		(17.5	%)
Passthrough data			-			21,548			(21,548	)		(100.0	%)
Total products revenue		60,892			95,330			(34,438	)		(36.1	%)
Cost of products revenue:
Products			46,129			55,490			9,361			16.9	%
Passthrough data		-			21,548			21,548			100.0	%
Total cost of products		46,129			77,038			30,909			40.1	%
Margin:
Products				24.2	%		24.8	%
Passthrough data			-			0.0	%
Total products			24.2	%		19.2	%

ACXIOM CORPORATION AND SUBSIDIARIES
PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
				For the Six Months Ended
				September 30,		September 30,		$		%
				2009		2008		Variance		Variance
Products				117,547			145,946			(28,399	)		(19.5	%)
Passthrough data			-			43,762			(43,762	)		(100.0	%)
Total products revenue		117,547			189,708			(72,161	)		(38.0	%)
Cost of products revenue:
Products			92,048			110,993			18,945			17.1	%
Passthrough data		-			43,762			43,762			100.0	%
Total cost of products		92,048			154,755			62,707			40.5	%
Margin:
Products				21.7	%		23.9	%
Passthrough data			-			0.0	%
Total products			21.7	%		18.4	%

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
		September 30,		March 31,		$		%
		2009		2009		Variance		Variance
Assets
Current assets:
Cash and cash equivalents		167,634			177,166			(9,532	)		(5.4	%)
Trade accounts receivable, net		182,612			184,814			(2,202	)		(1.2	%)
Refundable income taxes		-			4,579			(4,579	)		(100.0	%)
Deferred income taxes		45,503			45,641			(138	)		(0.3	%)
Other current assets		52,002			46,873			5,129			10.9	%
Total current assets		447,751			459,073			(11,322	)		(2.5	%)
Property and equipment		778,697			745,999			32,698			4.4	%
Less - accumulated depreciation and amortization		559,891			531,410			28,481			5.4	%
Property and equipment, net		218,806			214,589			4,217			2.0	%
Software, net of accumulated amortization		45,819			52,798			(6,979	)		(13.2	%)
Goodwill		470,621			454,944			15,677			3.4	%
Purchased software licenses, net of accumulated amortization		55,564			65,341			(9,777	)		(15.0	%)
Deferred costs, net		64,699			70,343			(5,644	)		(8.0	%)
Data acquisition costs		26,624			31,317			(4,693	)		(15.0	%)
Other assets, net		17,578			18,938			(1,360	)		(7.2	%)
		1,347,462			1,367,343			(19,881	)		(1.5	%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		43,636			40,967			2,669			6.5	%
Trade accounts payable		32,242			27,701			4,541			16.4	%
Accrued payroll and related expenses		24,379			44,823			(20,444	)		(45.6	%)
Other accrued expenses		85,713			86,072			(359	)		(0.4	%)
Deferred revenue		50,118			54,991			(4,873	)		(8.9	%)
Income taxes		171			-			171			-
Total current liabilities		236,259			254,554			(18,295	)		(7.2	%)
Long-term debt		490,608			537,272			(46,664	)		(8.7	%)
Deferred income taxes		65,586			58,526			7,060			12.1	%
Other liabilities		9,156			9,321			(165	)		(1.8	%)
Stockholders' equity:
Common stock		11,620			11,576			44			0.4	%
Additional paid-in capital		807,251			800,094			7,157			0.9	%
Retained earnings		455,589			441,950			13,639			3.1	%
Accumulated other comprehensive income		9,994			(6,238	)		16,232			(260.2	%)
Treasury stock, at cost		(738,601	)		(739,712	)		1,111			(0.2	%)
Total stockholders' equity		545,853			507,670			38,183			7.5	%
		1,347,462			1,367,343			(19,881	)		(1.5	%)

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
		For the Three Months Ended
		September 30,
		2009		2008
Cash flows from operating activities:
Net earnings		9,445			15,853
Non-cash operating activities:
Depreciation and amortization		41,147			50,727
Loss on disposal or impairment of assets, net		9			(1,131	)
Deferred income taxes		6,223			5,138
Non-cash stock compensation expense		3,261			3,628
Changes in operating assets and liabilities:
Accounts receivable		2,526			4,923
Other assets		(1,190	)		11,439
Deferred costs		(2,438	)		(1,452	)
Accounts payable and other liabilities		6,911			3,968
Deferred revenue		(5,191	)		(6,290	)
Net cash provided by operating activities		60,703			86,803
Cash flows from investing activities:
Sale of assets		-			24,174
Capitalized software		(2,431	)		(4,118	)
Capital expenditures		(14,462	)		(7,245	)
Data acquisition costs		(3,004	)		(6,507	)
Payments received from investments		-			102
Net cash paid in acquisitions		357			(12,668	)
Net cash used by investing activities		(19,540	)		(6,262	)
Cash flows from financing activities:
Payments of debt		(41,402	)		(36,197	)
Dividends paid		-			(4,662	)
Sale of common stock		236			2,641
Tax benefit of stock options exercised		-			55
Net cash used by financing activities		(41,166	)		(38,163	)
Effect of exchange rate changes on cash		(33	)		(807	)
Net increase (decrease) in cash and cash equivalents		(36	)		41,571
Cash and cash equivalents at beginning of period		167,670			51,799
Cash and cash equivalents at end of period		167,634			93,370
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		5,328			7,067
Income taxes		792			(5,929	)
Payments on capital leases and installment payment arrangements		7,504			11,204
Payments on software and data license liabilities		1,840			8,420
Other debt payments, excluding line of credit		2,058			2,073
Prepayment of debt		30,000			14,500
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease and installment payment arrangements		6,564			3,835
Software licenses and maintenance acquired under software obligation		611			1,546

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
		For the Six Months Ended
		September 30,
		2009		2008
Cash flows from operating activities:
Net earnings		13,639			26,503
Non-cash operating activities:
Depreciation and amortization		81,742			104,620
Loss on disposal or impairment of assets, net		7			(3,242	)
Deferred income taxes		8,719			7,853
Non-cash stock compensation expense		5,650			6,232
Changes in operating assets and liabilities:
Accounts receivable		(1,809	)		(11,335	)
Other assets		3,461			20,815
Deferred costs		(3,344	)		(2,068	)
Accounts payable and other liabilities		(25,105	)		(27,328	)
Deferred revenue		(6,091	)		(6,774	)
Net cash provided by operating activities		76,869			115,276
Cash flows from investing activities:
Sale of assets		-			24,174
Capitalized software		(4,815	)		(9,129	)
Capital expenditures		(21,893	)		(12,951	)
Cash collected from sale and license of software		-			2,000
Data acquisition costs		(8,781	)		(15,129	)
Payments received from investments		-			2,596
Net cash paid in acquisitions		357			(12,703	)
Net cash used by investing activities		(35,132	)		(21,142	)
Cash flows from financing activities:
Payments of debt		(55,126	)		(59,501	)
Dividends paid		-			(9,312	)
Sale of common stock		2,663			5,915
Tax benefit of stock options exercised		-			115
Acquisition of treasury stock		(307	)		-
Net cash used by financing activities		(52,770	)		(62,783	)
Effect of exchange rate changes on cash		1,501			(642	)
Net increase (decrease) in cash and cash equivalents		(9,532	)		30,709
Cash and cash equivalents at beginning of period		177,166			62,661
Cash and cash equivalents at end of period		167,634			93,370
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		10,586			16,421
Income taxes		(4,260	)		(5,887	)
Payments on capital leases and installment payment arrangements		15,298			24,083
Payments on software and data license liabilities		5,718			16,788
Other debt payments, excluding line of credit		4,110			4,130
Prepayment of debt		30,000			14,500
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease and installment payment arrangements		10,387			5,659
Software licenses and maintenance acquired under software obligation		611			1,546

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
			06/30/08		09/30/08		12/31/08		03/31/09		FY2009		06/30/09		09/30/09		FY2010
Net cash provided by operating activities		28,473			86,803			78,913			74,652			268,841			16,166			60,703			76,869
Plus:
	Sale of assets		-			24,174			-			-			24,174			-			-			-
	Payments received from investments		2,494			102			-			3			2,599			-			-			-
	Disposition of operations		-			-			-			-			-			-			-			-
Less:
	Capitalized software		(5,011	)		(4,118	)		(3,872	)		(3,238	)		(16,239	)		(2,384	)		(2,431	)		(4,815	)
	Capital expenditures		(5,706	)		(7,245	)		(6,232	)		(12,266	)		(31,449	)		(7,431	)		(14,462	)		(21,893	)
	Data acquisition costs		(8,622	)		(6,507	)		(7,825	)		(7,607	)		(30,561	)		(5,777	)		(3,004	)		(8,781	)
	Payments on capital leases and installment payment arrangements		(12,879	)		(11,204	)		(9,033	)		(7,673	)		(40,789	)		(7,794	)		(7,504	)		(15,298	)
	Payments on software and data license liabilities		(8,368	)		(8,420	)		(3,099	)		(3,330	)		(23,217	)		(3,878	)		(1,840	)		(5,718	)
	Other required debt payments		(2,057	)		(2,073	)		(2,061	)		(2,073	)		(8,264	)		(2,052	)		(2,058	)		(4,110	)
Subtotal		(11,676	)		71,512			46,791			38,468			145,095			(13,150	)		29,404			16,254
Plus:
	Tax benefit of stock options and warrants		60			55			-			(81	)		34			-			-			-
Subtotal		(11,616	)		71,567			46,791			38,387			145,129			(13,150	)		29,404			16,254
Plus:
	Cash collected from sale of software		2,000			-			-			-			2,000			-			-			-
Total		(9,616	)		71,567			46,791			38,387			147,129			(13,150	)		29,404			16,254

	ACXIOM CORPORATION AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF OPERATIONS
	(Unaudited)
	(Dollars in thousands, except earnings per share)
																			Q2 FY09 to Q2 FY10
			06/30/08		09/30/08		12/31/08		03/31/09		FY2009		06/30/09		09/30/09		FY2010		%		$
Revenue:
	Services		236,695			233,605			231,077			218,885			920,262			199,326			210,213			409,539			-10.0	%		(23,392	)
	Products		94,378			95,330			89,979			76,624			356,311			56,655			60,892			117,547			-36.1	%		(34,438	)
	Total revenue		331,073			328,935			321,056			295,509			1,276,573			255,981			271,105			527,086			-17.6	%		(57,830	)
Operating costs and expenses:
	Cost of revenue
	Services		178,861			180,986			173,433			161,060			694,340			159,576			165,792			325,368			8.4	%		15,194
	Products		77,717			77,038			70,487			55,604			280,846			45,919			46,129			92,048			40.1	%		30,909
	Total cost of revenue		256,578			258,024			243,920			216,664			975,186			205,495			211,921			417,416			17.9	%		46,103
	Selling, general and administrative		49,482			38,988			42,560			38,930			169,960			37,643			37,964			75,607			2.6	%		1,024
	Gains, losses and other items, net		(545	)		(2,370	)		43,175			(1,694	)		38,566			347			(27	)		320			-98.9	%		(2,343	)
	Total operating costs and expenses		305,515			294,642			329,655			253,900			1,183,712			243,485			249,858			493,343			15.2	%		44,784
	Income (loss) from operations		25,558			34,293			(8,599	)		41,609			92,861			12,496			21,247			33,743			-38.0	%		(13,046	)
	% Margin		7.7	%		10.4	%		-2.7	%		14.1	%		7.3	%		4.9	%		7.8	%		6.4	%
	Other income (expense)
	Interest expense		(9,459	)		(8,591	)		(8,105	)		(6,441	)		(32,596	)		(5,505	)		(5,423	)		(10,928	)		36.9	%		3,168
	Other, net		1,359			287			140			163			1,949			(118	)		223			105			-22.3	%		(64	)
	Total other income (expense)		(8,100	)		(8,304	)		(7,965	)		(6,278	)		(30,647	)		(5,623	)		(5,200	)		(10,823	)		37.4	%		3,104
	Earnings (loss) before income taxes		17,458			25,989			(16,564	)		35,331			62,214			6,873			16,047			22,920			-38.3	%		(9,942	)
	Income taxes		6,808			10,136			(5,115	)		12,881			24,710			2,679			6,602			9,281			34.9	%		3,534
	Net earnings (loss)		10,650			15,853			(11,449	)		22,450			37,504			4,194			9,445			13,639			-40.4	%		(6,408	)
	Diluted earnings (loss) per share		0.14			0.20			(0.15	)		0.29			0.48			0.05			0.12			0.17			-40.0	%		(0.08	)

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																			Q2 FY09 to Q2 FY10
			06/30/08		09/30/08		12/31/08		03/31/09		FY2009		06/30/09		09/30/09		FY2010		%		$
Revenue:
	Services		236,695			233,605			231,077			218,885			920,262			199,326			210,213			409,539			-10.0	%		(23,392	)
	Products		94,378			95,330			89,979			76,624			356,311			56,655			60,892			117,547			-36.1	%		(34,438	)
	Total revenue		331,073			328,935			321,056			295,509			1,276,573			255,981			271,105			527,086			-17.6	%		(57,830	)
Income from operations:
	Services		25,639			28,527			30,358			32,873			117,397			15,838			19,971			35,809			-30.0	%		(8,556	)
	Products		(626	)		3,396			4,218			7,042			14,030			(2,995	)		1,249			(1,746	)		-63.2	%		(2,147	)
	Other		545			2,370			(43,175	)		1,694			(38,566	)		(347	)		27			(320	)		-98.9	%		(2,343	)
	Total income (loss) from operations		25,558			34,293			(8,599	)		41,609			92,861			12,496			21,247			33,743			-38.0	%		(13,046	)
Margin:
	Services		10.8	%		12.2	%		13.1	%		15.0	%		12.8	%		7.9	%		9.5	%		8.7	%
	Products		-0.7	%		3.6	%		4.7	%		9.2	%		3.9	%		-5.3	%		2.1	%		-1.5	%
	Total		7.7	%		10.4	%		-2.7	%		14.1	%		7.3	%		4.9	%		7.8	%		6.4	%