Acxiom reports record annual results.

CONWAY, Ark.--(BUSINESS WIRE)--April 30, 1997--Acxiom Corporation (Nasdaq: ACXM) reported record revenue and earnings today for the fourth quarter and fiscal year ended March 31, 1997.

Consolidated revenues for the year ended March 31, 1997 were $402,016,000, up 49% over the $269,902,000 reported for 1996. Net earnings were $27,512,000 ($.47 per share), up 51% from the earnings in the previous year of $18,223,000 ($.35 per share).

For the fourth quarter ended March 31, 1997, consolidated revenues were $105,982,000, up 38% from the same quarter a year ago. Net earnings for the quarter were $8,141,000 ($.14 per share), an increase of 56% compared to earnings in the previous year's fourth quarter of $5,203,000 ($ .10 per share). All per-share amounts are adjusted for a 2-for-1 stock split which was effective November 11, 1996.

"We had another outstanding year and achieved several important milestones," said Charles D. Morgan, Acxiom's Chairman. "We made significant progress on our data content and data delivery strategy including two acquisitions early in the year and several data distribution alliances with important partners throughout the year."

Data Distribution Alliances

Oracle Corporation announced an agreement with Acxiom to provide data content for its new Data Mart Suites products on March 31, 1997. For companies that want to build a customer-focused, decision-support data mart, Acxiom will be a strategic partner to provide external consumer support data such as age, income level, occupation, marital status, etc., to enhance the Oracle database. During the fiscal year Acxiom also completed data distribution and/or other cooperative marketing agreements with IBM, Red Brick Systems, Inc., Informix Software, Inc., Arbor Software Corporation, AppSource Corporation, Business Objects, Inc., Microstrategy, Inc. and Trajecta, Inc. Revenues from these and other similar relationships are expected to grow strongly over the next few years.

Growth -- Across the Board

"We grew 29% internally this year in addition to $55 million in growth from acquisitions," Morgan continued. "Our internal growth was driven by a number of new customers as well as several new agreements with existing customers."

During the quarter Acxiom successfully completed the first two development phases associated with the Trans Union Corporation Marketing Services agreement. Also during the quarter Acxiom and Trans Union renegotiated the deliverables for the next phase, and extended both the Marketing Services and Data Center Management agreements for an additional three years. "These extensions reflect the continuing and growing partnership between Trans Union and Acxiom," said Ralph Sorice, Executive Vice President, Trans Union.

Revenues from Trans Union now exceed $50 million per year and with continued future growth, Acxiom projects that the Trans Union contract extensions will result in over $200 million added to its contractual revenue backlog.

Recently acquired customers for which revenue increased substantially during the year include America On-Line, The Bank of New York, Bell Atlantic Communications, Inc., Blockbuster Entertainment, Inc., Britannia Building Society, Brunswick Corporation, Capital One Services, Conde Nast Publications, Dell Products L.P., First USA Bank, IBM, NOVUS Services, Inc., NUMA Corporation, PNC Bank, N.A., Phillips Publishing International, Inc., The Polk Company, Sam's Wholesale Club, Transamerica Financial Services, and Wal-Mart Stores, Inc.

Realignment 

Acxiom recently completed an organizational realignment into four operating divisions supported by a small corporate office. "We have realigned Acxiom effective April 1, 1997, to structure ourselves for continued growth," Mr. Morgan continued. "I believe our new divisional structure can support Acxiom's growth to a $2-$3 billion corporation."

The four divisions include three in the U.S. and one international division. The Acxiom International Division is based in London, England, led by Jerry C.D. Ellis, with seven years of Acxiom experience. This division maintains small offices in the Netherlands and Malaysia in addition to major facilities in London and Sunderland, England. "Acxiom International intends to expand both through acquisitions and through internal growth in Europe, the Asia Pacific region and other areas of the world," said Ellis. Revenues from Acxiom International in fiscal 1997 were $28 million, a 60% increase over the previous year.

The three U.S.-based divisions are the Acxiom Data Products Division, the Acxiom Services Division and the Acxiom Alliances Division. The Data Products Division is led by C. Alex Dietz, with over 25 years of experience at Acxiom. Included in the Acxiom Data Products Division are Direct Media, Greenwich, CT; Data Quick, La Jolla, CA; Pro CD, Danvers, MA; and InfoBase, Conway, AR. The Data Products Division contributed $116 million in revenue during fiscal 1997 and grew 110% over the previous year. "Our vision is to be the recognized data content leader for both consumer and business data," said Dietz. "We also plan to build a world-class data repository and leading edge data delivery systems to distribute our data content."

The Acxiom Alliances Division is led by James T. Womble, with 23 years experience at Acxiom. Included in the Alliances Division are the outsourcing relationships with Trans Union, Polk, Guideposts, ADP and M/A/R/C, along with the Financial Services industry business units. The Alliances Division contributed $129 million in revenue in fiscal 1997 and grew 43% over the previous year. "We see significant opportunity to grow our existing strategic relationships," said Womble. "And we continue to find opportunities to build new alliances that create win/win partnerships for both Acxiom and our customers."

The Acxiom Services Division is led by Paul L. Zaffaroni, with over eight years of Acxiom experience. The Services Division consists of most of the Company's traditional computer processing services customers including Allstate, Citibank, IBM, and the Insurance, Telecommunications, Publishing, Retail, High Tech and Utilities industry customers. The Services Division contributed $129 million in revenue in fiscal 1997, a 23% increase over the previous year. "Our vision is to be the premier service provider of data, data integration and data warehousing solutions to the Fortune 500," said Zaffaroni.

Acxiom provides a wide spectrum of data products, data integration services, and mailing list services, as well as data warehousing and decision support services to major firms in the United States and United Kingdom. Founded in 1969, Acxiom is headquartered in Conway, Arkansas, with operations throughout the United States and the United Kingdom.

This press release contains forward looking statements that involve risks and uncertanties, including statements about future revenue growth. Actual results could differ, based upon market conditions and other risks detailed from time to time in the Company's SEC filings. -0-

                 Acxiom Corporation and Subsidiaries
                 Consolidated Statements of Earnings
                           (Unaudited)

                               For the Three Months Ended
                                       March 31,
                             -----------------------------
                                 1997             1996
                             -----------------------------

Revenue                      $105,982,000     $ 77,029,000
Operating costs and expenses:
Salaries and benefits          39,293,000       26,794,000
Computer, communications and
 other equipment               13,574,000       13,009,000
Data costs                     21,710,000       17,020,000
Other operating costs and
 expenses                      17,094,000       10,939,000
                               ----------       ----------
Total operating costs and
 expenses                      91,671,000       67,762,000
                               ----------       ----------
Income from operations         14,311,000        9,267,000
                               ----------       ----------

Other income (expense):
Interest expense               (1,406,000)        (686,000)
Other, net                       (364,000)        (173,000)
                               -----------      -----------
                               (1,770,000)        (859,000)
                               -----------      -----------
Earnings before income
 taxes                         12,541,000        8,408,000

Income taxes                    4,400,000        3,205,000
                               ----------       ----------
Net earnings                    8,141,000        5,203,000
                               ==========       ==========
Earnings per share                   0.14             0.10
                               ==========       ==========

Weighted average shares
 outstanding                   59,540,000       52,334,000


                              For the Twelve Months Ended
                                      March 31,
                                 1997             1996
Revenue                      $402,016,000     $269,902,000
Operating costs and expenses:
Salaries and benefits         145,038,000       98,075,000
Computer, communications and
 other equipment               58,552,000       40,972,000
Data costs                     76,282,000       63,442,000
Other operating costs and
 expenses                      70,431,000       35,755,000
Total operating costs and
 expenses                     350,303,000      238,244,000
Income from operations         51,713,000       31,658,000

Other income (expense):
Interest expense               (3,903,000)      (1,863,000)
Other, net                     (3,772,000)        (399,000)
                               -----------      -----------
                               (7,675,000)      (2,262,000)
Earnings before income
 taxes                         44,038,000       29,396,000
Income taxes                   16,526,000       11,173,000
Net earnings                   27,512,000       18,223,000
Earnings per share                   0.47             0.35
Weighted average shares
 outstanding                   59,143,000       52,078,000

CONTACT: Acxiom Corporation, Conway

Robert S. Bloom, 501/336-1321