Q1 highlighted by revenue growth of 5.6% and operating income growth of 77%
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Investor Relations Coordinator
LITTLE ROCK, Ark. — July 28, 2010 — Acxiom®
Corporation (Nasdaq: ACXM), a global leader in interactive marketing,
today announced financial results for the first quarter of fiscal year
2011 ended June 30, 2010. Acxiom will hold a conference call at 10:00
a.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. The company will reference presentation slides that will be available on the website prior to the call.
John Meyer, Acxiom’s chief executive officer and president, said, “I
am pleased with our performance this quarter. Despite uneven economic
recovery, we recorded solid year-over-year revenue growth of
approximately six percent. The majority of this increased revenue was
converted into operating income, which increased on an annual basis by
almost 77 percent. This increased operating leverage reflects the
actions we undertook over the past two years to improve cost and
performance efficiencies in our business.”
First Quarter 2011 Highlights:
- Revenue increased by 5.6% in the current quarter
ended June 30, 2010 to $270.4 million, compared to $256.0 million for
the quarter ended June 30, 2009.
- Income from operations of $22.1 million in the
current-year first quarter, up 76.7%, compared to income from operations
of $12.5 million in the first quarter of the prior year.
- Earnings per diluted share of $0.12 in the current quarter, compared to earnings per diluted share of $0.05 in the first quarter of fiscal 2010.
- Operating cash flow of $17.0 million compared to $16.2 million in the first quarter a year ago.
- Free cash flow available to equity of negative $6.3
million, compared to negative $13.2 million in the first quarter a year
ago. 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.
- Information Services: Revenue for the quarter ended
June 30, 2010 was $210.7 million, up 5.7%, compared to $199.3 million
for the quarter ended June 30, 2009. Income from operations for the
current first quarter was $20.9 million, up 31.8% compared to $15.8
million in the prior-year first quarter.
- Information Products: Revenue for the quarter
increased 5.4% to $59.7 million, compared with $56.7 million in the
first quarter a year ago. Income from operations for the quarter was
$1.1 million, compared to loss from operations of $3.0 million in the
first quarter of the previous year.
- Brazil Acquisition: The company announced a
strategic expansion into the South American market with the signing of a
definitive agreement for the acquisition of a controlling interest in
GoDigital, a data quality and precision marketing company in Sao Paulo
and Porto Alegre, Brazil. Founded in 2000, GoDigital has two unique,
proprietary products – GoQuality, which offers total data quality
management, and Claridata, a web-based suite that offers multichannel
marketing campaign management and geo-analytical indicators for targeted
marketing and campaign analysis.
Web Link to Financials
You may link to http://www.acxiom.com/FY11_Q1_Financials for the detailed financial information we typically attach to our earnings releases.
Acxiom is a recognized leader in marketing technology and services
that enable marketers to successfully manage audiences, personalize
consumer experiences and create profitable customer relationships. Our
superior industry-focused, consultative approach combines consumer data
and analytics, databases, data integration and consulting solutions for
personalized, multichannel marketing strategies. Acxiom leverages over
40 years of experience of data management to deliver high-performance,
highly secure, reliable information management services. Founded in
1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves
clients around the world from locations in the United States, Europe,
Asia-Pacific, South America and the Middle East. For more information
about Acxiom, visit Acxiom.com.
Forward Looking Statements
This release and today’s conference call may contain forward-looking
statements including, without limitation, statements regarding an
improvement in the economic outlook, and a continued return to our
historical seasonal revenue and operating income patterns. 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, 2010, which
was filed with the Securities and Exchange Commission on May 26, 2010.
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.