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Acxiom Announces Second Quarter Fiscal Year 2011 Results 

Q2 highlighted by revenue growth of 7.6% and operating income growth of 28.5%

For more information, contact:
Katharine Boyce
Investor Relations Coordinator
Acxiom Corporation
(501) 342-1321
Investor.relations@acxiom.com
EACXM

LITTLE ROCK, Ark. — October 27, 2010 — Acxiom® Corporation (Nasdaq: ACXM), a global leader in interactive marketing, today announced financial results for the second quarter of fiscal year 2011 ended September 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 that we have delivered another quarter of solid financial performance. We continue to see revenue growth as evidenced by the year-over-year revenue increase of almost eight percent. This translated into an impressive 29 percent increase in operating income over the second quarter of last year. In addition to executing in the near term, we invested in several projects that should provide for continued future growth.”

Second Quarter 2011 Highlights:

  • Revenue increased by 7.6% in the current quarter ended September 30, 2010 to $291.7 million, compared to $271.1 million for the quarter ended September 30, 2009. 
  • Income from operations of $27.3 million in the current year second quarter, up 28.5%, compared to income from operations of $21.2 million in the second quarter of the prior year.
  • Earnings per diluted share of $0.16 in the current quarter, compared to earnings per diluted share of $0.12 in the second quarter of fiscal 2010.
  • Operating cash flow of $43.0 million, compared to $60.7 million in the second quarter a year ago. 
  • Free cash flow available to equity of $9.7 million, compared to $29.4 million in the second 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.

Operational Highlights:

  • Information Services: Revenue for the quarter ended September 30, 2010 was $225.6 million, up 7.3%, compared to $210.2 million for the quarter ended September 30, 2009. Income from operations for the current second quarter was $23.0 million, up 14.9% compared to $20.0 million in the prior-year second quarter.
  • Information Products: Revenue for the quarter increased 8.5% to $66.1 million, compared with $60.9 million in the second quarter a year ago. Income from operations for the quarter was $4.4 million, compared to $1.2 million in the second quarter of the previous year.

Fiscal Year 2011 Year-To-Date Highlights:

  • Revenue increased by 6.6% in the current year six-month period, to $562.1 million, compared to $527.1 million for the same period last year.
  • Income from operations of $49.4 million for the first six months of fiscal year 2011, up 46.4%, compared to income from operations of $33.7 million in the comparable six-month period of fiscal 2010.
  • Earnings per diluted share of $0.28 for the current year six-month period, compared to earnings per diluted share of $0.17 in the comparable six-month period last year.
  • Operating cash flow of $60.0 million in the current fiscal year six-month period, compared to $76.9 million in the prior year six-month period.
  • Free cash flow available to equity of $3.4 million for the six months ended September 30, 2010, compared to $16.3 million for the six months ended September 30, 2009. 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.

Web Link to Financials

You may link to http://www.acxiom.com/FY11_Q2_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing services and technology 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 in 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, the Middle East and South America. 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 an improvement in the economic outlook, and the possibility of continued future growth. 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 reports on Form 10-K, particularly the discussion under the caption “Item 1A, RISK FACTORS” in our Annual Reports 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.