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FY13 Q1 Text And Financials

Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, today announced financial results for the first quarter of fiscal year 2013 ended June 30, 2012.

Revenue from continuing operations was $272 million, down 2 percent compared to $276 million for the first quarter last year. Income from continuing operations increased 23 percent to $25 million in the current quarter, compared to $21 million in the prior year. Earnings per diluted share attributable to Acxiom stockholders were up approximately 31 percent in the current quarter to $0.17, compared to diluted earnings per share of $0.13 in the same period.

Operating cash flow increased 7 percent to $195 million for the trailing twelve months, compared with $182 million for the trailing twelve months ended June 30, 2011. Free cash flow to equity increased 154 percent to $175 million for the trailing twelve months, compared with $69 million for the trailing twelve months ended June 30, 2011. Free cash flow to equity for the trailing twelve months includes $73 million in proceeds from the sale of the Company’s background screening business. Free cash flow available to equity is a non-GAAP financial measure. A reconciliation to the comparable GAAP measure, operating cash flow, is attached.

“We are making progress – but we still have much to do,” said Acxiom CEO Scott Howe. “While our margins have improved and we’ve strengthened our managerial capability and focus, this year will continue to be a period of investment and transition. Our objective is straightforward – get better every day we come to work.”

First Quarter Highlights:

  • 0perating margin increased to 9.4 percent, up approximately 2 percentage points year over year.
  • Acxiom repurchased 2.4 million shares for $33 million during the quarter. Since August 2011, the company has repurchased 8.1 million shares, or approximately 10 percent of the outstanding common stock, for $100 million.
  • In the quarter, Acxiom expanded its global partner program. The company was selected by Mindshare, a leading global media network, as the consumer insights provider for CORE, Mindshare’s new data-driven marketing intelligence platform. Through CORE, Acxiom delivers its unique breadth and accuracy of consumer insights to data-driven marketers. In Australia, the company and Yahoo!7 announced a new partnership to leverage Acxiom’s extensive offline data to deliver more highly effective online advertising.
  • Tim Cadogan, CEO of OpenX Technologies and former SVP of Global Advertising Marketplaces for Yahoo!, has been named to the Acxiom Board of Directors.
  • John Battelle, founder and executive chairman of Federated Media Publishing, has been nominated as a candidate for election to the Board at the company’s August 16, 2012, annual stockholders meeting.

Segment Results:

  • Marketing and Data Services: Revenue for the first quarter was $186 million, roughly flat compared to $185 million for the same period a year ago. U.S. revenue of $160 million was up 2 percent, but was offset by declines internationally. Income from operations for the first quarter was $18 million, compared to $17 million in the prior period. Operating margin was 10 percent, compared to 9 percent in the previous year.
  • IT Infrastructure Management: Revenue for the first quarter decreased 4 percent to $70 million, compared with $73 million for the same period a year ago. Income from operations for the quarter was $9 million, compared to $4 million in the prior period. Operating margin was approximately 13 percent compared to 6 percent a year ago.
  • Other Services: Revenue for the first quarter was $16 million, down from $18 million in the prior year. Losses from operations were approximately $2 million, compared to $1 million in the prior period.

Financial Guidance

The following projections are forward looking and are subject to certain risks and uncertainties that could cause actual results to differ materially as detailed in the Forward Looking Statements section of this press release. Acxiom’s estimates for fiscal 2013 are as follows:

  • Revenue from continuing operations is expected to be flat to slightly down.
  • Earnings per diluted share attributable to Acxiom shareholders are expected to be in the range of $0.60 to $0.65.

For the second quarter of fiscal 2013, revenue from continuing operations is expected to be down roughly 5 percent principally as a result of expected declines in the Company’s IT Infrastructure Management and Other Services segments.

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