Acxiom Earnings Slip, Revenue Improves

With his first full quarter under his belt, new Acxiom Corp. CEO Scott Howe described the company’s financial performance as "in line with expectations."

The Little Rock-based data marketer posted net income of $12.3 million on improved revenue of $300 million. One year ago, Acxiom recorded a $13.2 million profit on sales and income of $291.7 million.

Earnings per diluted share was 15 cents, below analysts’ estimates of 17 cents per share.

“The second quarter was in line with expectations and demonstrates Acxiom’s continuing role as a strong technology and strategic partner for our clients,” said Howe, a former Microsoft executive who was selected to head Acxiom this summer. “It also indicates we’re practicing good financial stewardship, which helps fuel our continuing innovation. Accelerating top-line growth and margins must be a focus of our future efforts.”

Some second quarter operational highlights noted by the firm included:

• Information Services: Revenue for the quarter ended September 30, 2011 was $230.7 million, up 2.2% compared to $225.6 million for the quarter ended September 30, 2010. Income from operations for the current second quarter was $23.2 million, up 1.1% compared to $23.0 million in the prior-year second quarter.
• Information Products: Revenue for the quarter increased 5.0% to $69.4 million, compared with $66.1 million in the second quarter a year ago. Income from operations for the quarter was $8.2 million, compared to $4.4 million in the second quarter of the previous year.
• Debt prepayment: The company prepaid $75 million of its term loan due March 15, 2015 in the current quarter.
• Share repurchase: The company instituted a share repurchase program during the quarter and has repurchased 3.7 million shares for $39.1 million, of which $5.0 million was accrued as of September 30, 2011 and paid in October.

Acxiom’s stock closed trading on Tuesday at $11.63 per share.