Income falls for Acxiom, new CFO named
by January 31, 2012 4:39 pm 198 views
Database marketer Acxiom Corp. posted smaller quarterly profits than one year ago due to declining revenue and a one-time goodwill charge.
The Little Rock-based tech firm reported third quarter net income of $7.9 million versus $20.8 million one year ago. Acxiom’s revenues slid about 2.4% to $280.89 million during the quarter.
The company re-evaluated goodwill and other intangibles associated with its Brazilian operations and as a result recorded a non-cash charge of approximately $15 million in the quarter.
“We are pleased with our recent progress, notably our improved cash flow and earnings, but we still have much more to accomplish,” said Acxiom CEO and President Scott Howe. “We have realigned and strengthened our management team, established a clear strategy and improved our operating visibility. Looking ahead, we have started the process of investing in new data analytics and product capabilities and must also seek to increase top line Marketing and Data Services growth. In addition, the team will also be focusing on improving the financial performance of our non-U.S. operations.”
Acxiom is often considered a bellwether of consumer spending as it has notable clients in the financial services and credit industries.
Acxiom has made a number of moves in the last several months including:
• Hiring Warren Jenson as chief financial officer and executive vice president. Jenson is a former Amazon.com and NBC financial officer.
• Hiring Nada Stirrat as the company’s first chief revenue officer. The former MySpace and MTV Networks digital advertising expert will take on new duties with domestic and international client delivery functions.
• Sold its background screening unit, Acxiom Information Security Services.
Acxiom shares (NYSE: ACXM) closed Tuesday (Jan. 31) at $13.72, up 20 cents. During the past 52 weeks the share price has ranged from an $18.06 high to an $8.94 low.