Acxiom hires new CEO, posts first quarter income gain

Little Rock-based Acxiom Corp. reported Wednesday (July 27) a fiscal first quarter profit of $10.975 million and announced that former Microsoft exec Scott Howe is the new president and CEO.

The Little Rock database marketer unexpectedly ended its relationship with former CEO John Meyer in late March ahead of a quarterly earnings report that saw major write-downs leading to a big loss.

Howe, 43, is a former corporate vice president of Microsoft Advertising Business Groups. In this role, he managed a multi-billion dollar business encompassing all emerging businesses related to online advertising, including search, display, ad networks, in-game, mobile, digital cable and a variety of enterprise software applications, according to an Acxiom release. Prior to Microsoft, he served in multiple executive positions within interactive company aQuantive, which was acquired by Microsoft in 2007.

Acxiom globally provides marketing services and technology that enable marketers to reach and gain information about market audiences, provide specific consumer expectations and overall help better tie companies and organizations to their customers and clients.

Acxiom had hinted it would hire its next CEO with an emphasis in digital advertising, a key growth area for the company.

“Scott has repeatedly demonstrated a creative and innovative capacity for the development, launch and delivery of new products and services, creating significant business results,” Acxiom Board Chairman Michael Durham said in a statement. “He has extensive digital marketing and technology experience, and is a passionate executive with infectious energy and leadership abilities. Scott is a valuable addition to Acxiom with a vision for success for the company, its clients and associates.”

Howe said in the release he plans to position Acxiom to be more of a strategic advisor to clients.

“Acxiom has superior talent, incredible technology and a world-renowned client roster – a strong foundation for success as the lines between traditional and digital marketing disappear,” Howe explained. “Marketing has become extremely complex. It’s changed more in the past 10 years than in the previous 100. Clients are looking to us to cut through the clutter and simplify, and it’s our job to be their strategic advisor. It is a challenge I look forward to embracing.”

Howe comes on board as the company’s financials appear to be improving. The 13 cents per share first quarter income was on target with what was expected by analysts who cover the company.

Total revenue during the quarter was $288.934 million, up 6.9% compared to the 2010 period. However, the cost of revenue was $229.341 million, up 8.99% compared to the 2010 period.

The company said its cash flow improved to $32.8 million in the quarter compared to $17 million in the 2010 period. Also, made a $25 million prepayment on long-term debt, and sold its ownership in a division that operated in the Middle East and North Africa.

"We achieved overall solid financial performance for the quarter and are pleased with our continued revenue growth, especially in our core U.S. marketing services and products business,” Jerry Gramaglia, Acxiom’s interim CEO, said in a statement. “During the quarter we increased spending in sales, account management and service delivery to continue our momentum and position Acxiom for strong performance through the balance of the year."

Acxiom Corp. shares (NASDAQ: ACXM) opened Wednesday at $12.73 and were up more than $1.50 in mid-day trading. During the past 52 weeks the share price has ranged from an $18.83 high to an $11.70 low.