Acxiom Reports 4Q Loss on One-time Charges

by Arkansas Business Staff  on Wednesday, May. 11, 2011 7:08 am  

Acxiom's River Market headquarters.

Acxiom Corp. of Little Rock on Wednesday reported a loss attributable to the company of $67 million, or 88 cents per share, compared to a profit of 16.6 million, or 20 cents per share, during the same quarter last year. 

From an operations standpoint, the quarterly loss was $53 million compared to a profit of $35.2 million during the same quarter last year. Excluding unusual items, the company said income from operations would be $34.9 million, a 4.3 percent increase from the same quarter last year.

The company also said fourth-quarter revenue increased by 3.6 percent to $298.8 million from $288.3 million during the same quarter last year.

Among the unusual items was a goodwill/asset impairment of $79.7 million. The data services firm tipped investors to that charge in March, when it disclosed a non-cash impairment that would likely result in write-downs of between $50 million to $90 million.

"Our results for the fourth quarter and for the entire fiscal 2011 year were in line with our expectations expressed in our March 30th announcement," Jerry Gramaglia, Acxiom's interim CEO, said in a news release.

"In the fourth quarter and continuing into fiscal year 2012, Acxiom's focus is on delivering exceptional value to the world's top marketers. In turn, we continue to be rewarded with long term renewals and significantly expanded business relationships."

Gramaglia was appointed interim CEO in March when the company announced the departure of CEO John Meyer. CFO Chris Wolf is also leaving the company on June 1.

One-time Charges

Other one-time charges weighed on results:

  • $15.4 million related to European Services
  • $57.1 million related to European Products
  • $7.2 million related to operations in the Middle East, North Africa
  • $3.3 million related to the disposal of the Netherlands and Portugal operations, of which $1.1 million represents cash payments to be made in future periods
  • $6.5 million in "other charges," which includes $5.5 million to be paid in future periods

Before Acxiom's March announcement, analysts had forecast adjusted earnings of 24 cents per share on $303 million in revenue, according to estimates compiled by FactSet. Thomson Reuters analysts expected earnings per share of 19 cents on revenue of $296.7 million, all before one-time charges.

For the fiscal year 2011, Acxiom reported income from operations of $30.9 million, down 69 percent from $98.8 million during the same quarter last year. Excluding unusual items, income would be $115.2 million, up 18 percent from $97.9 million in fiscal 2010.

Fiscal year revenue $1.160 billion, up 5 percent  from $1.099 billion in fiscal 2010.

Shares of Acxiom (Nasdaq: ACXM) closed on Tuesday at $14.47, up 1.7 percent.

Acxiom executives will discuss the fourth-quarter and fiscal results at a 10 a.m. conference call.



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