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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
June 25, 2001
Date of Report (Date of earliest event reported)
Acxiom Corporation
(Exact name of registrant as specified in its charter)
Delaware 0-13163 71-0581897
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
P.O. Box 8180, 1 Information Way, Little Rock, Arkansas 72203-8180
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (501) 342-1000
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE On June 25, 2001, Acxiom
Corporation (the "Acxiom" or the "Company") issued a press release announcing
its anticipated financial results for the first quarter of fiscal 2002 and held
a telephone conference call regarding its anticipated financial results for the
first quarter. Acxiom's press release and prepared comments for the conference
call are attached as Exhibits to this report and are incorporated herein by
reference. This Form 8-K contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially; such statements include but are not necessarily limited to the
following: 1) that sales of AbiliTec will continue to be strong; 2) that there
will continue to be strong customer demand for AbiliTec; 3) that AbiliTec will
continue to drive the long-term success of the Company; 4) that the Company is
quickly accomplishing its goal of AbiliTec becoming the de facto standard for
Customer Data Integration; 5) that AbiliTec can provide tremendous value to
companies that seek to grow revenue, satisfy customers and control costs; 6)
that the adoption of subscription revenue recognition for AbiliTec revenues was
the right choice for the Company and such adoption will have the expected impact
and effect upon the Company, including, but not limited to, many long term
benefits, a better matching of cash flow to earnings and will allow the business
of Acxiom to be more predictable and transparent; 7) that the write-offs and
charges will be within the indicated ranges; 8) that the revenue and earnings
projections will be within the indicated ranges; 9) that the adoption of SAB 101
will have the indicated impact; 10) that the Company will be able to effectively
implement and continue its expense reduction efforts, within the indicated
ranges; 11) that the Company's cash flow will be within the indicated range; 12)
that the indicated revenue, earnings per share, cash flow, tax rate,
depreciation, amortization, capital expenditures, software development and the
indicated growth rates for future periods will be within the indicated amounts
and ranges; 13) that the economic environment and business conditions will
remain difficult to predict and that general economic activity could continue to
decline. The following are important factors, among others, that could cause
actual results to differ materially from these forward-looking statements. With
regard to all statements regarding AbiliTec: the complexity and uncertainty
regarding the development of new software and high technologies; the
difficulties associated with developing new AbiliTec products and AbiliTec
Enabled Services; the loss of market share through competition or the acceptance
of these or other Company offerings on a less rapid basis than expected; changes
in the length of sales cycles; the introduction of competent, competitive
products or technologies by other companies; changes in the consumer and/or
business information industries and markets; the Company's ability to protect
proprietary information and technology or to obtain necessary licenses on
commercially reasonable terms; the impact of changing legislative, accounting,
regulatory and consumer environments in the geographies in which AbiliTec will
be deployed. With regard to the statements that generally relate to the business
of the Company: all of the above factors; the fact that the financial numbers
listed herein are estimates and ranges that are based on the Company's
understanding of current facts and circumstances; the possibility that certain
contracts may not be closed; the possibility that economic or other conditions
might lead to a reduction in demand for the Company's products and services; the
possibility that the current economic slowdown may worsen and/or persist for an
unpredictable period of time; the possibility that significant customers may
experience extreme, severe economic difficulty; the continued ability to attract
and retain qualified technical and leadership associates and the possible loss
of associates to other organizations; the ability to properly motivate the sales
force and other associates of the Company; the ability to achieve cost
reductions and avoid unanticipated costs; changes in the legislative,
accounting, regulatory and consumer environments affecting the Company's
business including but not limited to litigation, legislation, regulations and
customs relating to the Company's ability to collect, manage, aggregate and use
data; data suppliers might withdraw data from the Company, leading to the
Company's inability to provide certain products and services; short-term
contracts affect the predictability of the Company's revenues; the potential
loss of data center capacity or interruption of telecommunication links; postal
rate increases that could lead to reduced volumes of business; customers that
may cancel or modify their agreements with the Company; the successful
integration of any acquired businesses and other competitive factors. With
respect to the providing of products or services outside the Company's primary
base of operations in the U.S.: all of the above factors and the difficulty of
doing business in numerous sovereign jurisdictions due to differences in
culture, laws and regulations. Other factors are detailed from time to time in
the Company's periodic reports and registration statements filed with the United
States Securities and Exchange Commission. Acxiom believes that it has the
product and technology offerings, facilities, associates and competitive and
financial resources for continued business success, but future revenues, costs,
margins and profits are all influenced by a number of factors, including those
discussed above, all of which are inherently difficult to forecast. Acxiom
undertakes no obligation to update the information contained in this Form 8-K or
any other forward-looking statement.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99(a) June 25, 2001 Press Release.
99(b) Acxiom's prepared comments for the June 25, 2001
telephone conference call discussing Acxiom's anticipated first quarter.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Acxiom Corporation
Date: June 25, 2001
/s/ Catherine L. Hughes
Catherine L. Hughes
Secretary and Corporate Counsel
EXHIBIT 99(a)
Robert S. Bloom Company
Financial Relations Leader
Acxiom Corporation (501) 342-1321
Acxiom® Corporation Expects Revenue Shortfall and Earnings Miss;
Significant Cost-Reduction Actions Taken
LITTLE ROCK, Ark - June 25, 2001--Acxiom® Corporation (Nasdaq: ACXM)
announced today that it anticipates that revenue and earnings for the first
quarter of fiscal 2002 ending June 30, 2001 will be below the Company's
previously stated expectations. The Company also announced significant
cost-reduction efforts, including a 7 percent workforce reduction, to better
position the Company in subsequent quarters to address the weakened economy.
Acxiom will hold a conference call at 8:30 a.m. CDT today to discuss this
information further. Interested parties are invited to listen to the call, which
will be broadcast via the Internet at www.acxiom.com. Additional detailed
financial information will be issued in the quarterly earnings news release on
July 23, 2001 as previously scheduled. Acxiom expects that first quarter
revenues will be approximately $205 million, resulting in an operating loss of
$3 million to $6 million and a per share loss of $.06 to $.09 adjusting for
non-recurring items. The Company further expects to take primarily non-cash
write-offs in the range of up to $80 million to $90 million attributable to a
restructuring of operations. It is anticipated that the cash portion of this
write-off will be approximately $9 million. "Despite strong competitive
viability of our products and services in the marketplace, good Company
fundamentals and previous cost-reduction programs, Acxiom's business performance
continues to be significantly impacted by the severe economic downturn," Company
Leader Charles D. Morgan said. "Although our customer base represents some of
the leading companies in the world, these same companies are aggressively
managing their costs and deferring projects and large purchases. "For the past
five years, we have been migrating from mainframes to servers and more recently
to AbiliTec-driven processes at Acxiom. Due to the economic situation, we are
now accelerating our focus on the new technologies we have developed, and in
this economic climate we can no longer carry the burden of both the old and the
new technology. That has led us to make this change in strategy, which has led
to the write-off of some of our old technology," Morgan continued. "We are
aggressively reducing expenses to achieve positive results in this tough
economy," Morgan said. "There is not sufficient evidence that the economic
slowdown is reversing. As our cost structure is largely fixed, we are taking
definitive cost-reduction actions to protect the Company against slower than
expected revenue growth. These actions will include a 7 percent workforce
reduction, or approximately 400 associates, further pay cuts for many Acxiom
leaders, and reductions in computer expenses, building costs, consulting and
outside services and other items. We are taking a substantial charge to earnings
for these restructuring actions, impairment of assets and other adjustments.
"While we expect to meet our expense targets for Q1, this workforce reduction
and restructuring were necessary because of continued economic weakness leading
to slowed revenue growth," Morgan said. "We expect the expense reduction actions
we have announced today to reduce expenses by an additional $17 million to $20
million per quarter beginning in Q2, resulting in an anticipated quarterly base
operating expense run rate of less than $200 million." Morgan said Acxiom
leaders remain confident about the Company's future. "We continue to be very
excited about the long-term prospects of our business and the impact AbiliTec
will have in the Customer Data Integration space," Morgan said, "and we believe
these expense actions make Acxiom much leaner so that when the economy recovers,
we will be positioned extremely well for significant long-term success." "It is
important to note that the quarter ending in June has historically been our
weakest seasonal quarter. Going into the second quarter we expect to have
several new business wins that will begin contributing revenue in the quarter.
Coupled with a good pipeline of active proposals, we believe that this new cost
base provides the appropriate foundation for continuously improving profits."
Outlook The financial projections stated today are based on the Company's
current expectations. These projections are forward looking and actual results
may differ materially. These projections do not include the potential impact of
any mergers, acquisitions, divestitures or other business combinations that may
be completed in the future. Our current assumption concerning general economic
activity is that we do not expect substantial improvement during this fiscal
year and our guidance is structured accordingly. For the second quarter ending
September 30, 2001, the Company expects revenue in the range of $215 million to
$225 million and earnings per share of $.05 to $.10. Despite a weak economy we
expect to generate sequentially improving profits for the balance of fiscal year
2002. Assuming no significant improvements in general economic conditions, we
expect $880 million to $900 million in revenues for fiscal 2002. We expect
earnings per share for fiscal 2002 of $.28 to $.33, adjusting for non-recurring
items in the first quarter. Earnings per share for the following four quarters,
beginning July 1, 2001, are expected to be in the range of $.50 to $.55. About
Acxiom Corp. Acxiom Corporation, a global leader in Customer Data Integration
(CDI) and customer recognition infrastructure, enables businesses to develop and
deepen customer relationships by creating a single, accurate view of their
customers across the enterprise. Acxiom achieves this by providing Customer Data
Integration software, database management services, and premier customer data
content through its AbiliTecTM, Solvitur® and InfoBase® products, while
also offering a broad range of information technology outsourcing services.
Founded in 1969, Acxiom (Nasdaq: ACXM) is based in Little Rock, Arkansas, with
locations throughout the United States and with operations in the United
Kingdom, France, Spain and Australia. Acxiom revenues were $1.01 billion for the
fiscal year ended March 31, 2001. For more information, please visit
www.acxiom.com. Acxiom, InfoBase and Solvitur are registered trademarks of
Acxiom, RTC, Inc. AbiliTec is a trademark of Acxiom Corporation. This press
release and the conference call to be held today contains forward-looking
statements that are subject to certain risks and uncertainties that could cause
actual results to differ materially; such statements include but are not
necessarily limited to the following: 1) that sales of AbiliTec will continue to
be strong; 2) that there will continue to be strong customer demand for
AbiliTec; 3) that AbiliTec will continue to drive the long-term success of the
Company; 4) that the Company is quickly accomplishing its goal of AbiliTec
becoming the de facto standard for Customer Data Integration; 5) that AbiliTec
can provide tremendous value to companies that seek to grow revenue, satisfy
customers and control costs; 6) that the adoption of subscription revenue
recognition for AbiliTec revenues was the right choice for the Company and such
adoption will have the expected impact and effect upon the Company, including,
but not limited to, many long term benefits, a better matching of cash flow to
earnings and will allow the business of Acxiom to be more predictable and
transparent; 7) that the write-offs and charges will be within the indicated
ranges; 8) that the revenue and earnings projections will be within the
indicated ranges; 9) that the adoption of SAB 101 will have the indicated
impact; 10) that the Company will be able to effectively implement and continue
its expense reduction efforts, within the indicated ranges; 11) that the
Company's cash flow will be within the indicated range; 12) that the indicated
revenue, earnings per share, cash flow, tax rate, depreciation, amortization,
capital expenditures, software development and the indicated growth rates for
future periods will be within the indicated amounts and ranges; 13) that the
economic environment and business conditions will remain difficult to predict
and that general economic activity could continue to decline. The following are
important factors, among others, that could cause actual results to differ
materially from these forward-looking statements. With regard to all statements
regarding AbiliTec: the complexity and uncertainty regarding the development of
new software and high technologies; the difficulties associated with developing
new AbiliTec products and AbiliTec Enabled Services; the loss of market share
through competition or the acceptance of these or other Company offerings on a
less rapid basis than expected; changes in the length of sales cycles; the
introduction of competent, competitive products or technologies by other
companies; changes in the consumer and/or business information industries and
markets; the Company's ability to protect proprietary information and technology
or to obtain necessary licenses on commercially reasonable terms; the impact of
changing legislative, accounting, regulatory and consumer environments in the
geographies in which AbiliTec will be deployed. With regard to the statements
that generally relate to the business of the Company: all of the above factors;
the fact that the financial numbers listed herein are estimates and ranges that
are based on the Company's understanding of current facts and circumstances; the
possibility that certain contracts may not be closed; the possibility that
economic or other conditions might lead to a reduction in demand for the
Company's products and services; the possibility that the current economic
slowdown may worsen and/or persist for an unpredictable period of time; the
possibility that significant customers may experience extreme, severe economic
difficulty; the continued ability to attract and retain qualified technical and
leadership associates and the possible loss of associates to other
organizations; the ability to properly motivate the sales force and other
associates of the Company; the ability to achieve cost reductions and avoid
unanticipated costs; changes in the legislative, accounting, regulatory and
consumer environments affecting the Company's business including but not limited
to litigation, legislation, regulations and customs relating to the Company's
ability to collect, manage, aggregate and use data; data suppliers might
withdraw data from the Company, leading to the Company's inability to provide
certain products and services; short-term contracts affect the predictability of
the Company's revenues; the potential loss of data center capacity or
interruption of telecommunication links; postal rate increases that could lead
to reduced volumes of business; customers that may cancel or modify their
agreements with the Company; the successful integration of any acquired
businesses and other competitive factors. With respect to the providing of
products or services outside the Company's primary base of operations in the
U.S.: all of the above factors and the difficulty of doing business in numerous
sovereign jurisdictions due to differences in culture, laws and regulations.
Other factors are detailed from time to time in the Company's periodic reports
and registration statements filed with the United States Securities and Exchange
Commission. Acxiom believes that it has the product and technology offerings,
facilities, associates and competitive and financial resources for continued
business success, but future revenues, costs, margins and profits are all
influenced by a number of factors, including those discussed above, all of which
are inherently difficult to forecast. Acxiom undertakes no obligation to update
the information contained in this press release or any other forward-looking
statement.
EXHIBIT 99(b)
Notes for Conference Call
June 25, 2001
8:30 a.m. CDT
Good Morning. With us this morning are Charles Morgan, Bob Bloom, Caroline Rook
and several other Acxiom leaders. We announced an earnings warning earlier this
morning and have scheduled this conference call to discuss this announcement.
Obviously we haven't completed the quarter. This announcement is based on our
best estimate of the quarterly results available to us at this time. We,
therefore, won't have answers to all of your questions, but we will do the best
we can to answer your questions after our prepared remarks. I will now turn it
over to our Company Leader, Charles Morgan for his comments.
MORGAN'S COMMENTS
o Spelled out what we know in the news release
o Don't have final numbers, so not all the details
o Looks like about a $15mm to $20 mm Q1 Revenue miss from
previous guidance
o Our revenues continue to be seriously impacted by the economic climate.
o We have maintained our customer bases, but experienced weak revenues across
all lines of business.
o Rodger and Bob will give more details on the financials and I will give more
details of Acxiom's plan to improve results for the rest of the year.
o We have said before that many clients/prospects simply are not spending
money and that has remained the case. Our backlog of proposals outstanding is
very strong. That backlog gave us confidence that we would meet what we
thought was a conservative Q1 forecast.
o But I do not have to tell you companies are delaying major purchases and the
new business expected during the quarter has been delayed in many cases into
Q2.
o Simple as that -
o Ad hoc project work - once automatic, has tapered way off
o Size of those ad hoc projects is down
o Others are being delayed o However, we now have better picture of true
"core" revenue in a tough economy.
o And in recent weeks we have worked hard to learn customer plans for Q2.
I emphasize that we have spent more time getting a revenue forecast tied
down than ever before.
o As a result of this effort and Q1 revenues, we are changing our
assumptions about the base level of revenue and the growth for the year.
o That forces us to take major steps to reduce costs.
o In the press release we outline several major actions.
o Payroll and Consulting costs will be reduced by almost $10 million per quarter
beginning in Q2
o Computer and other computer related costs will be reduced approximately 5MM
o Other cost reductions resulting from facility consolidation, reductions in
Advertising, and other actions will add a couple of million more to the drop
in quarterly expense run rate.
o These actions should reduce next quarter's run rate on expenses by $17
million to $20 million below the run rate we had going into Q1.
o We detailed in April a list of spending cuts we were going to make in Q1,
and today I can tell you that we hit those targets. Our shortfall was entirely
revenue related. o However, we expect Q2 revenues to increase between $10
million and $20 million over our Q1 revenues. Virtually all of that increase
comes from new business that has already been won and in most cases is
already underway. I'll give you more details on this point later in my
comments.
o And we are assuming for the purposes of earnings guidance no run rate
improvement due to seasonality.
o Including anticipated hardware sales, our revenues of $215 million to
$225 million for Q2 will be matched with base operating expenses of less
than $200 million, plus the cost of hardware sold.
o As a result we are comfortable with the $.05 to $.10 guidance for Q2.
The state of our business and the economy this quarter have caused us to
make some key changes in our future approach to running Acxiom.
o The visible sign of that in this release is the size of the nonrecurring
charge.
o As we have said many times over the last several years, Acxiom has been
going through an enormous transition.
o Moved from a mainframe services company to a server based services company.
And we have deployed numerous other new technologies such as a 20 Million
investment in virtual tape technology. These investments have made us more
efficient and able to deliver more value to customers.
o Moved from batch based marketing database solutions to real-time supporting a
wide array of CRM activities.
o Of course the biggest change is the development and rollout of AbiliTec as
the foundation of all that we do. It has changed every services solution and
every product that Acxiom delivers today.
o The result is a totally new company from the one of 5 or 6 years ago. And
today that effort has helped us be recognized as the industry leader by
Gartner Group and others. Acxiom has developed the CDI space.
o AbiliTec is a resounding success by any measure - and remains the key factor
influencing our future.
o We have made many investments - some great and some not so great - that have
been absorbed by our 10-year record of 30% annual growth rate.
o Today, with our sharpened focus on our new business strategy,
some of those investments that are part of our past cannot be carried in the
environment of today.
o We will concentrate on our core business and what we do best.
o As I told you before, the size of our backlog is great, and we have
closed significant new business.
o Important to understand that the Q1 revenue number doesn't tell the whole
story.
o Because of our new subscription method of revenue recognition for data
licenses, design-and-build services fees and AbiliTec, there is a lot of
work being down at Acxiom during Q1 for which we are not recognizing revenue.
o We've got about 20 new deals that will contribute revenue in Q2 and Q3.
These new opportunities added little or no revenue in Q1.
o In fact, we'll book more than $5 million in Q2 alone on these 20 deals, which
total more than $130 million over the life of the contracts
o These include:
o AbiliTec deals with two major on-line financial institutions, a cable TV
company and a data company.
o Database services deals with a major insurance company, two large
financial institutions and a financial services company
o Data licenses with two telecommunications company and an internet service
provider
o And there's an AbiliTec component to all the services-related deals I've
just mentioned - which will contribute $1.5 million to $2.5 million in Q2.
o That is an important part of the $130 million in deals that will contribute
$5 million in Q2.
o And then there's the pipeline - includes many more deals with a high
probability of closing soon. They average over three years and represent more
than $250 million over the life of the contracts
o That's more than $80 million a year - or more than $20 million a quarter.
o Together, the closed deals and the pipeline establish an excellent
base for our subscription revenue recognition model.
o These deals in the pipeline include:
o Large AbiliTec deals with a major financial institution and a global business
services company that total $20 million over the life of the contracts
o And huge database services contracts with two financial institutions that
will include AbiliTec and are much larger than the contracts I just mentioned.
o You can see that there's a lot going on, despite the economy
o Represents the first wave of subscription revenue that will continue to
build on itself.
o In addition to the 5 million in new contracts we have growth in existing
customer work forecast for Q2 based on the customer input I spoke of earlier.
o These two components - New business committed and mostly under way now along
with revenue from existing customers that is being forecast builds to our
215 to 225 number for Q2.
o And might I remind you we'll have that same $5 million of new business in
Q3 and for many quarters to come - plus new deals that start kicking in
o We are striving to be very conservative - on purpose
o In fact One of our division leaders told me
last night that from his prospective the Q2 forecast was pretty conservative.
o He Doesn't want any more disappointments and neither do I.
o Hope I've been able to give you a clearer look at the factors in play at
Acxiom and our plan for improving our financial performance in this tough
economic climate.
o Now I'll turn it over to Bob Bloom. Bob.
BLOOM'S COMMENTS
Thank you Charles, and
good morning. Before I get started, I would like to mention at this time that
this conference call contains forward-looking statements that involve risks and
uncertainties, including statements about future growth. Actual results could
differ, based upon market conditions and other risks detailed from time to time
in the Company's SEC filings. We have included a comprehensive statement
concerning the forward-looking nature of this disclosure in our press release.
Since you each have access to that press release, we incorporate that statement
in its entirety without reading it to you at this time. I would like to
reiterate Charles' comment that we have yet to close the quarter and as a result
financial information is still limited and preliminary. However, contrary to
last quarter, we are now on the subscription method of recognizing revenues for
significant parts of our business and as a result, believe we have enough
information to comment on the fiscal first quarter. We are all disappointed that
we have not met our earlier guidance. Clearly our disappointment is focused on
the top line shortfall. The estimated revenues of the quarter of $205 million
falls short of the $220 million to $230 million we estimated in our earlier
guidance. This shortfall translates directly into the loss from operations
before non-recurring items that we currently estimate. The $205 million of
revenues reflects a shortfall from all segments of our business and includes the
known impact of revenue lost from the Wards business. Other impacts to the
projected first quarter revenue include extremely low hardware related revenues
together with project related services and Infobase revenues. Included in the
first quarter revenue are an expected $3 to 4 million of AbiliTec related
revenues. We also expect to report several deals from our channel partners. The
AbiliTec results are in line with our expectations and reflect the impact of
subscription accounting on the recognized revenues. We also have a $20 million
contract pipeline of AbiliTec from two major prospects which we believe will
close in Q2. With June representing our seasonally weakest quarter, we believe
our current guidance is reflective of very conservative economic assumptions
coupled with contracts either completed or imminent to yield the second quarter
revenue guidance. The expense cuts that Charles has outlined provide comfort
that our earnings forecast is reasonable. Rodger will provide details on the
non-recurring charge. Regarding our outlook, I would also suggest that we have
effectively pushed our prior fiscal 2002 guidance out one quarter. That is our
forward four quarter guidance beginning July 1, 2001 of $ .50 - .55 is just
slightly below the $.60 communicated for the year ended 3/31/02 Further
information on the quarter will be included in our previously scheduled press
release and conference call on July 23 and 24, respectively. I'll now turn it
over to Rodger for final comments.
KLINE'S COMMENTS:
Thanks, Bob. Charles and Bob have covered most of the information that we have
available this morning. I will briefly explain the write-off. As we explained in
the press release earlier this morning, Acxiom has been in the process of
migrating from older technology-based solutions to new technology-based
solutions for the past several years. We have been migrating from mainframes to
servers, and more recently we have been migrating from our traditional customer
data integration solutions to AbiliTec-driven processes which are much more
efficient and deliver dramatically improved results. These new AbiliTec-driven
processes and the newer technology which supports them, have revolutionized
Acxiom's capabilities to deliver customer data integration to our customers. Due
to the economic situation we have decided to accelerate our focus on these new
technologies that we have developed and to accelerate our efforts to eliminate
the older technology and processes we have traditionally deployed. In this
economic climate we can no longer carry the burden of both the old technology
and processes and the new technology and processes. This has led to our decision
to change our strategy. This change in strategy has resulted in a restructuring
of operations which has led to the write-off of some of our old technology. We
expect primarily non-cash write-offs in the range of up to $80 million to $90
million attributed to this restructuring of operations. We expect the cash
portion of this write-off to be approximately $9 million. These write-offs
include severance associated with the workforce reduction and payroll related
items of approximately $12 million, equipment write-downs associated with older
technology of $40-$50 million, software related write-downs of approximately $25
million and miscellaneous other write-offs associated with this restructuring.
Our expense actions associated with this restructuring of operations are
expected to adjust our quarterly run-rate of base operating expenses to below
$200 million. We have cut expenses aggressively enough to be confident that we
will show profits next quarter and that those profits will increase sequentially
quarter by quarter as we close the new business in the pipeline that Charles
discussed. As our new subscription revenue phases in as we close this new
business, we expect our profits to continually grow over the next several
quarters and we expect earnings per share for the next four quarters beginning
July 1 to be in the range of $.50 to $.55. That completes our prepared remarks.
We'll now open the floor for a brief question and answer period.
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With that, we will close the question and answer period and the conference call.
Thank you for your interest in Acxiom. Bob Bloom and the rest of us will be
available to answer individual questions the rest of the day. Thank you.
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With that, we will close the question and answer period and the conference call.
Thank you for your interest in Acxiom. Bob Bloom and the rest of us will be
available to answer individual questions the rest of the day. Thank you.