UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 25, 2007
ACXIOM CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
|
0-13163 |
71-0581897 | |
|
(Commission File Number) |
(IRS Employer Identification No.) | |
|
|
| |
|
1 Information Way, P.O. Box 8180, Little Rock, Arkansas |
72203-8180 | |
|
(Address of Principal Executive Offices) |
(Zip Code) | |
501-342-1000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
x |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 25, 2007, Acxiom Corporation (the “Company”) issued a press release announcing the results of its financial performance for the first quarter of fiscal year 2008. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.
The Company’s press release and other communications from time to time include certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.
The attached press release utilizes a non-GAAP measure of free cash flow available to equity. Free cash flow available to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt (total debt payments excluding payments on the line of credit). The Company’s management believes that this measure of free cash flow available to equity is superior to the previously reported free cash flow, since it represents the amount of money available for the Company’s discretionary spending after funding all required obligations including scheduled debt payments, and it therefore provides a useful measure of liquidity for assessing the amount of cash available for general corporate and strategic purposes.
The non-GAAP financial measure used by the Company in the attached press release may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for measures of performance or liquidity prepared in accordance with GAAP.
|
Item 9.01 |
Financial Statements and Exhibits |
|
(c) |
Exhibits. |
The following exhibits are furnished herewith:
|
Exhibit |
|
Description |
|
|
|
|
|
99.1 |
|
Press Release of the Company dated July 25, 2007 announcing first quarter earnings for fiscal year 2008. |
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.
|
Dated: |
July 25, 2007 |
ACXIOM CORPORATION
By: /s/ Jerry C. Jones
|
|
Name: |
Jerry C. Jones |
|
|
Title: |
Business Development/Legal Leader |
EXHIBIT INDEX
|
Exhibit |
|
Description | |
|
|
|
| |
|
99.1 |
|
Press Release of the Company dated July 25, 2007 announcing first quarter earnings for fiscal year 2008. | |
For more information, contact:
Katharine Raymond
Investor Relations Coordinator
Acxiom Corporation
(501) 342-1321
EACXM
Acxiom® Announces First-Quarter Results
LITTLE ROCK, Ark. — July 25, 2007 — Acxiom® Corporation (NASDAQ: ACXM) today announced financial results for the first quarter of fiscal 2008 ended June 30, 2007. Revenue for the three-month period was $338.2 million, an increase of 0.4 percent over $336.7 million for the comparable prior-year period. Income from operations for the three-month period equaled $4.1 million compared to $36.3 million for the quarter ended June 30, 2006. The diluted loss per share of $.15 includes the impact of $20.6 million, or 24 cents per diluted share, in unusual expense items, net of income tax effect, in the quarter detailed below.
Charles D. Morgan, Acxiom’s company leader and chairman of the board stated, “We remain focused on operating results while we advance the acquisition process with Silver Lake and ValueAct Capital. We continue to believe that successfully completing this deal is in the best interests of Acxiom and its constituents.”
Details of Acxiom’s first-quarter performance include:
|
|
• |
Revenue of $338.2 million, up 0.4 percent from $336.7 million in the first quarter a year ago. |
|
|
• |
Income from operations of $4.1 million, an 88.6 percent decrease compared to $36.3 million in the first quarter last year. |
|
|
• |
Unusual items that added $20.6 million in expenses in the quarter. Included were costs related to the pending transaction with Silver Lake and ValueAct Capital of $15.1 million, which are non-deductible for tax purposes, and $5.5 million predominantly related to the write-off of certain long-term assets related to an amended contract with an information technology outsourcing client. These expenses reduced first-quarter diluted earnings per share by $.24. |
|
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• |
Diluted loss per share of $.15, compared to diluted earnings per share of $.20 in the first quarter last year. |
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• |
Net loss of $11.5 million, compared to net earnings of $17.8 million in the first quarter of fiscal 2007. |
|
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• |
Operating cash flow of $39.1 million and negative free cash flow available to equity of $9.8 million. The free cash flow available to equity is a non-GAAP financial measure, and reconciliation to the comparable GAAP measure, operating cash flow, is attached to this press release. |
1
Acxiom in fiscal 2008 implemented a new organizational alignment with three operating divisions. First-quarter revenue by division was:
|
|
• |
Services Division: The division develops, sells and delivers industry-tailored solutions globally through the integration of products, services and consulting. Revenue for the quarter was $181.0 million, up 4 percent compared to the first quarter a year ago. |
|
|
• |
Information Products Division: The division develops and sells all global data products, including InfoBase® and Personicx®, as well as fraud and risk mitigation products sold in the U.S., including InsightIdentify. It focuses on product development, product lifecycle management, data content management and innovation. Revenue for the quarter was $96.7 million, a 2 percent increase over the same quarter last year. |
|
|
• |
Infrastructure Management Division: The division develops and delivers information technology products and services that improve a company’s ability to manage its information technology delivery platform at lower costs and higher efficiencies. Such offerings include traditional IT outsourcing and transformational solutions such as the Acxiom data factory. Revenue for the quarter was $113.5 million, down 6 percent from the same quarter last year. |
First Quarter Recognition
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• |
Computerworld magazine again named Acxiom one of the 100 Best Places to Work in Information Technology, the fourth time in the last six years the company has received the honor. Computerworld's rankings are based on a comprehensive questionnaire that assesses companies' benefits, diversity, career development, training programs and retention rates. |
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•
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Wells Fargo & Company named Acxiom the winner of the "First Choice" award as part of its Vendor Recognition Program. Acxiom was one of four business partners that Wells Fargo's Technology Information Group recognized during its annual vendor summit in April. |
About Acxiom Corporation
Acxiom Corporation (NASDAQ: ACXM; www.acxiom.com) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration (CDI) technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom is headquartered in Little Rock, Ark., with locations throughout the United States and Europe, and in Australia, China, and Canada. For more information, visit www.acxiom.com.
Acxiom is a registered trademark of Acxiom Corporation.
This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially. Such statements may include but are not necessarily limited to the following: that we expect to remain focused on improving operating results, that we are advancing the acquisition process with ValueAct Capital and Silver Lake and that we continue to believe that completing the anticipated transaction is in the best interest of Acxiom and all of its constituents. The following are important factors, among others, that could cause actual results to differ materially from these forward-looking statements: The possibility
2
that certain contracts may not be closed, or may not be closed within the anticipated time frames; the possibility that the anticipated transaction may not be closed, or may not be closed within the anticipated time frames; the possibility that clients may attempt to reduce the amount of business they do with the Company; the possibility that in the event of a change of control of the Company that certain of the clients of the Company would invoke certain provisions in their contracts resulting in a decline in the revenue and profit of the Company; the possibility that certain contracts may not generate the anticipated revenue or profitability; the possibility that negative changes in economic or other conditions might lead to a reduction in demand for our products and services; the possibility of an economic slowdown or that economic conditions in general will not be as expected; the possibility that the historical seasonality of our business may change; the possibility that significant customers may experience extreme, severe economic difficulty; the possibility that the integration of acquired businesses may not be as successful as planned; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that sales cycles may lengthen; the possibility that we may not be able to attract and retain qualified technical and leadership associates, or that we may lose key associates to other organizations; the possibility that we won’t be able to properly motivate our sales force or other associates; the possibility that we won’t be able to achieve cost reductions and avoid unanticipated costs; the possibility that we won’t be able to continue to receive credit upon satisfactory terms and conditions; the possibility that competent, competitive products, technologies or services will be introduced into the marketplace by other companies; the possibility that we may be subjected to pricing pressure due to market conditions and/or competitive products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the Company; the possibility that changes in accounting pronouncements may occur and may impact these projections; the possibility that we won’t be able to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; the possibility that we may encounter difficulties when entering new markets or industries; the possibility that there will be changes in the legislative, accounting, regulatory and consumer environments affecting our business, including but not limited to litigation, legislation, regulations and customs relating to our ability to collect, manage, aggregate and use data; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services; the possibility that we may enter into short-term contracts which would affect the predictability of our revenues; the possibility that the amount of ad hoc, volume-based and project work will not be as expected; the possibility that we may experience a loss of data center capacity or interruption of telecommunication links or power sources; the possibility that we may experience failures or breaches of our network and data security systems, leading to potential adverse publicity, negative customer reaction, or liability to third parties; the possibility that postal rates may increase, thereby leading to reduced volumes of business; the possibility that our clients may cancel or modify their agreements with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that we experience processing errors which result in credits to customers, re-performance of services or payment of damages to customers; the possibility that the services of the United States Postal Service, their global counterparts and other delivery systems may be disrupted; and the possibility that we may be affected by other competitive factors.
Other factors are detailed from time to time in our periodic reports and registration statements filed with the United States Securities and Exchange Commission. We believe that we have 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
3
by a number of factors, including those discussed above, all of which are inherently difficult to forecast.
We undertake no obligation to update the information contained in this press release or any other forward-looking statement.
Acxiom, InfoBase and Personicx are registered trademarks of Acxiom Corporation.
4
|
ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
|
(Unaudited) | ||||||||||
|
(Dollars in thousands, except earnings per share) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended | |||||
|
|
|
|
|
|
June 30, | |||||
|
|
|
|
|
|
|
|
|
|
$ |
% |
|
|
|
|
|
|
2007 |
|
2006 |
|
Variance |
Variance |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Services |
|
|
|
|
264,735 |
|
261,892 |
|
2,843 |
1.1% |
|
Data |
|
|
|
|
73,433 |
|
74,813 |
|
(1,380) |
(1.8%) |
|
Total revenue |
|
|
|
338,168 |
|
336,705 |
|
1,463 |
0.4% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
| ||
|
Cost of revenue |
|
|
|
|
|
|
|
|
| |
|
Services |
|
|
|
212,086 |
|
196,073 |
|
16,013 |
8.2% | |
|
Data |
|
|
|
|
53,885 |
|
49,572 |
|
4,313 |
8.7% |
|
Total cost of revenue |
|
|
265,971 |
|
245,645 |
|
20,326 |
8.3% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Services gross margin |
|
|
19.9% |
|
25.1% |
|
|
| ||
|
Data gross margin |
|
|
|
26.6% |
|
33.7% |
|
|
| |
|
Total gross margin |
|
|
|
21.3% |
|
27.0% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
52,669 |
|
54,745 |
|
(2,076) |
(3.8%) | |||
|
Gains, losses and other items, net |
|
15,390 |
|
- |
|
15,390 |
100.0% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
|
334,030 |
|
300,390 |
|
33,640 |
11.2% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
4,138 |
|
36,315 |
|
(32,177) |
(88.6%) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
| ||
|
Interest expense |
|
|
|
(13,575) |
|
(7,769) |
|
(5,806) |
74.7% | |
|
Other, net |
|
|
|
183 |
|
647 |
|
(464) |
(71.7%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(13,392) |
|
(7,122) |
|
(6,270) |
88.0% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
(9,254) |
|
29,193 |
|
(38,447) |
(131.7%) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
|
2,267 |
|
11,385 |
|
(9,118) |
(80.1%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
|
|
(11,521) |
|
17,808 |
|
(29,329) |
(164.7%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
(0.15) |
|
0.20 |
|
(0.35) |
(175.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
(0.15) |
|
0.20 |
|
(0.35) |
(175.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
|
(Unaudited) | ||||||||||
|
(Dollars in thousands, except earnings per share) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
$ |
% |
|
|
|
|
|
|
2007 |
|
2007 |
|
Variance |
Variance |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Services |
|
|
|
|
264,735 |
|
267,314 |
|
(2,579) |
(1.0%) |
|
Data |
|
|
|
|
73,433 |
|
89,957 |
|
(16,524) |
(18.4%) |
|
Total revenue |
|
|
|
338,168 |
|
357,271 |
|
(19,103) |
(5.3%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
| ||
|
Cost of revenue |
|
|
|
|
|
|
|
|
| |
|
Services |
|
|
|
212,086 |
|
209,830 |
|
2,256 |
1.1% | |
|
Data |
|
|
|
|
53,885 |
|
52,991 |
|
894 |
1.7% |
|
Total cost of revenue |
|
|
265,971 |
|
262,821 |
|
3,150 |
1.2% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Services gross margin |
|
|
19.9% |
|
21.5% |
|
|
| ||
|
Data gross margin |
|
|
|
26.6% |
|
41.1% |
|
|
| |
|
Total gross margin |
|
|
|
21.3% |
|
26.4% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
52,669 |
|
56,031 |
|
(3,362) |
(6.0%) | |||
|
Gains, losses and other items, net |
|
15,390 |
|
9,122 |
|
6,268 |
68.7% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
|
334,030 |
|
327,974 |
|
6,056 |
1.8% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
4,138 |
|
29,297 |
|
(25,159) |
(85.9%) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
| ||
|
Interest expense |
|
|
|
(13,575) |
|
(15,002) |
|
1,427 |
(9.5%) | |
|
Other, net |
|
|
|
183 |
|
1,444 |
|
(1,261) |
(87.3%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(13,392) |
|
(13,558) |
|
166 |
(1.2%) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
(9,254) |
|
15,739 |
|
(24,993) |
(158.8%) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
|
2,267 |
|
9,468 |
|
(7,201) |
(76.1%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
|
|
(11,521) |
|
6,271 |
|
(17,792) |
(283.7%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
(0.15) |
|
0.08 |
|
(0.23) |
(287.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
(0.15) |
|
0.08 |
|
(0.23) |
(287.5%) |
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||
|
CALCULATION OF EARNINGS PER SHARE | |||||||||
|
(Unaudited) | |||||||||
|
(In thousands, except earnings per share) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
March 31, |
|
|
|
|
|
|
2007 |
|
2006 |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Numerator - net earnings (loss) |
|
|
(11,521) |
|
17,808 |
|
6,271 | ||
|
|
|
|
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding |
79,341 |
|
88,155 |
|
78,385 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
|
(0.15) |
|
0.20 |
|
0.08 | ||
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Numerator - net earnings (loss) |
|
|
(11,521) |
|
17,808 |
|
6,271 | ||
|
|
|
|
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding |
79,341 |
|
88,155 |
|
78,385 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of common stock options, warrants and restricted stock |
- |
|
2,268 |
|
1,750 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79,341 |
|
90,423 |
|
80,135 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
|
(0.15) |
|
0.20 |
|
0.08 | |||
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||
|
RESULTS BY SEGMENT | |||||||
|
(Unaudited) | |||||||
|
(Dollars in thousands) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
Revenue: |
|
|
|
|
2007 |
|
2006 |
|
|
|
|
|
|
|
|
|
|
Information services |
|
|
|
181,045 |
|
173,685 | |
|
Information products |
|
|
|
96,678 |
|
94,968 | |
|
Infrastructure management |
|
|
113,520 |
|
120,491 | ||
|
Eliminations |
|
|
|
(53,075) |
|
(52,439) | |
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
|
338,168 |
|
336,705 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations: |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
Information services |
|
|
|
24,267 |
|
29,290 | |
|
Information products |
|
|
|
(5,684) |
|
(830) | |
|
Infrastructure management |
|
|
12,136 |
|
14,094 | ||
|
Corporate & other |
|
|
|
(26,581) |
|
(6,239) | |
|
|
|
|
|
|
|
|
|
|
Total income from operations |
|
|
4,138 |
|
36,315 | ||
|
|
|
|
|
|
|
|
|
|
Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information services |
|
|
|
13.4% |
|
16.9% | |
|
Information products |
|
|
|
-5.9% |
|
-0.9% | |
|
Infrastructure management |
|
|
10.7% |
|
11.7% | ||
|
|
|
|
|
|
|
|
|
|
Total margin |
|
|
|
1.2% |
|
10.8% | |
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||
|
DATA REVENUE AND COST OF DATA SUPPLEMENTAL SCHEDULE | |||||||||||||
|
(Unaudited) | |||||||||||||
|
(Dollars in thousands) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
$ |
% |
|
March 31, |
|
$ |
% |
|
|
|
|
2007 |
|
2006 |
|
Variance |
Variance |
|
2007 |
|
Variance |
Variance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data |
|
|
53,841 |
|
54,530 |
|
(689) |
(1.3%) |
|
69,596 |
|
(15,755) |
(22.6%) |
|
Passthrough data |
|
19,592 |
|
20,283 |
|
(691) |
(3.4%) |
|
20,361 |
|
(769) |
(3.8%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total data revenue |
|
73,433 |
|
74,813 |
|
(1,380) |
(1.8%) |
|
89,957 |
|
(16,524) |
(18.4%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of data revenue: |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Data |
|
|
34,293 |
|
29,289 |
|
5,004 |
17.1% |
|
32,630 |
|
1,663 |
5.1% |
|
Passthrough data |
|
19,592 |
|
20,283 |
|
(691) |
(3.4%) |
|
20,361 |
|
(769) |
(3.8%) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of data |
|
53,885 |
|
49,572 |
|
4,313 |
8.7% |
|
52,991 |
|
894 |
1.7% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data |
|
|
36.3% |
|
46.3% |
|
|
|
|
53.1% |
|
|
|
|
Passthrough data |
|
0.0% |
|
0.0% |
|
|
|
|
0.0% |
|
|
| |
|
Total data |
|
|
26.6% |
|
33.7% |
|
|
|
|
41.1% |
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | ||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
|
(Unaudited) | ||||||
|
(Dollars in thousands) | ||||||
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
$ |
% |
|
|
2007 |
|
2007 |
|
Variance |
Variance |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
61,379 |
|
37,776 |
|
23,603 |
62.5% |
|
Trade accounts receivable, net |
280,956 |
|
285,850 |
|
(4,894) |
(1.7%) |
|
Refundable income taxes |
8,374 |
|
7,657 |
|
717 |
9.4% |
|
Deferred income taxes |
22,318 |
|
22,341 |
|
(23) |
(0.1%) |
|
Other current assets |
56,114 |
|
59,252 |
|
(3,138) |
(5.3%) |
|
|
|
|
|
|
|
|
|
Total current assets |
429,141 |
|
412,876 |
|
16,265 |
3.9% |
|
|
|
|
|
|
|
|
|
Property and equipment |
748,957 |
|
733,175 |
|
15,782 |
2.2% |
|
Less - accumulated depreciation and amortization |
446,464 |
|
420,883 |
|
25,581 |
6.1% |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
302,493 |
|
312,292 |
|
(9,799) |
(3.1%) |
|
|
|
|
|
|
|
|
|
Software, net of accumulated amortization |
50,533 |
|
44,289 |
|
6,244 |
14.1% |
|
Goodwill |
522,279 |
|
522,046 |
|
233 |
0.0% |
|
Purchased software licenses, net of accumulated amortization |
145,368 |
|
151,326 |
|
(5,958) |
(3.9%) |
|
Unbilled and notes receivable, excluding current portions |
14,479 |
|
16,742 |
|
(2,263) |
(13.5%) |
|
Deferred costs, net |
136,184 |
|
137,684 |
|
(1,500) |
(1.1%) |
|
Data acquisition costs |
36,672 |
|
35,398 |
|
1,274 |
3.6% |
|
Other assets, net |
23,248 |
|
23,251 |
|
(3) |
(0.0%) |
|
|
|
|
|
|
|
|
|
|
1,660,397 |
|
1,655,904 |
|
4,493 |
0.3% |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Current installments of long-term obligations |
104,341 |
|
106,921 |
|
(2,580) |
(2.4%) |
|
Trade accounts payable |
62,034 |
|
54,808 |
|
7,226 |
13.2% |
|
Accrued payroll and related expenses |
26,562 |
|
33,663 |
|
(7,101) |
(21.1%) |
|
Other accrued expenses |
77,474 |
|
79,078 |
|
(1,604) |
(2.0%) |
|
Deferred revenue |
102,589 |
|
113,318 |
|
(10,729) |
(9.5%) |
|
|
|
|
|
|
|
|
|
Total current liabilities |
373,000 |
|
387,788 |
|
(14,788) |
(3.8%) |
|
|
|
|
|
|
|
|
|
Long-term obligations: |
|
|
|
|
|
|
|
Long-term debt and capital leases, net of current installments |
622,950 |
|
631,184 |
|
(8,234) |
(1.3%) |
|
Software and data licenses, net of current installments |
12,290 |
|
17,695 |
|
(5,405) |
(30.5%) |
|
|
|
|
|
|
|
|
|
Total long-term obligations |
635,240 |
|
648,879 |
|
(13,639) |
(2.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes |
96,726 |
|
97,926 |
|
(1,200) |
(1.2%) |
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Common stock |
11,331 |
|
11,145 |
|
186 |
1.7% |
|
Additional paid-in capital |
760,952 |
|
718,336 |
|
42,616 |
5.9% |
|
Retained earnings |
451,323 |
|
462,844 |
|
(11,521) |
(2.5%) |
|
Accumulated other comprehensive income |
20,365 |
|
17,526 |
|
2,839 |
16.2% |
|
Treasury stock, at cost |
(688,540) |
|
(688,540) |
|
0 |
0.0% |
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
555,431 |
|
521,311 |
|
34,120 |
6.5% |
|
|
|
|
|
|
|
|
|
|
1,660,397 |
|
1,655,904 |
|
4,493 |
0.3% |
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
|
(Unaudited) | |||
|
(Dollars in thousands) | |||
|
|
|
|
|
|
|
For the Three Months Ended | ||
|
|
|
|
|
|
|
June 30, | ||
|
|
|
|
|
|
|
2007 |
|
2006 |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net earnings |
(11,521) |
|
17,808 |
|
Non-cash operating activities: |
|
|
|
|
Depreciation and amortization |
59,102 |
|
59,047 |
|
Loss (gain) on disposal or impairment of assets, net |
310 |
|
(84) |
|
Deferred income taxes |
(1,226) |
|
(233) |
|
Non-cash stock compensation expense |
1,358 |
|
553 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
7,721 |
|
(1,796) |
|
Other assets |
(792) |
|
3,186 |
|
Accounts payable and other liabilities |
(3,097) |
|
(9,743) |
|
Deferred revenue |
(12,723) |
|
(12,388) |
|
Net cash provided by operating activities |
39,132 |
|
56,350 |
|
Cash flows from investing activities: |
|
|
|
|
Capitalized software |
(8,447) |
|
(5,719) |
|
Capital expenditures |
(2,867) |
|
(217) |
|
Cash collected from the sale and license of software |
- |
|
5,000 |
|
Deferral of costs |
(14,129) |
|
(16,887) |
|
Payments received from investments |
- |
|
783 |
|
Net cash paid in acquisitions |
(2,680) |
|
- |
|
Net cash used by investing activities |
(28,123) |
|
(17,040) |
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from debt |
2,127 |
|
28,873 |
|
Payments of debt |
(31,283) |
|
(67,866) |
|
Sale of common stock |
35,820 |
|
6,773 |
|
Acquisition of treasury stock |
- |
|
(11,965) |
|
Tax benefit of stock options exercised |
5,624 |
|
1,079 |
|
Net cash used by financing activities |
12,288 |
|
(43,106) |
|
Effect of exchange rate changes on cash |
307 |
|
254 |
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
23,604 |
|
(3,542) |
|
Cash and cash equivalents at beginning of period |
37,776 |
|
7,705 |
|
Cash and cash equivalents at end of period |
61,380 |
|
4,163 |
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
Cash paid (received) during the period for: |
|
|
|
|
Interest |
13,888 |
|
7,830 |
|
Income taxes |
115 |
|
5,268 |
|
Payments on capital leases and installment payment arrangements |
19,137 |
|
18,905 |
|
Payments on software and data license liabilities |
6,493 |
|
7,847 |
|
Other debt payments, excluding line of credit |
3,526 |
|
1,711 |
|
Revolving credit payments |
2,127 |
|
39,403 |
|
Noncash investing and financing activities: |
|
|
|
|
Acquisition of property and equipment under capital lease |
|
|
|
|
and installment payment arrangements |
7,222 |
|
19,426 |
|
Construction and other financing |
5,351 |
|
5,904 |
|
Software licenses and maintenance acquired under software obligation |
- |
|
15,266 |
|
ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||
|
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY | ||||||||
|
AND RECONCILIATION TO OPERATING CASH FLOW | ||||||||
|
(Unaudited) | ||||||||
|
(Dollars in thousands) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/06 |
09/30/06 |
12/31/06 |
03/31/07 |
YTD FY2007 |
|
06/30/07 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
56,350 |
64,409 |
62,659 |
76,534 |
259,952 |
|
39,132 | |
|
|
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
| |
|
|
Payments received from investments |
783 |
1,925 |
- |
50 |
2,758 |
|
- |
|
Less: |
|
|
|
|
|
|
| |
|
|
Capitalized software |
(5,719) |
(6,926) |
(6,798) |
(8,000) |
(27,443) |
|
(8,447) |
|
|
Capital expenditures |
(217) |
(3,260) |
(2,518) |
(8,230) |
(14,225) |
|
(2,867) |
|
|
Deferral of costs |
(16,887) |
(16,559) |
(16,149) |
(17,092) |
(66,687) |
|
(14,129) |
|
|
Payments on capital leases and installment payment arrangements |
(18,905) |
(21,951) |
(16,700) |
(18,579) |
(76,135) |
|
(19,137) |
|
|
Payments on software and data license liabilities |
(7,847) |
(7,304) |
(6,000) |
(5,746) |
(26,897) |
|
(6,493) |
|
|
Other required debt payments |
(1,711) |
(1,804) |
(3,117) |
(3,603) |
(10,235) |
|
(3,526) |
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
5,847 |
8,530 |
11,377 |
15,334 |
41,088 |
|
(15,467) | |
|
|
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
| |
|
|
Tax benefit of stock options and warrants |
1,079 |
1,765 |
1,237 |
61 |
4,142 |
|
5,624 |
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
6,926 |
10,295 |
12,614 |
15,395 |
45,230 |
|
(9,843) | |
|
|
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
| |
|
|
Cash collected from sale of software |
5,000 |
5,000 |
- |
- |
10,000 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total |
11,926 |
15,295 |
12,614 |
15,395 |
55,230 |
|
(9,843) | |
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
|
|
(Unaudited) | |||||||||||||
|
|
(Dollars in thousands, except earnings per share) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 FY07 to Q1 FY08 |
|
Q4 FY07 to Q1 FY08 | ||
|
|
|
06/30/06 |
09/30/06 |
12/31/06 |
03/31/07 |
FY2007 |
|
06/30/07 |
|
% |
$ |
|
% |
$ |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Services |
261,892 |
266,099 |
265,798 |
267,314 |
1,061,103 |
|
264,735 |
|
1.1% |
2,843 |
|
-1.0% |
(2,579) |
|
|
Data |
74,813 |
82,220 |
87,043 |
89,957 |
334,033 |
|
73,433 |
|
-1.8% |
(1,380) |
|
-18.4% |
(16,524) |
|
|
Total revenue |
336,705 |
348,319 |
352,841 |
357,271 |
1,395,136 |
|
338,168 |
|
0.4% |
1,463 |
|
-5.3% |
(19,103) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
196,073 |
201,384 |
199,704 |
209,830 |
806,991 |
|
212,086 |
|
8.2% |
16,013 |
|
1.1% |
2,256 |
|
|
Data |
49,572 |
51,062 |
53,004 |
52,991 |
206,629 |
|
53,885 |
|
8.7% |
4,313 |
|
1.7% |
894 |
|
|
Total cost of revenue |
245,645 |
252,446 |
252,708 |
262,821 |
1,013,620 |
|
265,971 |
|
8.3% |
20,326 |
|
1.2% |
3,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
54,745 |
54,008 |
49,065 |
56,031 |
213,849 |
|
52,669 |
|
-3.8% |
(2,076) |
|
-6.0% |
(3,362) |
|
|
Gains, losses and other items, net |
0 |
0 |
(225) |
9,122 |
8,897 |
|
15,390 |
|
- |
15,390 |
|
68.7% |
6,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
300,390 |
306,454 |
301,548 |
327,974 |
1,236,366 |
|
334,030 |
|
11.2% |
33,640 |
|
1.8% |
6,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
36,315 |
41,865 |
51,293 |
29,297 |
158,770 |
|
4,138 |
|
-88.6% |
(32,177) |
|
-85.9% |
(25,159) |
|
|
% Margin |
10.8% |
12.0% |
14.5% |
8.2% |
11.4% |
|
1.2% |
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(7,769) |
(8,950) |
(14,911) |
(15,002) |
(46,632) |
|
(13,575) |
|
74.7% |
(5,806) |
|
-9.5% |
1,427 |
|
|
Other, net |
647 |
2,685 |
1,157 |
1,444 |
5,933 |
|
183 |
|
-71.7% |
(464) |
|
-87.3% |
(1,261) |
|
|
Total other income (expense) |
(7,122) |
(6,265) |
(13,754) |
(13,558) |
(40,699) |
|
(13,392) |
|
88.0% |
(6,270) |
|
-1.2% |
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
29,193 |
35,600 |
37,539 |
15,739 |
118,071 |
|
(9,254) |
|
-131.7% |
(38,447) |
|
-158.8% |
(24,993) |
|
|
Income taxes |
11,385 |
13,884 |
12,594 |
9,468 |
47,331 |
|
2,267 |
|
-80.1% |
(9,118) |
|
-76.1% |
(7,201) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
17,808 |
21,716 |
24,945 |
6,271 |
70,740 |
|
(11,521) |
-164.7% |
(29,329) |
|
-283.7% |
(17,792) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
0.20 |
0.25 |
0.31 |
0.08 |
0.84 |
|
(0.15) |
-175.0% |
(0.35) |
|
-287.5% |
(0.23) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS - INTERNAL FORMAT | |||||||||||||
|
(Unaudited) | |||||||||||||
|
(Dollars in thousands, except earnings per share) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 FY07 to Q1 FY08 |
|
Q4 FY07 to Q1 FY08 | ||
|
|
06/30/06 |
09/30/06 |
12/31/06 |
03/31/07 |
FY2007 |
|
06/30/07 |
|
% |
$ |
|
% |
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
336,705 |
348,319 |
352,841 |
357,271 |
1,395,136 |
|
338,168 |
|
0.4% |
1,463 |
|
-5.3% |
(19,103) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
135,917 |
139,557 |
139,724 |
154,801 |
569,999 |
|
148,739 |
|
9.4% |
12,822 |
|
-3.9% |
(6,062) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computer, communications and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equipment |
73,119 |
72,685 |
71,132 |
73,409 |
290,345 |
|
72,444 |
|
-0.9% |
(675) |
|
-1.3% |
(965) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data costs |
43,372 |
44,196 |
43,761 |
42,569 |
173,898 |
|
42,518 |
|
-2.0% |
(854) |
|
-0.1% |
(51) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating costs and expenses |
47,982 |
50,016 |
47,156 |
48,071 |
193,225 |
|
54,939 |
|
14.5% |
6,957 |
|
14.3% |
6,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains, losses and other items, net |
- |
- |
(225) |
9,122 |
8,897 |
|
15,390 |
|
- |
15,390 |
|
68.7% |
6,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
300,390 |
306,454 |
301,548 |
327,972 |
1,236,364 |
|
334,030 |
|
11.2% |
33,640 |
|
1.8% |
6,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
36,315 |
41,865 |
51,293 |
29,299 |
158,772 |
|
4,138 |
|
-88.6% |
(32,177) |
|
-85.9% |
(25,161) |
|
Operating Margin |
10.8% |
12.0% |
14.5% |
8.2% |
11.4% |
|
1.2% |
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(7,769) |
(8,950) |
(14,911) |
(15,002) |
(46,632) |
|
(13,575) |
|
74.7% |
(5,806) |
|
-9.5% |
1,427 |
|
Other, net |
647 |
2,685 |
1,157 |
1,444 |
5,933 |
|
183 |
|
-71.7% |
(464) |
|
-87.3% |
(1,261) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
(7,122) |
(6,265) |
(13,754) |
(13,558) |
(40,699) |
|
(13,392) |
|
88.0% |
(6,270) |
|
-1.2% |
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
29,193 |
35,600 |
37,539 |
15,741 |
118,073 |
|
(9,254) |
|
-131.7% |
(38,447) |
|
-158.8% |
(24,995) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
11,385 |
13,884 |
12,594 |
9,468 |
47,331 |
|
2,267 |
|
-80.1% |
(9,118) |
|
-76.1% |
(7,201) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
17,808 |
21,716 |
24,945 |
6,273 |
70,742 |
|
(11,521) |
|
-164.7% |
(29,329) |
|
-283.7% |
(17,794) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
0.20 |
0.25 |
0.31 |
0.08 |
0.84 |
|
(0.15) |
|
-175.0% |
(0.35) |
|
-287.5% |
(0.23) |
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||
|
|
MARGIN ANALYSIS | |||||||||||||
|
|
(Unaudited) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 FY07 to Q1 FY08 |
|
Q4 FY07 to Q1 FY08 | ||
|
|
|
06/30/06 |
09/30/06 |
12/31/06 |
03/31/07 |
FY2007 |
|
06/30/07 |
|
% |
$ |
|
% |
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
91,060 |
95,873 |
100,133 |
94,450 |
381,516 |
|
72,197 |
|
-20.7% |
(18,863) |
|
-23.6% |
(22,253) |
|
|
Gross margin |
27.0% |
27.5% |
28.4% |
26.4% |
27.3% |
|
21.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
10.8% |
12.0% |
14.5% |
8.2% |
11.4% |
|
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services gross profit |
65,819 |
64,715 |
66,094 |
57,484 |
254,112 |
|
52,649 |
|
-20.0% |
(13,170) |
|
-8.4% |
(4,835) |
|
|
Services gross margin |
25.1% |
24.3% |
24.9% |
21.5% |
23.9% |
|
19.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data gross profit |
25,241 |
31,158 |
34,039 |
36,966 |
127,404 |
|
19,548 |
|
-22.6% |
(5,693) |
|
-47.1% |
(17,418) |
|
|
Data gross margin |
33.7% |
37.9% |
39.1% |
41.1% |
38.1% |
|
26.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES | |||||||
|
EXPENSE TREND ANALYSIS | |||||||
|
(Unaudited) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/06 |
09/30/06 |
12/31/06 |
03/31/07 |
FY2007 |
|
06/30/07 |
|
|
|
|
|
|
|
|
|
|
Salaries and benefits % of revenue |
40.4% |
40.1% |
39.6% |
43.3% |
40.9% |
|
44.0% |
|
|
|
|
|
|
|
|
|
|
Computer, communications and other |
|
|
|
|
|
|
|
|
equipment % of revenue |
21.7% |
20.9% |
20.2% |
20.5% |
20.8% |
|
21.4% |
|
|
|
|
|
|
|
|
|
|
Data costs % of revenue |
12.9% |
12.7% |
12.4% |
11.9% |
12.5% |
|
12.6% |
|
|
|
|
|
|
|
|
|
|
Other operating costs and expenses % of revenue |
14.3% |
14.4% |
13.4% |
13.5% |
13.8% |
|
16.2% |
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses % of revenue |
89.2% |
88.0% |
85.5% |
91.8% |
88.6% |
|
98.8% |
|
|
|
|
|
|
|
|
|
|
SG&A % of revenue |
16.3% |
15.5% |
13.9% |
15.7% |
15.3% |
|
15.6% |
|
|
|
|
|
|
|
|
|