Acxiom Announces Third Quarter Fiscal Year 2010 Results

Acxiom^® Corporation (Nasdaq: ACXM), a global leader in interactive marketing, today announced financial results for the third quarter of fiscal year 2010 ended December 31, 2009. Acxiom will hold a conference call at 10:00 a.m. CST today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com.

John Meyer, Acxiom’s chief executive officer and president, said, "We stated last quarter that we expected operating income performance in the second half of the year to improve over the first half. Based on our third-quarter performance and historical seasonality patterns for fourth-quarter performance, we still expect to see significant improvement in operating income in the second half of the fiscal year.”

Meyer continued, "Despite another challenging period for us versus the prior-year quarter, we have seen a stabilization in client spending which, combined with aggressive sales initiatives, has led to increased sequential revenue for the second consecutive quarter. Our continued focus on cost management positively impacted both our operating income and operating margins. These initiatives, aided by management of our working capital, contributed to another strong quarter of operating cash flow.”

Third Quarter 2010 Highlights:

• Earnings per diluted share of $0.18 in the third quarter of fiscal 2010, compared to loss per diluted share of $0.15 in the third quarter of fiscal 2009. The prior year results included $0.36 in unusual items. Excluding the effect of the unusual items, diluted earnings per share in the prior-year period were $0.21.
• Income from operations of $29.9 million in the current-year third quarter, compared to loss from operations of $8.6 million in the third quarter last year. The prior-year loss from operations included $43.2 million in unusual loss items. Before the effect of the unusual loss items income from operations for the prior-year third quarter would have been $34.6 million.
• Revenue of $283.8 million in the current quarter, compared to $301.0 million, excluding an Information Products pass-through contract (approximately $20.1 million), in the third quarter a year ago. GAAP revenue, including the pass-through revenue in the prior quarter, was $321.1 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.
• Operating cash flow of $74.5 million compared to $78.9 million in the third quarter a year ago.
• Free cash flow available to equity of $49.0 million, compared to $46.8 million in the third quarter a year ago. Free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.

Operational Highlights:

• Information Services: Revenue for the quarter was $218.3 million, compared to $231.1 million in the third quarter of the previous year. Income from operations for the quarter was $27.6 million, compared to $30.4 million in the third quarter of fiscal 2009.
• Information Products: Revenue for the quarter was $65.5 million, compared with $69.9 million, excluding the pass-through revenue of approximately $20.1 million from the Information Products contract referenced above, in the third quarter a year ago. GAAP revenue, including the pass-through revenue in the prior quarter, was $90.0 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract. Income from operations for the quarter was $2.8 million, compared to income from operations of $4.2 million in the third quarter of the previous year.

Income from operations includes expenses that had previously been included in corporate and other expenses. The Company now allocates selling, general and administrative expenses previously included in corporate and other expenses to the two operating segments, Information Services and Information Products. Prior-year results have been reclassified to reflect the change.

Fiscal Year 2010 Year-To-Date Highlights:

• Earnings per diluted share of $0.35 for the current year nine-month period compared to earnings per diluted share of $0.19 in the comparable nine-month period last year. Excluding unusual loss items of $0.33, diluted earnings per share for the nine-month period of fiscal 2009 were $0.52.
• Income from operations of $63.6 million for the first nine months of fiscal year 2010, compared to $51.3 million in the comparable nine-month period of fiscal 2009. Income from operations for the prior year, excluding unusual loss items of $40.3 million, was $91.5 million.
• Revenue of $810.9 million in the current nine-month period, compared to $917.2 million, excluding revenue from an Information Products pass-through contract of approximately $63.8 million in the prior year. GAAP revenue, including the pass-through revenues in the prior year, was $981.1 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.
• Operating cash flow of $151.4 million in the current fiscal year nine-month period compared to $194.2 million in the prior year nine-month period.
• Free cash flow available to equity of $65.2 million for the nine months ended December 31, 2009. For the nine-month period ended December 31, 2008 free cash flow available to equity was $108.7 million, including unusual and one-time items of $26.8 million, including $24.2 million in proceeds received from the sale of company-owned real estate. Free cash flow available to equity is a non-GAAP financial measure; reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.

Web Link to Financials

You may link to http://www.acxiom.com/FY10_Q3_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

A global leader in interactive marketing services and infrastructure management, Acxiom connects clients with their customers through deep customer insight, powering effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration and consulting solutions for effective marketing across digital, Internet, email, mobile and direct mail channels. Our secure, high-performance technology services deliver consistent value and reliability. Founded in 1969, Acxiom is headquartered in Little Rock, Ark., and serves clients around the world from locations in the United States, Europe, Middle East and Asia-Pacific. For more information about Acxiom, visit www.acxiom.com.

Forward Looking Statements

This release and today’s conference call may contain forward-looking statements including, without limitation, statements regarding the anticipated improvements in operating income in the second half of our fiscal year. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce the amount of business they do 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 may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates to other organizations; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our 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 the historical seasonality of our business may change; the possibility that we will not be able to achieve cost reductions and avoid unanticipated costs; 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 changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual report on Form 10-K, particularly the discussion under the caption "Item 1A, RISK FACTORS” in our Annual Report on Form 10-K for the year ended March 31, 2009, which was filed with the Securities and Exchange Commission on May 29, 2009.

With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.

We undertake no obligation to update the information contained in this press release or any other forward-looking statement.

Acxiom is a registered trademark of Acxiom Corporation.

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
			For the Three Months Ended
			December 31,
											$				%
			2009				2008				Variance				Variance
Revenue:
Services			218,340				231,077				(12,737	)			(5.5	%)
Products			65,467				89,979				(24,512	)			(27.2	%)
Total revenue			283,807				321,056				(37,249	)			(11.6	%)
Operating costs and expenses:
Cost of revenue
Services			163,206				173,433				10,227				5.9	%
Products			46,727				70,487				23,760				33.7	%
Total cost of revenue			209,933				243,920				33,987				13.9	%
Services gross margin			25.3	%			24.9	%
Products gross margin			28.6	%			21.7	%
Total gross margin			26.0	%			24.0	%
Selling, general and administrative			43,477				42,560				(917	)			(2.2	%)
Gains, losses and other items, net			538				43,175				42,637				98.8	%
Total operating costs and expenses			253,948				329,655				75,707				23.0	%
Income from operations			29,859				(8,599	)			38,458				447.2	%
Other income (expense):
Interest expense			(5,687	)			(8,105	)			2,418				29.8	%
Other, net			198				140				58				41.4	%
Total other income (expense)			(5,489	)			(7,965	)			2,476				31.1	%
Earnings (loss) before income taxes			24,370				(16,564	)			40,934				247.1	%
Income taxes			10,212				(5,115	)			(15,327	)			(299.6	%)
Net earnings (loss)			14,158				(11,449	)			25,607				223.7	%
Less: Net earnings (loss) attributable to noncontrolling interest			(104	)			-				(104	)			-
Net earnings (loss) attributable to Acxiom			14,262				(11,449	)			25,711				224.6	%
Earnings (loss) per share:
Basic			0.18				(0.15	)			0.33				220.0	%
Diluted			0.18				(0.15	)			0.33				220.0	%
Earnings (loss) per share attributable to Acxiom stockholders:
Basic			0.18				(0.15	)			0.33				220.0	%
Diluted			0.18				(0.15	)			0.33				220.0	%

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
			For the Nine Months Ended
			December 31,
											$				%
			2009				2008				Variance				Variance
Revenue:
Services			627,879				701,377				(73,498	)			(10.5	%)
Products			183,014				279,687				(96,673	)			(34.6	%)
Total revenue			810,893				981,064				(170,171	)			(17.3	%)
Operating costs and expenses:
Cost of revenue
Services			488,574				533,280				44,706				8.4	%
Products			138,775				225,242				86,467				38.4	%
Total cost of revenue			627,349				758,522				131,173				17.3	%
Services gross margin			22.2	%			24.0	%
Products gross margin			24.2	%			19.5	%
Total gross margin			22.6	%			22.7	%
Selling, general and administrative			119,084				131,030				11,946				9.1	%
Gains, losses and other items, net			858				40,260				39,402				97.9	%
Total operating costs and expenses			747,291				929,812				182,521				19.6	%
Income from operations			63,602				51,252				12,350				24.1	%
Other income (expense):
Interest expense			(16,615	)			(26,155	)			9,540				36.5	%
Other, net			303				1,786				(1,483	)			(83.0	%)
Total other income (expense)			(16,312	)			(24,369	)			8,057				33.1	%
Earnings before income taxes			47,290				26,883				20,407				75.9	%
Income taxes			19,493				11,829				(7,664	)			(64.8	%)
Net earnings			27,797				15,054				12,743				84.6	%
Less: Net earnings attributable to noncontrolling interest			(104	)			-				(104	)			-
Net earnings attributable to Acxiom			27,901				15,054				12,847				85.3	%
Earnings per share:
Basic			0.35				0.19				0.16				84.2	%
Diluted			0.35				0.19				0.16				84.2	%
Earnings per share attributable to Acxiom stockholders:
Basic			0.35				0.19				0.16				84.2	%
Diluted			0.35				0.19				0.16				84.2	%

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
			For the Three Months Ended
			December 31,			December 31,
			2009			2008
Basic earnings per share:
Numerator - net earnings (loss)			14,158			(11,449	)
Denominator - weighted-average shares outstanding			79,068			78,086
Basic earnings (loss) per share			0.18			(0.15	)
Diluted earnings per share:
Numerator - net earnings (loss)			14,158			(11,449	)
Denominator - weighted-average shares outstanding			79,068			78,086
Dilutive effect of common stock options, warrants and restricted stock			802			-
			79,870			78,086
Diluted earnings (loss) per share			0.18			(0.15	)
Basic earnings per share attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom			14,262			(11,449	)
Denominator - weighted-average shares outstanding			79,068			78,086
Basic earnings (loss) per share attributable to Acxiom stockholders			0.18			(0.15	)
Diluted earnings per share attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom			14,262			(11,449	)
Denominator - weighted-average shares outstanding			79,068			78,086
Dilutive effect of common stock options, warrants and restricted stock			802			-
			79,870			78,086
Diluted earnings (loss) per share attributable to Acxiom stockholders			0.18			(0.15	)

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
			For the Nine Months Ended
			December 31,			December 31,
			2009			2008
Basic earnings per share:
Numerator - net earnings			27,797			15,054
Denominator - weighted-average shares outstanding			78,883			77,735
Basic earnings per share			0.35			0.19
Diluted earnings per share:
Numerator - net earnings			27,797			15,054
Denominator - weighted-average shares outstanding			78,883			77,735
Dilutive effect of common stock options, warrants and restricted stock			537			345
			79,420			78,080
Diluted earnings per share			0.35			0.19
Basic earnings per share attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom			27,901			15,054
Denominator - weighted-average shares outstanding			78,883			77,735
Basic earnings per share attributable to Acxiom stockholders			0.35			0.19
Diluted earnings per share attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom			27,901			15,054
Denominator - weighted-average shares outstanding			78,883			77,735
Dilutive effect of common stock options, warrants and restricted stock			537			345
			79,420			78,080
Diluted earnings per share attributable to Acxiom stockholders			0.35			0.19

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			December 31,				December 31,
Revenue:			2009				2008
Information services			218,340				231,077
Information products			65,467				89,979
Total revenue			283,807				321,056
Income from operations:
Information services			27,565				30,358
Information products			2,832				4,218
Other			(538	)			(43,175	)
Total income from operations			29,859				(8,599	)
Margin:
Information services			12.6	%			13.1	%
Information products			4.3	%			4.7	%
Total margin			10.5	%			-2.7	%

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
			For the Nine Months Ended
			December 31,				December 31,
Revenue:			2009				2008
Information services			627,879				701,377
Information products			183,014				279,687
Total revenue			810,893				981,064
Income from operations:
Information services			63,374				84,524
Information products			1,086				6,988
Other			(858	)			(40,260	)
Total income from operations			63,602				51,252
Margin:
Information services			10.1	%			12.1	%
Information products			0.6	%			2.5	%
Total margin			7.8	%			5.2	%

ACXIOM CORPORATION AND SUBSIDIARIES
PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			December 31,				December 31,				$				%
			2009				2008				Variance				Variance
Products			65,467				69,892				(4,425	)			(6.3	%)
Passthrough data			-				20,087				(20,087	)			(100.0	%)
Total products revenue			65,467				89,979				(24,512	)			(27.2	%)
Cost of products revenue:
Products			46,727				50,400				3,673				7.3	%
Passthrough data			-				20,087				20,087				100.0	%
Total cost of products			46,727				70,487				23,760				33.7	%
Margin:
Products			28.6	%			27.9	%
Passthrough data			-				0.0	%
Total products			28.6	%			21.7	%

ACXIOM CORPORATION AND SUBSIDIARIES
PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
			For the Nine Months Ended
			December 31,				December 31,				$				%
			2009				2008				Variance				Variance
Products			183,014				215,838				(32,824	)			(15.2	%)
Passthrough data			-				63,849				(63,849	)			(100.0	%)
Total products revenue			183,014				279,687				(96,673	)			(34.6	%)
Cost of products revenue:
Products			138,775				161,393				22,618				14.0	%
Passthrough data			-				63,849				63,849				100.0	%
Total cost of products			138,775				225,242				86,467				38.4	%
Margin:
Products			24.2	%			25.2	%
Passthrough data			-				0.0	%
Total products			24.2	%			19.5	%

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
			December 31,				March 31,				$				%
			2009				2009				Variance				Variance
Assets
Current assets:
Cash and cash equivalents			200,582				177,166				23,416				13.2	%
Trade accounts receivable, net			180,546				184,814				(4,268	)			(2.3	%)
Refundable income taxes			-				4,579				(4,579	)			(100.0	%)
Deferred income taxes			45,481				45,641				(160	)			(0.4	%)
Other current assets			46,042				46,873				(831	)			(1.8	%)
Total current assets			472,651				459,073				13,578				3.0	%
Property and equipment			797,029				745,999				51,030				6.8	%
Less - accumulated depreciation and amortization			576,050				531,410				44,640				8.4	%
Property and equipment, net			220,979				214,589				6,390				3.0	%
Software, net of accumulated amortization			43,077				52,798				(9,721	)			(18.4	%)
Goodwill			474,597				454,944				19,653				4.3	%
Purchased software licenses, net of accumulated amortization			51,499				65,341				(13,842	)			(21.2	%)
Deferred costs, net			71,512				70,343				1,169				1.7	%
Data acquisition costs			24,871				31,317				(6,446	)			(20.6	%)
Other assets, net			18,366				18,938				(572	)			(3.0	%)
			1,377,552				1,367,343				10,209				0.7	%
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt			41,485				40,967				518				1.3	%
Trade accounts payable			23,575				27,701				(4,126	)			(14.9	%)
Accrued payroll and related expenses			28,105				44,823				(16,718	)			(37.3	%)
Other accrued expenses			85,769				86,072				(303	)			(0.4	%)
Deferred revenue			57,426				54,991				2,435				4.4	%
Income taxes			121				-				121				-
Total current liabilities			236,481				254,554				(18,073	)			(7.1	%)
Long-term debt			483,846				537,272				(53,426	)			(9.9	%)
Deferred income taxes			79,505				58,526				20,979				35.8	%
Other liabilities			10,588				9,321				1,267				13.6	%
Stockholders' equity:
Common stock			11,625				11,576				49				0.4	%
Additional paid-in capital			810,236				800,094				10,142				1.3	%
Retained earnings			469,851				441,950				27,901				6.3	%
Accumulated other comprehensive income			9,638				(6,238	)			15,876				(254.5	%)
Treasury stock, at cost			(738,601	)			(739,712	)			1,111				(0.2	%)
Total Acxiom stockholders' equity			562,749				507,670				55,079				(2	)
Noncontrolling interest			4,383				-				4,383				-
Total equity			567,132				507,670				59,462				11.7	%
			1,377,552				1,367,343				10,209				0.7	%

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			December 31,
			2009				2008
Cash flows from operating activities:
Net earnings (loss)			14,158				(11,449	)
Non-cash operating activities:
Depreciation and amortization			43,170				49,677
Loss on disposal or impairment of assets, net			403				25,896
Deferred income taxes			14,381				(2,784	)
Non-cash stock compensation expense			2,638				1,807
Changes in operating assets and liabilities:
Accounts receivable			1,814				1,958
Other assets			8,452				(6,940	)
Deferred costs			(12,037	)			(918	)
Accounts payable and other liabilities			(6,109	)			21,107
Deferred revenue			7,639				559
Net cash provided by operating activities			74,509				78,913
Cash flows from investing activities:
Sale of assets			1,058				-
Capitalized software			(1,846	)			(3,872	)
Capital expenditures			(9,479	)			(6,232	)
Data acquisition costs			(5,450	)			(7,825	)
Payment for investments			(1,000	)			-
Net cash paid in acquisitions			(3,785	)			(2,700	)
Net cash used by investing activities			(20,502	)			(20,629	)
Cash flows from financing activities:
Payments of debt			(17,316	)			(14,193	)
Fees for debt refinancing			(4,563	)			-
Sale of common stock			351				2,447
Tax benefit of stock options exercised			-				-
Acquisition of treasury stock			-				(655	)
Noncontrolling interests equity contributions			457				-
Net cash used by financing activities			(21,071	)			(12,401	)
Effect of exchange rate changes on cash			12				(1,178	)
Net increase in cash and cash equivalents			32,948				44,705
Cash and cash equivalents at beginning of period			167,634				93,370
Cash and cash equivalents at end of period			200,582				138,075
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest			6,221				8,047
Income taxes			(4,190	)			2,901
Payments on capital leases and installment payment arrangements			7,309				9,033
Payments on software and data license liabilities			416				3,099
Other debt payments, excluding line of credit			2,091				2,061
Prepayment of debt			7,500				-
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements			7,860				2,233

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
			For the Nine Months Ended
			December 31,
			2009				2008
Cash flows from operating activities:
Net earnings			27,797				15,054
Non-cash operating activities:
Depreciation and amortization			124,912				154,297
Loss on disposal or impairment of assets, net			410				22,654
Deferred income taxes			23,100				5,069
Non-cash stock compensation expense			8,288				8,040
Changes in operating assets and liabilities:
Accounts receivable			5				(9,377	)
Other assets			11,913				13,875
Deferred costs			(15,381	)			(2,986	)
Accounts payable and other liabilities			(31,214	)			(6,222	)
Deferred revenue			1,548				(6,215	)
Net cash provided by operating activities			151,378				194,189
Cash flows from investing activities:
Sale of assets			1,058				24,174
Capitalized software			(6,661	)			(13,001	)
Capital expenditures			(31,372	)			(19,183	)
Cash collected from sale and license of software			-				2,000
Data acquisition costs			(14,231	)			(22,954	)
Payment from (for) investments			(1,000	)			2,596
Net cash paid in acquisitions			(3,428	)			(15,403	)
Net cash used by investing activities			(55,634	)			(41,771	)
Cash flows from financing activities:
Payments of debt			(72,442	)			(73,694	)
Fees for debt refinancing			(4,563	)			-
Dividends paid			-				(9,312	)
Sale of common stock			3,014				8,362
Tax benefit of stock options exercised			-				115
Acquisition of treasury stock			(307	)			(655	)
Noncontrolling interests equity contributions			457				-
Net cash used by financing activities			(73,841	)			(75,184	)
Effect of exchange rate changes on cash			1,513				(1,820	)
Net increase in cash and cash equivalents			23,416				75,414
Cash and cash equivalents at beginning of period			177,166				62,661
Cash and cash equivalents at end of period			200,582				138,075
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest			16,807				24,468
Income taxes			(8,450	)			(3,029	)
Payments on capital leases and installment payment arrangements			22,607				33,116
Payments on software and data license liabilities			6,134				19,887
Other debt payments, excluding line of credit			6,201				6,191
Prepayment of debt			37,500				14,500
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements			18,247				7,892
Software licenses and maintenance acquired under software obligation			611				1,546

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
			06/30/08				09/30/08				12/31/08				03/31/09				FY2009				06/30/09				09/30/09				12/31/09				FY2010
Net cash provided by operating activities			28,473				86,803				78,913				74,652				268,841				16,166				60,703				74,509				151,378
Plus:
Sale of assets			-				24,174				-				-				24,174				-				-				1,058				1,058
Payments received from investments			2,494				102				-				3				2,599				-				-				-				-
Less:
Capitalized software			(5,011	)			(4,118	)			(3,872	)			(3,238	)			(16,239	)			(2,384	)			(2,431	)			(1,846	)			(6,661	)
Capital expenditures			(5,706	)			(7,245	)			(6,232	)			(12,266	)			(31,449	)			(7,431	)			(14,462	)			(9,479	)			(31,372	)
Data acquisition costs			(8,622	)			(6,507	)			(7,825	)			(7,607	)			(30,561	)			(5,777	)			(3,004	)			(5,450	)			(14,231	)
Payments on capital leases and installment payment arrangements			(12,879	)			(11,204	)			(9,033	)			(7,673	)			(40,789	)			(7,794	)			(7,504	)			(7,309	)			(22,607	)
Payments on software and data license liabilities			(8,368	)			(8,420	)			(3,099	)			(3,330	)			(23,217	)			(3,878	)			(1,840	)			(416	)			(6,134	)
Other required debt payments			(2,057	)			(2,073	)			(2,061	)			(2,073	)			(8,264	)			(2,052	)			(2,058	)			(2,091	)			(6,201	)
Subtotal			(11,676	)			71,512				46,791				38,468				145,095				(13,150	)			29,404				48,976				65,230
Plus:
Tax benefit of stock options and warrants			60				55				-				(81	)			34				-				-				-				-
Subtotal			(11,616	)			71,567				46,791				38,387				145,129				(13,150	)			29,404				48,976				65,230
Plus:
Cash collected from sale of software			2,000				-				-				-				2,000				-				-				-				-
Total			(9,616	)			71,567				46,791				38,387				147,129				(13,150	)			29,404				48,976				65,230

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
																																							Q3 FY09 to Q3 FY10
			06/30/08				09/30/08				12/31/08				03/31/09				FY2009				06/30/09				09/30/09				12/31/09				FY2010				%				$
Revenue:
Services			236,695				233,605				231,077				218,885				920,262				199,326				210,213				218,340				627,879				-5.5	%			(12,737	)
Products			94,378				95,330				89,979				76,624				356,311				56,655				60,892				65,467				183,014				-27.2	%			(24,512	)
Total revenue			331,073				328,935				321,056				295,509				1,276,573				255,981				271,105				283,807				810,893				-11.6	%			(37,249	)
Operating costs and expenses:
Cost of revenue
Services			178,861				180,986				173,433				161,060				694,340				159,576				165,792				163,206				488,574				5.9	%			10,227
Products			77,717				77,038				70,487				55,604				280,846				45,919				46,129				46,727				138,775				33.7	%			23,760
Total cost of revenue			256,578				258,024				243,920				216,664				975,186				205,495				211,921				209,933				627,349				13.9	%			33,987
Selling, general and administrative			49,482				38,988				42,560				38,930				169,960				37,643				37,964				43,477				119,084				-2.2	%			(917	)
Gains, losses and other items, net			(545	)			(2,370	)			43,175				(1,694	)			38,566				347				(27	)			538				858				98.8	%			42,637
Total operating costs and expenses			305,515				294,642				329,655				253,900				1,183,712				243,485				249,858				253,948				747,291				23.0	%			75,707
Income (loss) from operations			25,558				34,293				(8,599	)			41,609				92,861				12,496				21,247				29,859				63,602				447.2	%			38,458
% Margin			7.7	%			10.4	%			-2.7	%			14.1	%			7.3	%			4.9	%			7.8	%			10.5	%			7.8	%
Other income (expense)
Interest expense			(9,459	)			(8,591	)			(8,105	)			(6,441	)			(32,596	)			(5,505	)			(5,423	)			(5,687	)			(16,615	)			29.8	%			2,418
Other, net			1,359				287				140				163				1,949				(118	)			223				198				303				41.4	%			58
Total other income (expense)			(8,100	)			(8,304	)			(7,965	)			(6,278	)			(30,647	)			(5,623	)			(5,200	)			(5,489	)			(16,312	)			31.1	%			2,476
Earnings (loss) before income taxes			17,458				25,989				(16,564	)			35,331				62,214				6,873				16,047				24,370				47,290				247.1	%			40,934
Income taxes			6,808				10,136				(5,115	)			12,881				24,710				2,679				6,602				10,212				19,493				-299.6	%			(15,327	)
Net earnings (loss)			10,650				15,853				(11,449	)			22,450				37,504				4,194				9,445				14,158				27,797				223.7	%			25,607
Less: Net earnings (loss) attributable
to noncontrolling interest			-				-				-				-				-				-				-				(104	)			(104	)			-				(104	)
Net earnings (loss) attributable to Acxiom			10,650				15,853				(11,449	)			22,450				37,504				4,194				9,445				14,262				27,901				224.6	%			25,711
Diluted earnings (loss) per share
attributable to Acxiom shareholders			0.14				0.20				(0.15	)			0.29				0.48				0.05				0.12				0.18				0.35				220.0	%			0.33

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																																							Q3 FY09 to Q3 FY10
			06/30/08				09/30/08				12/31/08				03/31/09				FY2009				06/30/09				09/30/09				12/31/09				FY2010				%				$
Revenue:
Services			236,695				233,605				231,077				218,885				920,262				199,326				210,213				218,340				627,879				-5.5	%			(12,737	)
Products			94,378				95,330				89,979				76,624				356,311				56,655				60,892				65,467				183,014				-27.2	%			(24,512	)
Total revenue			331,073				328,935				321,056				295,509				1,276,573				255,981				271,105				283,807				810,893				-11.6	%			(37,249	)
Income from operations:
Services			25,639				28,527				30,358				32,873				117,397				15,838				19,971				27,565				63,374				-9.2	%			(2,793	)
Products			(626	)			3,396				4,218				7,042				14,030				(2,995	)			1,249				2,832				1,086				-32.9	%			(1,386	)
Other			545				2,370				(43,175	)			1,694				(38,566	)			(347	)			27				(538	)			(858	)			98.8	%			42,637
Total income (loss) from operations			25,558				34,293				(8,599	)			41,609				92,861				12,496				21,247				29,859				63,602				447.2	%			38,458
Margin:
Services			10.8	%			12.2	%			13.1	%			15.0	%			12.8	%			7.9	%			9.5	%			12.6	%			10.1	%
Products			-0.7	%			3.6	%			4.7	%			9.2	%			3.9	%			-5.3	%			2.1	%			4.3	%			0.6	%
Total			7.7	%			10.4	%			-2.7	%			14.1	%			7.3	%			4.9	%			7.8	%			10.5	%			7.8	%

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