For more information, contact:
Robert S. Bloom
Financial Relations Leader
Acxiom Corporation
(501) 342-1321
Acxiom® Expects Fourth-Quarter Revenue, Earnings Shortfall
LITTLE ROCK, Ark-- April 8, 2003-- Acxiom® Corporation (Nasdaq: ACXM)
announced today that it anticipates that revenue and earnings for the fourth
quarter of fiscal 2003 ended March 31, 2003 will be below the Company's
previously stated expectations. Acxiom will hold a conference call at 8:00 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 May 14, 2003 as previously scheduled.
Acxiom expects that fourth-quarter revenues will be approximately $238 million,
compared to $225 million in revenue in the fourth quarter of last year. Earnings
per share is expected to be a loss of approximately $.22 to $.26. The Company
expects to record non-cash write-offs in the range of $35 million to $40
million, or approximately $.25 to $.29 per share, related to impaired
investments, software inventory and actions associated with certain unprofitable
operations. Excluding these write-offs earnings per share would have been
approximately $.03.
"Coming off a strong December and excellent third-quarter performance, we were
optimistic that our business would continue to gain momentum through the fourth
quarter," Company Leader Charles D. Morgan said. "However, the war in Iraq and
the continued deterioration of the U.S. economy caused a sharp drop-off in data
sales as well as project-based and volume-based revenue in the quarter. While
our fundamental value proposition remains outstanding and new contract signings
were strong, we have seen more clients delay programs and projects and remain
very conservative in all areas of discretionary corporate spending."
Morgan added, "It is important to note that our cash flows have remained strong
and exceeded our prior guidance. This strong cash flow performance has allowed
us to continue to reduce debt and buy back Acxiom stock."
Morgan also announced that the Company in the quarter entered into new contracts
that are expected to deliver $25 million in annual revenue and renewals expected
to generate $103 million in annual revenue.
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.
The forecast is based on the assumption that the general economic environment
will not substantially change during the first quarter of the 2004 fiscal year
ending June 30, 2003, during which the company expects to generate revenue of
$235 million to $240 million and earnings in the range of $.05 to $.10 per
share. The Company expects to update its full fiscal-year 2004 estimates in its
May 14, 2003 earnings release. At this time the Company expects a reduction of
10 percent or less in its prior fiscal 2004 earnings estimates and a reduction
of 5 percent or less in its revenue projections.
About Acxiom
Acxiom Corporation (Nasdaq: ACXM) 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, Arkansas,
with locations throughout the United States, and in the United Kingdom, France
and Australia.
This release and today's conference call contain 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 the business pipeline and that our current cost structure
will allow the Company to continue to meet or exceed expectations; 2) that the
final results of the company for the quarter and fiscal year ended March 31,
2003 will be within the indicated ranges, 3) that the future results of the
company will be within the indicated ranges and 4) that the general economic
environment will not significantly change between the present time and June 30,
2003. The following are important factors, among others, that could cause actual
results to differ materially from these forward-looking statements: The
possibility that certain contracts may not be closed or closed within the
anticipated time frames; the possibility that certain contracts may not generate
the anticipated revenue or profitability; 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 economic
conditions will not improve as rapidly as expected; the possibility that
significant customers may experience extreme, severe economic difficulty; the
possibility that the fair value of certain assets of the company 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 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; the continued availability of credit
upon satisfactory terms and conditions; the introduction of competent,
competitive products, technologies or services by other companies; changes in
consumer 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 difficulties encountered when
entering new markets or industries; 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 possibility that the amount of ad
hoc project work will not be as expected; the potential loss of data center
capacity or interruption of telecommunication links or power sources; postal
rate increases that could lead to reduced volumes of business; customers that
may cancel or modify their agreements with the Company; the potential disruption
of the services of the United States Postal Service, their global counterparts
and other delivery systems; 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.
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