LiveRamp (RAMP) 8-K Acxiom Announces Third Quarter Fiscal Year 2011 Results

For more information, contact:

Katharine Boyce

Acxiom Investor Relations

501-342-1321

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES THIRD QUARTER FISCAL YEAR 2011 RESULTS

Company Reports Third Consecutive Quarter of Year-over-Year Improvement in Revenue and Operating Income

LITTLE ROCK, Ark. – January 26, 2011 — Acxiom® Corporation (Nasdaq: ACXM) a recognized leader in marketing services and technology, today announced financial results for the third quarter of fiscal year 2011 ended December 31, 2010. 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. The company will reference presentation slides that will be available on the website prior to the call.

John Meyer, Acxiom’s chief executive officer and president, said, “We are pleased that Acxiom delivered another solid performance in the third quarter of fiscal 2011. This represents our third consecutive quarter of year-over-year revenue and operating income growth. This quarter’s performance was driven by the continued execution against our strategy and was aided by the general improvement in client spending in our core markets.”

Third Quarter 2011 Highlights:

·   Revenue increased by 5.4% in the current quarter ended December 31, 2010 to $299.1 million, compared to $283.8 million for the quarter ended December 31, 2009.

·   Income from operations of $34.6 million in the current-year third quarter compared to income from operations of $29.9 million in the third quarter of the prior year. Excluding the impact of unusual items which are described below, income from operations in the current quarter would be $30.9 million, a 3.6% increase over the prior-year quarter.

·   Earnings per diluted share attributable to Acxiom stockholders of $0.25 in the current quarter, compared to $0.18 in the third quarter of fiscal 2010. Excluding the impact of unusual items described below, earnings per diluted share attributable to Acxiom stockholders would be $0.19 in the current period, a 5.6% increase over the prior-year quarter.

1

ACXIOM ANNOUNCES THIRD QUARTER FISCAL YEAR 2011 RESULTS

The company recorded adjustments to restructuring and legal accruals during the quarter totaling $3.6 million recorded in gains, losses and other items, net. In addition, during the quarter, the company reduced a reserve for unrecognized tax benefits by approximately $3.5 million due to the expiration of the related statute of limitations. These two items combined increased earnings per share attributable to Acxiom shareholders by 6 cents.

·   Operating cash flow of $64.2 million, compared to $74.5 million in the third quarter a year ago.

·   Free cash flow available to equity of $35.1 million, compared to $49.0 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 ended December 31, 2010 was $232.8 million, up 6.6%, compared to $218.3 million for the quarter ended December 31, 2009. Income from operations for the current third quarter was $26.4 million, down 4.3% compared to $27.6 million in the prior-year third quarter.

·   Information Products: Revenue for the quarter increased 1.3% to $66.3 million, compared with $65.5 million in the third quarter a year ago. Income from operations for the quarter was $4.5 million, compared to $2.8 million in the third quarter of the previous year.

Fiscal Year 2011 Year-To-Date Highlights:

·   Revenue increased by 6.2% in the current year nine-month period, to $861.2 million, compared to $810.9 million for the same period last year.

·   Income from operations of $84.0 million for the first nine months of fiscal year 2011, up 32.0%, compared to income from operations of $63.6 million in the comparable nine-month period of fiscal 2010.  Excluding the impact of unusual items described above, income from operations in the current year would be $80.3 million, a 26.3% increase over the prior year.

·   Earnings per diluted share attributable to Acxiom stockholders of $0.54 for the current year nine-month period, compared to $0.35 in the comparable nine-month period last year. Excluding the impact of unusual items noted above, earnings per diluted share attributable to Acxiom stockholders would be $0.47 for the current year nine-month period.

·   Operating cash flow of $124.2 million in the current fiscal year nine-month period, compared to $151.4 million in the prior year nine-month period.

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ACXIOM ANNOUNCES THIRD QUARTER FISCAL YEAR 2011 RESULTS

·   Free cash flow available to equity of $38.5 million for the nine months ended December 31, 2010, compared to $65.2 million for the nine months ended December 31, 2009. 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.

Web Link to Financials

You may link to http://www.acxiom.com/FY11_Q3_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing services and technology that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience in data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific, the Middle East and South America. For more information about Acxiom, visit Acxiom.com.

Forward Looking Statements

This release and today’s conference call may contain forward-looking statements including, without limitation, statements regarding an improvement in the economic outlook, and the possibility of continued future growth. 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 cus tomer 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,

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ACXIOM ANNOUNCES THIRD QUARTER FISCAL YEAR 2011 RESULTS

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 reports on Form 10-K, particularly the discussion under the caption “Item 1A, RISK FACTORS” in our Annual Reports on Form 10-K for the year ended March 31, 2010, which was filed with the Securities and Exchange Commission on May 26, 2010.

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.

4

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
		For the Three Months Ended
		December 31,
								$				%
		2010			2009			Variance			Variance
Revenue:
Services			232,798			218,340			14,458			6.6	%
Products			66,312			65,467			845			1.3	%
Total revenue			299,110			283,807			15,303			5.4	%
Operating costs and expenses:
Cost of revenue
Services			178,586			163,206			(15,380	)		(9.4	%)
Products			48,258			46,727			(1,531	)		(3.3	%)
Total cost of revenue			226,844			209,933			(16,911	)		(8.1	%)
Services gross margin			23.3	%		25.3	%
Products gross margin			27.2	%		28.6	%
Total gross margin			24.2	%		26.0	%
Selling, general and administrative			41,331			43,477			2,146			4.9	%
Gains, losses and other items, net			(3,640	)		538			4,178			776.6	%
Total operating costs and expenses			264,535			253,948			(10,587	)		(4.2	%)
Income from operations			34,575			29,859			4,716			15.8	%
Other income (expense):
Interest expense			(6,006	)		(5,687	)		(319	)		(5.6	%)
Other, net			(299	)		198			(497	)		(251.0	%)
Total other income (expense)			(6,305	)		(5,489	)		(816	)		(14.9	%)
Earnings before income taxes			28,270			24,370			3,900			16.0	%
Income taxes			7,856			10,212			2,356			23.1	%
Net earnings			20,414			14,158			6,256			44.2	%
Less: Net loss attributable to noncontrolling interest	��		(409	)		(104	)		(305	)		-
Net earnings attributable to Acxiom			20,823			14,262			6,561			46.0	%
Earnings per share:
Basic			0.25			0.18			0.07			38.9	%
Diluted			0.25			0.18			0.07			38.9	%
Earnings per share attributable to Acxiom stockholders:
Basic			0.26			0.18			0.08			44.4	%
Diluted			0.25			0.18			0.07			38.9	%

  5

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the Nine Months Ended
	December 31,
							$				%
	2010			2009			Variance			Variance
Revenue:
Services		669,038			627,879			41,159			6.6	%
Products		192,136			183,014			9,122			5.0	%
Total revenue		861,174			810,893			50,281			6.2	%
Operating costs and expenses:
Cost of revenue
Services		518,923			488,574			(30,349	)		(6.2	%)
Products		142,349			138,775			(3,574	)		(2.6	%)
Total cost of revenue		661,272			627,349			(33,923	)		(5.4	%)
Services gross margin		22.4	%		22.2	%
Products gross margin		25.9	%		24.2	%
Total gross margin		23.2	%		22.6	%
Selling, general and administrative		119,560			119,084			(476	)		(0.4	%)
Gains, losses and other items, net		(3,619	)		858			4,477			521.8	%
Total operating costs and expenses		777,213			747,291			(29,922	)		(4.0	%)
Income from operations		83,961			63,602			20,359			32.0	%
Other income (expense):
Interest expense		(18,164	)		(16,615	)		(1,549	)		(9.3	%)
Other, net		(639	)		303			(942	)		(310.9	%)
Total other income (expense)		(18,803	)		(16,312	)		(2,491	)		(15.3	%)
Earnings before income taxes		65,158			47,290			17,868			37.8	%
Income taxes		22,611			19,493			(3,118	)		(16.0	%)
Net earnings		42,547			27,797			14,750			53.1	%
Less: Net loss attributable to noncontrolling interest		(1,362	)		(104	)		(1,258	)		-
Net earnings attributable to Acxiom		43,909			27,901			16,008			57.4	%
Earnings per share:
Basic		0.53			0.35			0.18			51.4	%
Diluted		0.52			0.35			0.17			48.6	%
Earnings per share attributable to Acxiom stockholders:
Basic		0.55			0.35			0.20			57.1	%
Diluted		0.54			0.35			0.19			54.3	%

6

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,
	2010		2009
Basic earnings per share:
Numerator - net earnings		20,414		14,158
Denominator - weighted-average shares outstanding		80,233		79,068
Basic earnings per share		0.25		0.18
Diluted earnings per share:
Numerator - net earnings		20,414		14,158
Denominator - weighted-average shares outstanding		80,233		79,068
Dilutive effect of common stock options, warrants and restricted stock		1,865		802
		82,098		79,870
Diluted earnings per share		0.25		0.18
Basic earnings per share attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		20,823		14,262
Denominator - weighted-average shares outstanding		80,233		79,068
Basic earnings per share attributable to Acxiom stockholders		0.26		0.18
Diluted earnings per share attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		20,823		14,262
Denominator - weighted-average shares outstanding		80,233		79,068
Dilutive effect of common stock options, warrants, and restricted stock		1,865		802
		82,098		79,870
Diluted earnings per share attributable to Acxiom stockholders		0.25		0.18

7

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,
	2010		2009
Basic earnings per share:
Numerator - net earnings		42,547		27,797
Denominator - weighted-average shares outstanding		80,007		78,883
Basic earnings per share		0.53		0.35
Diluted earnings per share:
Numerator - net earnings		42,547		27,797
Denominator - weighted-average shares outstanding		80,007		78,883
Dilutive effect of common stock options, warrants and restricted stock		1,606		537
		81,613		79,420
Diluted earnings per share		0.52		0.35
Basic earnings per share attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		43,909		27,901
Denominator - weighted-average shares outstanding		80,007		78,883
Basic earnings per share attributable to Acxiom stockholders		0.55		0.35
Diluted earnings per share attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		43,909		27,901
Denominator - weighted-average shares outstanding		80,007		78,883
Dilutive effect of common stock options, warrants, and restricted stock		1,606		537
		81,613		79,420
Diluted earnings per share attributable to Acxiom stockholders		0.54		0.35

8

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	December 31,			December 31,
Revenue:	2010			2009
Information services		232,798			218,340
Information products		66,312			65,467
Total revenue		299,110			283,807
Income from operations:
Information services		26,390			27,565
Information products		4,545			2,832
Other		3,640			(538	)
Total income from operations		34,575			29,859
Margin:
Information services		11.3	%		12.6	%
Information products		6.9	%		4.3	%
Total margin		11.6	%		10.5	%

9

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Nine Months Ended
	December 31,			December 31,
Revenue:	2010			2009
Information services		669,038			627,879
Information products		192,136			183,014
Total revenue		861,174			810,893
Income from operations:
Information services		70,221			63,374
Information products		10,121			1,086
Other		3,619			(858	)
Total income from operations		83,961			63,602
Margin:
Information services		10.5	%		10.1	%
Information products		5.3	%		0.6	%
Total margin		9.7	%		7.8	%

10

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
	December 31,			March 31,			$				%
	2010			2010			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		203,936			224,104			(20,168	)		(9.0	%)
Trade accounts receivable, net		171,695			168,522			3,173			1.9	%
Deferred income taxes		11,863			11,874			(11	)		(0.1	%)
Refundable income taxes		2,071			-			2,071			100.0	%
Other current assets		55,468			54,205			1,263			2.3	%
Total current assets		445,033			458,705			(13,672	)		(3.0	%)
Property and equipment		877,192			824,084			53,108			6.4	%
Less - accumulated depreciation and amortization		618,490			587,245			31,245			5.3	%
Property and equipment, net		258,702			236,839			21,863			9.2	%
Software, net of accumulated amortization		31,018			38,845			(7,827	)		(20.1	%)
Goodwill		488,381			470,261			18,120			3.9	%
Purchased software licenses, net of accumulated amortization		43,077			51,356			(8,279	)		(16.1	%)
Deferred costs, net		85,792			68,914			16,878			24.5	%
Data acquisition costs		19,820			21,931			(2,111	)		(9.6	%)
Other assets, net		14,429			16,569			(2,140	)		(12.9	%)
		1,386,252			1,363,420			22,832			1.7	%
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		30,764			42,106			11,342			26.9	%
Trade accounts payable		43,757			42,774			(983	)		(2.3	%)
Accrued payroll and related expenses		32,485			36,517			4,032			11.0	%
Other accrued expenses		69,786			75,632			5,846			7.7	%
Deferred revenue		66,441			55,567			(10,874	)		(19.6	%)
Income taxes		-			2,460			2,460			100.0	%
Total current liabilities		243,233			255,056			11,823			4.6	%
Long-term debt		414,307			458,629			44,322			9.7	%
Deferred income taxes		69,174			61,284			(7,890	)		(12.9	%)
Other liabilities		8,834			9,954			1,120			11.3	%
Stockholders' equity:
Common stock		11,746			11,662			84			0.7	%
Additional paid-in capital		832,065			814,929			17,136			2.1	%
Retained earnings		526,152			482,243			43,909			9.1	%
Accumulated other comprehensive income		9,554			4,167			5,387			129.3	%
Treasury stock, at cost		(738,601	)		(738,601	)		0			0.0	%
Total Acxiom stockholders' equity		640,916			574,400			66,516			11.6	%
Noncontrolling interest		9,788			4,097			5,691			138.9	%
Total equity		650,704			578,497			72,207			12.5	%
		1,386,252			1,363,420			22,832			1.7	%

11

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	December 31,
	2010			2009
Cash flows from operating activities:
Net earnings		20,414			14,158
Non-cash operating activities:
Depreciation and amortization		34,880			43,170
Loss (Gain) on disposal or impairment of assets		(317	)		403
Deferred income taxes		302			14,381
Non-cash stock compensation expense		3,437			2,638
Changes in operating assets and liabilities:
Accounts receivable		585			1,814
Other assets		3,561			8,452
Deferred costs		(5,786	)		(12,037	)
Accounts payable and other liabilities		(3,626	)		(6,109	)
Deferred revenue		10,780			7,639
Net cash provided by operating activities		64,230			74,509
Cash flows from investing activities:
Sale of assets		-			1,058
Capitalized software		(1,025	)		(1,846	)
Capital expenditures		(16,322	)		(9,479	)
Data acquisition costs		(3,765	)		(5,450	)
Payments for investments		-			(1,000	)
Net cash paid in acquisitions		-			(3,785	)
Net cash used by investing activities		(21,112	)		(20,502	)
Cash flows from financing activities:
Payments of debt		(41,522	)		(17,316	)
Fees for debt refinancing		-			(4,563	)
Sale of common stock		2,503			351
Proceeds from partner's contributions		347			457
Net cash used by financing activities		(38,672	)		(21,071	)
Effect of exchange rate changes on cash		106			12
Net change in cash and cash equivalents		4,552			32,948
Cash and cash equivalents at beginning of period		199,384			167,634
Cash and cash equivalents at end of period		203,936			200,582
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		6,052			6,221
Income taxes	��	1,913			(4,190	)
Payments on capital leases and installment payment arrangements		5,726			7,309
Payments on software and data license liabilities		120			416
Other debt payments, excluding line of credit		2,143			2,091
Prepayment of debt		33,533			7,500
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		4,779			7,860

12

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Nine Months Ended
	December 31,
	2010			2009
Cash flows from operating activities:
Net earnings		42,547			27,797
Non-cash operating activities:
Depreciation and amortization		108,586			124,912
Loss (gain) on disposal or impairment of assets		(272	)		410
Deferred income taxes		4,245			23,100
Non-cash stock compensation expense		9,897			8,288
Changes in operating assets and liabilities:
Accounts receivable		(7,913	)		5
Other assets		(4,590	)		11,913
Deferred costs		(28,407	)		(15,381	)
Accounts payable and other liabilities		(11,653	)		(31,214	)
Deferred revenue		11,744			1,548
Net cash provided by operating activities		124,184			151,378
Cash flows from investing activities:
Sale of assets		-			1,058
Capitalized software		(3,592	)		(6,661	)
Capital expenditures		(46,808	)		(31,372	)
Data acquisition costs		(10,716	)		(14,231	)
Payments from (for) investments		175			(1,000	)
Net cash paid in acquisitions		(12,927	)		(3,428	)
Net cash used by investing activities		(73,868	)		(55,634	)
Cash flows from financing activities:
Payments of debt		(78,089	)		(72,442	)
Fees for debt refinancing		-			(4,563	)
Sale of common stock		7,323			3,014
Acquisition of treasury stock		-			(307	)
Proceeds from partner's contributions		480			457
Net cash used by financing activities		(70,286	)		(73,841	)
Effect of exchange rate changes on cash		(198	)		1,513
Net change in cash and cash equivalents		(20,168	)		23,416
Cash and cash equivalents at beginning of period		224,104			177,166
Cash and cash equivalents at end of period		203,936			200,582
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		17,728			16,807
Income taxes		22,995			(8,450	)
Payments on capital leases and installment payment arrangements		17,105			22,607
Payments on software and data license liabilities		1,177			6,134
Other debt payments, excluding line of credit		6,274			6,201
Prepayment of debt		53,533			37,500
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		22,429			18,247
Software licenses and maintenance acquired under software obligation		-			611

13

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
	06/30/09			09/30/09			12/31/09			03/31/10			FY2010			06/30/10			09/30/10			12/31/10			FY2011
Net cash provided by operating activities		16,166			60,703			74,509			87,904			239,282			16,988			42,966			64,230			124,184
Plus:
Sale of assets		-			-			1,058			-			1,058			-			-			-			-
Less:
Capitalized software		(2,384	)		(2,431	)		(1,846	)		(1,596	)		(8,257	)		(1,226	)		(1,341	)		(1,025	)		(3,592	)
Capital expenditures		(7,431	)		(14,462	)		(9,479	)		(26,536	)		(57,908	)		(8,752	)		(21,734	)		(16,322	)		(46,808	)
Data acquisition costs		(5,777	)		(3,004	)		(5,450	)		(4,577	)		(18,808	)		(4,326	)		(2,625	)		(3,765	)		(10,716	)
Payments on capital leases and installment payment arrangements		(7,794	)		(7,504	)		(7,309	)		(7,090	)		(29,697	)		(5,968	)		(5,411	)		(5,726	)		(17,105	)
Payments on software and data license liabilities		(3,878	)		(1,840	)		(416	)		(1,392	)		(7,526	)		(893	)		(164	)		(120	)		(1,177	)
Other required debt payments		(2,052	)		(2,058	)		(2,091	)		(3,597	)		(9,798	)		(2,103	)		(2,028	)		(2,143	)		(6,274	)
Total		(13,150	)		29,404			48,976			43,116			108,346			(6,280	)		9,663			35,129			38,512

14

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
																												Q3 FY10 to Q3 FY11
	06/30/09			09/30/09			12/31/09			03/31/10			FY2010			06/30/10			09/30/10			12/31/10			FY2011			%			$
Revenue:
Services		199,326			210,213			218,340			221,553			849,432			210,656			225,584			232,798			669,038			6.6	%		14,458
Products		56,655			60,892			65,467			66,789			249,803			59,739			66,085			66,312			192,136			1.3	%		845
Total revenue		255,981			271,105			283,807			288,342			1,099,235			270,395			291,669			299,110			861,174			5.4	%		15,303
Operating costs and expenses:
Cost of revenue
Services		159,576			165,792			163,206			166,085			654,659			164,650			175,687			178,586			518,923			-9.4	%		(15,380	)
Products		45,919			46,129			46,727			45,835			184,610			45,771			48,320			48,258			142,349			-3.3	%		(1,531	)
Total cost of revenue		205,495			211,921			209,933			211,920			839,269			210,421			224,007			226,844			661,272			-8.1	%		(16,911	)
Selling, general and administrative		37,643			37,964			43,477			43,013			162,097			37,955			40,274			41,331			119,560			4.9	%		2,146
Gains, losses and other items, net		347			(27	)		538			(1,802	)		(944	)		(57	)		78			(3,640	)		(3,619	)		776.6	%		4,178
Total operating costs and expenses		243,485			249,858			253,948			253,131			1,000,422			248,319			264,359			264,535			777,213			-4.2	%		(10,587	)
Income from operations		12,496			21,247			29,859			35,211			98,813			22,076			27,310			34,575			83,961			15.8	%		4,716
% Margin		4.9	%		7.8	%		10.5	%		12.2	%		9.0	%		8.2	%		9.4	%		11.6	%		9.7	%
Other income (expense)
Interest expense		(5,505	)		(5,423	)		(5,687	)		(5,865	)		(22,480	)		(5,898	)		(6,260	)		(6,006	)		(18,164	)		5.6	%		(319	)
Other, net		(118	)		223			198			122			425			(451	)		111			(299	)		(639	)		-251.0	%		(497	)
Total other income (expense)		(5,623	)		(5,200	)		(5,489	)		(5,743	)		(22,055	)		(6,349	)		(6,149	)		(6,305	)		(18,803	)		14.9	%		(816	)
Earnings before income taxes		6,873			16,047			24,370			29,468			76,758			15,727			21,161			28,270			65,158			16.0	%		3,900
Income taxes		2,679			6,602			10,212			13,106			32,599			6,291			8,464			7,856			22,611			23.1	%		2,356
Net earnings		4,194			9,445			14,158			16,362			44,159			9,436			12,697			20,414			42,547			44.2	%		6,256
Less: Net loss attributable
to noncontrolling interest		-			-			(104	)		(286	)		(390	)		(369	)		(584	)		(409	)		(1,362	)		293.3	%		(305	)
Net earnings attributable to Acxiom		4,194			9,445			14,262			16,648			44,549			9,805			13,281			20,823			43,909			46.0	%		6,561
Diluted earnings per share
attributable to Acxiom shareholders		0.05			0.12			0.18			0.21			0.56			0.12			0.16			0.25			0.54			38.9	%		0.07

15

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																												Q3 FY10 to Q3 FY11
	06/30/09			09/30/09			12/31/09			03/31/10			FY2010			06/30/10			09/30/10			12/31/10			FY2011			%			$
Revenue:
Services		199,326			210,213			218,340			221,553			849,432			210,656			225,584			232,798			669,038			6.6	%		14,458
Products		56,655			60,892			65,467			66,789			249,803			59,739			66,085			66,312			192,136			1.3	%		845
Total revenue		255,981			271,105			283,807			288,342			1,099,235			270,395			291,669			299,110			861,174			5.4	%		15,303
Income from operations:
Services		15,838			19,971			27,565			27,639			91,013			20,879			22,952			26,390			70,221			-4.3	%		(1,175	)
Products		(2,995	)		1,249			2,832			5,770			6,856			1,140			4,436			4,545			10,121			60.5	%		1,713
Other		(347	)		27			(538	)		1,802			944			57			(78	)		3,640			3,619			-776.6	%		4,178
Total income from operations		12,496			21,247			29,859			35,211			98,813			22,076			27,310			34,575			83,961			15.8	%		4,716
Margin:
Services		7.9	%		9.5	%		12.6	%		12.5	%		10.7	%		9.9	%		10.2	%		11.3	%		10.5	%
Products		-5.3	%		2.1	%		4.3	%		8.6	%		2.7	%		1.9	%		6.7	%		6.9	%		5.3	%
Total		4.9	%		7.8	%		10.5	%		12.2	%		9.0	%		8.2	%		9.4	%		11.6	%		9.7	%

16