LiveRamp 8K Acxiom Announces Third Quarter Results | RAMP 31 Jan 12

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Katharine Boyce

Acxiom Investor Relations

501-342-1321

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES THIRD QUARTER RESULTS

Strong operating and free cash flow results

LITTLE ROCK, Ark. – January 31, 2012 — Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, today announced financial results for the third quarter of fiscal year 2012 ended December 31, 2011.

Revenue from continuing operations decreased approximately 2 percent in the third quarter to $281 million, compared to $288 million for the third quarter of fiscal 2011. Earnings per diluted share attributable to Acxiom stockholders were $0.10 in the current quarter, compared to earnings per share of $0.25 in the third quarter of fiscal 2011. Excluding a non-cash impairment charge and other unusual items from both periods, earnings per diluted share attributable to Acxiom stockholders were $0.22, up approximately 16 percent year over year.

Operating cash flow increased 29 percent to $83 million in the third quarter, compared to $64 million in the third quarter of fiscal 2011. Free cash flow available to equity increased 58 percent to $55 million in the third quarter, compared to $35 million in the third quarter of fiscal 2011. 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.

The company re-evaluated goodwill and other intangibles associated with its Brazilian operations and as a result recorded a non-cash charge of approximately $15 million in the quarter.

A schedule is attached to this release outlining the impact of the unusual items on the current and prior-year third quarter and nine-month results.

”We are pleased with our recent progress, notably our improved cash flow and earnings, but we still have much more to accomplish,” said Acxiom Chief Executive Officer and President Scott Howe. “We have realigned and strengthened our management team, established a clear strategy and improved our operating visibility. Looking ahead, we have started the process of investing in new data analytics and product capabilities and must also seek to increase top line Marketing and Data Services growth. In addition, the team will also be focusing on improving the financial performance of our non-U.S. operations.”

Third Quarter Highlights:

Acxiom generated free cash flow to equity of $55 million during the quarter. Of this amount, $34 million was used to prepay $25 million of the company’s term loan due March 15, 2015, and repurchase stock for $9 million. In the current fiscal year, Acxiom has repurchased 4 million shares for $43 million.

During the quarter, Acxiom announced the sale of its background screening unit, Acxiom Information Security Services (AISS). The divestiture of AISS is part of the company’s long-term strategy of placing greater emphasis on its core database and marketing services business. As a result of the planned disposal, Acxiom is reporting results from continuing operations and discontinued operations separately. The sale is expected to close in the fourth quarter.

·	Segment results have been realigned consistent with the company’s forward-looking strategy. Acxiom will report results from three operating segments: Marketing and Data Services, IT Infrastructure Management and Other Services.

On January 11, 2012, Warren Jenson joined Acxiom as chief financial officer and executive vice president. Jenson has been CFO of Electronic Arts, Amazon.com, Delta Airlines and NBC. His career highlights also include being twice named as one of the best CFOs in America by Institutional Investor magazine and one of the “Bay Area CFOs of the Year” in 2010.

Today, Acxiom announced that Nada Stirratt will be joining Acxiom as the company’s first chief revenue officer. Her responsibilities as CRO and executive vice president will include all client-facing functions, including both domestic and international sales, account management and client delivery functions. She has held top positions at MySpace as chief revenue officer and MTV Networks as executive vice president of digital advertising.

Segment Results:

Marketing and Data Services: Revenue for the third quarter was $188 million, down slightly compared to $189 million for the third quarter of fiscal 2011. U.S. revenue of $155 million in the third quarter was up 2 percent, but was offset by declines in the international business. Income from operations for the third quarter was $22 million, up 2 percent compared to $21 million in the third quarter of fiscal 2011. Operating margins in the U.S. increased to 14 percent from 13 percent last year, but were offset by operating losses internationally.

·	IT Infrastructure Management: Revenue for the third quarter decreased 2 percent to $77 million, compared with $79 million in the third quarter of fiscal 2011. Income from operations for the third quarter was $10 million, compared to $9 million in the third quarter of fiscal 2011.

·	Other Services: Revenue for the third quarter was $16 million, down from $20 million in the third quarter last year. Loss from operations for the third quarter was $1 million, down from slightly positive income from operations in the third quarter last year.

Conference Call

Acxiom will hold a conference call at 4:00 p.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.

Web Link to Financials

You may link to http://www.acxiom.com/FY12_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, 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 our plans to invest in new data analytics and product capabilities, increasing the top line in Marketing and Data Services, focusing on improving the financial performance of our non-US operations. During the conference call there will be a general discussion of a going forward strategy including the potential amount and impact of investments in research and development and measures that we anticipate taking to make the business more aligned, responsive and efficient. 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 data suppliers might withdraw data from us, leading to our inability to provide certain products and services to our clients, which could lead to decreases in our operating results; 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; the possibility that we may be unable to quickly and seamlessly integrate our new chief financial and revenue officers; 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; the possibility that we could experience loss of data center capacity or interruption of telecommunication links; 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 reports 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, 2011, which was filed with the Securities and Exchange Commission on May 27, 2011.

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,
							$				%
	2011			2010			Variance			Variance

Revenue:
Marketing and data services		187,822			188,663			(841	)		(0.4	%)
IT Infrastructure management services		77,173			78,994			(1,821	)		(2.3	%)
Other services		15,898			20,248			(4,350	)		(21.5	%)
Total revenue		280,893			287,905			(7,012	)		(2.4	%)

Operating costs and expenses:
Cost of revenue		215,468			218,474			3,006			1.4	%
Selling, general and administrative		34,775			39,229			4,454			11.4	%
Impairment of goodwill and other intangibles		17,803			-			(17,803	)
Gains, losses and other items, net		(2,671	)		(3,640	)		(969	)		26.6	%

Total operating costs and expenses		265,375			254,063			(11,312	)		(4.5	%)

Income from operations		15,518			33,842			(18,324	)		(54.1	%)
% Margin		5.5	%		11.8	%
Other income (expense):
Interest expense		(3,883	)		(6,006	)		2,123			35.3	%
Other, net		(98	)		(299	)		201			(67.2	%)

Total other income (expense)		(3,981	)		(6,305	)		2,324			36.9	%

Earnings from continuing operations before income taxes		11,537			27,537			(16,000	)		(58.1	%)

Income taxes		9,700			7,564			(2,136	)		(28.2	%)

Net earnings from continuing operations		1,837			19,973			(18,136	)		(90.8	%)

Earnings from discontinued operations, net of tax		814			441			373			84.6	%

Net earnings		2,651			20,414			(17,763	)		(87.0	%)

Less: Net loss attributable to noncontrolling interest		(5,279	)		(409	)		(4,870	)		(1190.7	%)

Net earnings attributable to Acxiom		7,930			20,823			(12,893	)		(61.9	%)

Basic earnings per share:
Net earnings from continuing operations		0.02			0.25			(0.23	)		(92.0	%)
Earnings from discontinued operations		0.01			0.01			0.00			0.0	%
Net earnings		0.03			0.25			(0.22	)		(88.0	%)

Net earnings attributable to Acxiom stockholders		0.10			0.26			(0.16	)		(61.5	%)


Diluted earnings per share:
Net earnings from continuing operations		0.02			0.24			(0.22	)		(91.7	%)
Earnings from discontinued operations		0.01			0.01			0.00			0.0	%
Net earnings		0.03			0.25			(0.22	)		(88.0	%)

Net earnings attributable to Acxiom stockholders		0.10			0.25			(0.15	)		(60.0	%)


ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)


	For the Nine Months Ended
	December 31,
							$				%
	2011			2010			Variance			Variance

Revenue:
Marketing and data services		568,824			543,200			25,624			4.7	%
IT Infrastructure management services		223,935			227,881			(3,946	)		(1.7	%)
Other services		50,610			55,448			(4,838	)		(8.7	%)
Total revenue		843,369			826,529			16,840			2.0	%

Operating costs and expenses:
Cost of revenue		654,384			637,545			(16,839	)		(2.6	%)
Selling, general and administrative		107,871			113,125			5,254			4.6	%
Impairment of goodwill and other intangibles		17,803			-			(17,803	)
Gains, losses and other items, net		38			(3,619	)		(3,657	)		101.1	%

Total operating costs and expenses		780,096			747,051			(33,045	)		(4.4	%)

Income from operations		63,273			79,478			(16,205	)		(20.4	%)
% Margin		7.5	%		9.6	%
Other income (expense):
Interest expense		(14,057	)		(18,164	)		4,107			22.6	%
Other, net		(1,150	)		(639	)		(511	)		80.0	%

Total other income (expense)		(15,207	)		(18,803	)		3,596			19.1	%

Earnings from continuing operations before income taxes		48,066			60,675			(12,609	)		(20.8	%)

Income taxes		25,291			20,819			(4,472	)		(21.5	%)

Net earnings from continuing operations		22,775			39,856			(17,081	)		(42.9	%)

Earnings from discontinued operations, net of tax		2,868			2,691			177			6.6	%

Net earnings		25,643			42,547			(16,904	)		(39.7	%)

Less: Net loss attributable to noncontrolling interest		(5,554	)		(1,362	)		(4,192	)		(307.8	%)

Net earnings attributable to Acxiom		31,197			43,909			(12,712	)		(29.0	%)

Basic earnings per share:
Net earnings from continuing operations		0.28			0.50			(0.22	)		(44.0	%)
Earnings from discontinued operations		0.04			0.03			0.01			33.3	%
Net earnings		0.32			0.53			(0.21	)		(39.6	%)

Net earnings attributable to Acxiom stockholders		0.39			0.55			(0.16	)		(29.1	%)


Diluted earnings per share:
Net earnings from continuing operations		0.28			0.49			(0.21	)		(42.9	%)
Earnings from discontinued operations		0.04			0.03			0.01			33.3	%
Net earnings		0.32			0.52			(0.20	)		(38.5	%)

Net earnings attributable to Acxiom stockholders		0.39			0.54			(0.15	)		(27.8	%)


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings per share)

	For the Three Months Ended						For the Nine Months Ended
	December 31,						December 31,
	2011			2010			2011			2010


Earnings from continuing operations before income taxes		11,537			27,537			48,066			60,675

Income taxes		9,700			7,564			25,291			20,819

Net earnings from continuing operations		1,837			19,973			22,775			39,856

Earnings from discontinued operations, net of tax		814			441			2,868			2,691

Net earnings		2,651			20,414			25,643			42,547

Less: Net earnings (loss) attributable to noncontrolling interest		(5,279	)		(409	)		(5,554	)		(1,362	)

Net earnings attributable to Acxiom		7,930			20,823			31,197			43,909

Earnings per share attributable to Acxiom stockholders:

Basic		0.10			0.26			0.39			0.55

Diluted		0.10			0.25			0.39			0.54

Unusual items:

MENA disposal		-			-			2,512			-
Impairment of goodwill and other intangibles		17,803			-			17,803			-
Adjustment of earnout liability		(2,598	)		(434	)		(2,598	)		-
Other adjustments		(73	)		(3,206	)		124			(3,619	)

Total unusual items		15,132			(3,640	)		17,841			(3,619	)

Earnings from continuing operations before income taxes
and excluding unusual items		26,669			23,897			65,907			57,056

Income taxes		10,649			9,532			26,341			22,796

Non-GAAP earnings from continuing operations		16,020			14,365			39,566			34,260

Earnings from discontinued operations, net of tax		814			441			2,868			2,691

Non-GAAP net earnings		16,834			14,806			42,434			36,951

Less: Net earnings (loss) attributable to noncontrolling interest		(231	)		(409	)		(1,371	)		(1,362	)

Non-GAAP Net earnings attributable to Acxiom		17,065			15,215			43,805			38,313

Non-GAAP earnings per share attributable to Acxiom stockholders:

Basic		0.22			0.19			0.55			0.48

Diluted		0.22			0.19			0.54			0.47

Diluted weighted average shares		79,020			82,098			80,877			81,613


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)

	For the Three Months Ended					For the Nine Months Ended
	December 31,					December 31,
	2011		2010			2011		2010

Income from operations		15,518		33,842			63,273		79,478

Unusual items		15,132		(3,640	)		17,841		(3,619	)

Income from operations before unusual items		30,650		30,202			81,114		75,859


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,
	2011		2010

Basic earnings per share from continuing operations:
Numerator - net earnings		1,837		19,973
Denominator - weighted-average shares outstanding		78,189		80,233
Basic earnings per share		0.02		0.25

Basic earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		7,930		20,823
Denominator - weighted-average shares outstanding		78,189		80,233
Basic earnings per share - net earnings attributable to Acxiom stockholders		0.10		0.26

Diluted earnings per share from continuing operations:
Numerator - net earnings		1,837		19,973
Denominator - weighted-average shares outstanding		78,189		80,233
Dilutive effect of common stock options, warrants and restricted stock		831		1,865
		79,020		82,098

Diluted earnings per share from continuing operations		0.02		0.24

Diluted earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		7,930		20,823
Denominator - weighted-average shares outstanding		78,189		80,233
Dilutive effect of common stock options, warrants, and restricted stock		831		1,865
		79,020		82,098

Diluted earnings per share - net earnings attributable to Acxiom stockholders		0.10		0.25

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,
	2011		2010

Basic earnings per share from continuing operations:
Numerator - net earnings		22,775		39,856
Denominator - weighted-average shares outstanding		80,039		80,007
Basic earnings per share		0.28		0.50

Basic earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		31,197		43,909
Denominator - weighted-average shares outstanding		80,039		80,007
Basic earnings per share - net earnings attributable to Acxiom stockholders		0.39		0.55

Diluted earnings per share from continuing operations:
Numerator - net earnings		22,775		39,856
Denominator - weighted-average shares outstanding		80,039		80,007
Dilutive effect of common stock options, warrants and restricted stock		838		1,606
		80,877		81,613

Diluted earnings per share from continuing operations		0.28		0.49

Diluted earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		31,197		43,909
Denominator - weighted-average shares outstanding		80,039		80,007
Dilutive effect of common stock options, warrants, and restricted stock		838		1,606
		80,877		81,613

Diluted earnings per share - net earnings attributable to Acxiom stockholders		0.39		0.54

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)


	For the Three Months Ended

	December 31,			December 31,
Revenue:	2011			2010

Marketing and data services		187,822			188,663
IT Infrastructure management services		77,173			78,994
Other services		15,898			20,248

Total revenue		280,893			287,905


Income from continuing operations:

Marketing and data services		21,819			21,361
IT Infrastructure management services		9,795			8,588
Other services		(964	)		253
Corporate		(15,132	)		3,640

Total income from continuing operations		15,518			33,842

Margin:

Marketing and data services		11.6	%		11.3	%
IT Infrastructure management services		12.7	%		10.9	%
Other services		-6.1	%		1.2	%

Total margin		5.5	%		11.8	%

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)


	For the Nine Months Ended

	December 31,			December 31,
Revenue:	2011			2010

Marketing and data services		568,824			543,200
IT Infrastructure management services		223,935			227,881
Other services		50,610			55,448

Total revenue		843,369			826,529


Income from operations:

Marketing and data services		66,418			58,085
IT Infrastructure management services		19,133			18,973
Other services		(4,437	)		(1,199	)
Corporate		(17,841	)		3,619

Total income from operations		63,273			79,478

Margin:

Marketing and data services		11.7	%		10.7	%
IT Infrastructure management services		8.5	%		8.3	%
Other services		-8.8	%		-2.2	%

Total margin		7.5	%		9.6	%


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	December 31,			March 31,			$				%
	2011			2011			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		145,863			206,973			(61,110	)		(29.5	%)
Trade accounts receivable, net		170,735			171,252			(517	)		(0.3	%)
Deferred income taxes		11,516			12,480			(964	)		(7.7	%)
Refundable income taxes		-			7,402			(7,402	)		100.0	%
Other current assets		52,045			55,668			(3,623	)		100.0	%
Assets of discontinued operations		28,440			27,141			1,299			4.8	%

Total current assets		408,599			480,916			(72,317	)		(15.0	%)

Property and equipment		908,367			886,967			21,400			2.4	%
Less - accumulated depreciation and amortization		654,392			632,297			22,095			3.5	%

Property and equipment, net		253,975			254,670			(695	)		(0.3	%)

Software, net of accumulated amortization		14,468			26,030			(11,562	)		(44.4	%)
Goodwill		380,834			397,349			(16,515	)		(4.2	%)
Purchased software licenses, net of accumulated amortization		27,833			38,472			(10,639	)		(27.7	%)
Deferred costs, net		65,760			81,837			(16,077	)		(19.6	%)
Data acquisition costs		14,612			17,627			(3,015	)		(17.1	%)
Other assets, net		4,406			9,724			(5,318	)		(54.7	%)

		1,170,487			1,306,625			(136,138	)		(10.4	%)

Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		27,852			27,978			126			0.5	%
Trade accounts payable		28,513			27,530			(983	)		(3.6	%)
Accrued payroll and related expenses		41,566			41,784			218			0.5	%
Other accrued expenses		66,215			73,840			7,625			10.3	%
Deferred revenue		69,838			55,921			(13,917	)		(24.9	%)
Income taxes		2,144			-			(2,144	)
Liabilities of discontinued operations		2,849			2,441			(408	)		(16.7	%)

Total current liabilities		238,977			229,494			(9,483	)		(4.1	%)

Long-term debt		256,975			394,260			137,285			34.8	%

Deferred income taxes		86,767			84,360			(2,407	)		(2.9	%)

Other liabilities		3,983			7,478			3,495			46.7	%

Stockholders' equity:
Common stock		11,953			11,777			176			1.5	%
Additional paid-in capital		854,325			837,439			16,886			2.0	%
Retained earnings		490,293			459,096			31,197			6.8	%
Accumulated other comprehensive income		11,995			15,991			(3,996	)		(25.0	%)
Treasury stock, at cost		(785,082	)		(739,125	)		(45,957	)		6.2	%
Total Acxiom stockholders' equity		583,484			585,178			(1,694	)		(0.3	%)
Noncontrolling interest		301			5,855			(5,554	)		(94.9	%)

Total equity		583,785			591,033			(7,248	)		(1.2	%)

		1,170,487			1,306,625			(136,138	)		(10.4	%)


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended

	December 31,

	2011			2010

Cash flows from operating activities:
Net earnings		2,651			20,414
Non-cash operating activities:
Depreciation and amortization		32,986			34,880
Gain on disposal or impairment of assets		(2,710	)		(317	)
Impairment of goodwill and other intangibles		17,803			-
Deferred income taxes		1,404			302
Non-cash stock compensation expense		1,710			3,437
Changes in operating assets and liabilities:
Accounts receivable		6,913			585
Other assets		4,390			3,561
Deferred costs		(1,048	)		(5,786	)
Accounts payable and other liabilities		1,320			(3,626	)
Deferred revenue		17,121			10,780
Net cash provided by operating activities		82,540			64,230
Cash flows from investing activities:
Capitalized software		(1,647	)		(1,025	)
Capital expenditures		(14,436	)		(16,322	)
Data acquisition costs		(3,999	)		(3,765	)
Payments received from investments		370			-
Net cash used by investing activities		(19,712	)		(21,112	)
Cash flows from financing activities:
Payments of debt		(31,993	)		(41,522	)
Sale of common stock		4,500			2,503
Acquisition of treasury stock		(8,727	)		-
Proceeds from partner's contributions		-			347
Net cash used by financing activities		(36,220	)		(38,672	)
Effect of exchange rate changes on cash		142			106

Net change in cash and cash equivalents		26,750			4,552
Cash and cash equivalents at beginning of period		119,113			199,334
Cash and cash equivalents at end of period		145,863			203,886

Supplemental cash flow information:
Cash paid during the period for:
Interest		4,160			6,052
Income taxes		9,784			1,913
Payments on capital leases and installment payment arrangements		4,709			5,726
Payments on software and data license liabilities		125			120
Other debt payments, excluding line of credit		2,159			2,143
Prepayment of debt		25,000			33,533
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		4,042			4,779


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Nine Months Ended

	December 31,

	2011			2010

Cash flows from operating activities:
Net earnings		25,643			42,547
Non-cash operating activities:
Depreciation and amortization		103,240			108,586
Loss (gain) on disposal or impairment of assets		183			(272	)
Impairment of goodwill and other intangibles		17,803			-
Deferred income taxes		2,539			4,245
Non-cash stock compensation expense		6,910			9,897
Changes in operating assets and liabilities:
Accounts receivable		(2,763	)		(7,913	)
Other assets		(202	)		(4,590	)
Deferred costs		(1,879	)		(28,407	)
Accounts payable and other liabilities		7,391			(11,653	)
Deferred revenue		14,143			11,744
Net cash provided by operating activities		173,008			124,184
Cash flows from investing activities:
Disposition of operations		(1,043	)		-
Capitalized software		(3,167	)		(3,592	)
Capital expenditures		(39,147	)		(46,808	)
Data acquisition costs		(8,549	)		(10,716	)
Payments from investments		370			175
Net cash paid in acquisitions		(255	)		(12,927	)
Net cash used by investing activities		(51,791	)		(73,868	)
Cash flows from financing activities:
Payments of debt		(145,768	)		(78,089	)
Sale of common stock		7,318			7,323
Acquisition of treasury stock		(42,827	)		-
Proceeds from partner's contributions		-			480
Contingent consideration paid for prior acquisitions		(326	)		-
Net cash used by financing activities		(181,603	)		(70,286	)
Effect of exchange rate changes on cash		(724	)		(198	)

Net change in cash and cash equivalents		(61,110	)		(20,168	)
Cash and cash equivalents at beginning of period		206,973			224,054
Cash and cash equivalents at end of period		145,863			203,886

Supplemental cash flow information:
Cash paid during the period for:
Interest		15,491			17,728
Income taxes		15,171			22,995
Payments on capital leases and installment payment arrangements		13,687			17,105
Payments on software and data license liabilities		616			1,177
Other debt payments, excluding line of credit		6,465			6,274
Prepayment of debt		125,000			53,533
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		8,733			22,429


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)


	06/30/10			09/30/10			12/31/10			03/31/11			FY2011			06/30/11			09/30/11			12/31/11			FY2012

Net cash provided by operating activities		16,988			42,966			64,230			42,035			166,219			32,754			57,714			82,540			173,008

Less:
Capitalized software		(1,226	)		(1,341	)		(1,025	)		(963	)		(4,555	)		(529	)		(991	)		(1,647	)		(3,167	)
Capital expenditures		(8,752	)		(21,734	)		(16,322	)		(12,213	)		(59,021	)		(12,577	)		(12,134	)		(14,436	)		(39,147	)
Data acquisition costs		(4,326	)		(2,625	)		(3,765	)		(2,650	)		(13,366	)		(2,776	)		(1,774	)		(3,999	)		(8,549	)
Payments on capital leases and installment payment arrangements		(5,968	)		(5,411	)		(5,726	)		(5,252	)		(22,357	)		(4,794	)		(4,184	)		(4,709	)		(13,687	)
Payments on software and data license liabilities		(893	)		(164	)		(120	)		(4,139	)		(5,316	)		(367	)		(124	)		(125	)		(616	)
Other required debt payments		(2,103	)		(2,028	)		(2,143	)		(2,154	)		(8,428	)		(2,151	)		(2,155	)		(2,159	)		(6,465	)

Total		(6,280	)		9,663			35,129			14,664			53,176			9,560			36,352			55,465			101,377


CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)

																												Q3 FY11 to Q3 FY12
	06/30/10			09/30/10			12/31/10			03/31/11			FY2011			06/30/11			09/30/11			12/31/11			YTD FY2012			%			$
Revenue:
Marketing and data services		168,622			185,915			188,663			192,906			736,106			185,058			195,944			187,822			568,824			-0.4	%	(841	)
IT Infrastructure management services		73,138			75,749			78,994			74,750			302,631			73,050			73,712			77,173			223,935			-2.3	%	(1,821	)
Other services		17,419			17,781			20,248			19,570			75,018			17,936			16,776			15,898			50,610			-21.5	%	(4,350	)
Total revenue		259,179			279,445			287,905			287,226			1,113,755			276,044			286,432			280,893			843,369			-2.4	%	(7,012	)

Operating costs and expenses:
Cost of revenue		202,800			216,271			218,474			215,619			853,164			219,804			219,112			215,468			654,384			1.4	%	3,006
Selling, general and administrative		35,798			38,098			39,229			38,017			151,142			35,292			37,804			34,775			107,871			11.4	%	4,454
Impairment of goodwill and other intangibles		-			-			-			79,674			79,674			-			-			17,803			17,803					(17,803	)
Gains, losses and other items, net		(57	)		78			(3,640	)		8,219			4,600			244			2,465			(2,671	)		38			26.6	%	(969	)

Total operating costs and expenses		238,541			254,447			254,063			341,529			1,088,580			255,340			259,381			265,375			780,096			-4.5	%	(11,312	)

Income (loss) from operations		20,638			24,998			33,842			(54,303	)		25,175			20,704			27,051			15,518			63,273			-54.1	%	(18,324	)
% Margin		8.0	%		8.9	%		11.8	%		-18.9	%		2.3	%		7.5	%		9.4	%		5.5	%		7.5	%
Other income (expense)
Interest expense		(5,898	)		(6,260	)		(6,006	)		(5,659	)		(23,823	)		(5,455	)		(4,719	)		(3,883	)		(14,057	)		-35.3	%	2,123
Other, net		(451	)		111			(299	)		(827	)		(1,466	)		(87	)		(965	)		(98	)		(1,150	)		-67.2	%	201
Total other income (expense)		(6,349	)		(6,149	)		(6,305	)		(6,486	)		(25,289	)		(5,542	)		(5,684	)		(3,981	)		(15,207	)		-36.9	%	2,324

Earnings from continuing operations before income taxes		14,289			18,849			27,537			(60,789	)		(114	)		15,162			21,367			11,537			48,066			-58.1	%	(16,000	)
Income taxes		5,716			7,539			7,564			10,905			31,724			6,063			9,528			9,700			25,291			-28.2	%	(2,136	)

Net earnings from continuing operations		8,573			11,310			19,973			(71,694	)		(31,838	)		9,099			11,839			1,837			22,775			-90.8	%	(18,136	)

Earnings from discontinued operations, net of tax		863			1,387			441			705			3,396			916			1,138			814			2,868			84.6	%	373

Net Earnings		9,436			12,697			20,414			(70,989	)		(28,442	)		10,015			12,977			2,651			25,643			-87.0	%	(17,763	)

Less: Net earnings (loss) attributable
to noncontrolling interest		(369	)		(584	)		(409	)		(3,933	)		(5,295	)		(960	)		685			(5,279	)		(5,554	)		1190.7	%	(4,870	)

Net earnings (loss) attributable to Acxiom		9,805			13,281			20,823			(67,056	)		(23,147	)		10,975			12,292			7,930			31,197			-61.9	%	(12,893	)

Diluted earnings per share - net earnings (loss) attributable
to Acxiom stockholders		0.12			0.16			0.25			(0.83	)		0.29			0.13			0.15			0.10			0.39			-60.0	%	(0.15	)

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)

	06/30/10			09/30/10			12/31/10			03/31/11			FY2011			06/30/11			09/30/11			12/31/11			YTD FY2012

Revenue:

Marketing and data services		168,622			185,915			188,663			192,906			736,106			185,058			195,944			187,822			568,824
IT Infrastructure management services		73,138			75,749			78,994			74,750			302,631			73,050			73,712			77,173			223,935
Other services		17,419			17,781			20,248			19,570			75,018			17,936			16,776			15,898			50,610

Total revenue		259,179			279,445			287,905			287,226			1,113,755			276,044			286,432			280,893			843,369

Income from operations:

Marketing and data services		15,360			21,364			21,361			29,169			87,254			17,339			27,260			21,819			66,418
IT Infrastructure management services		5,835			4,550			8,588			5,494			24,467			4,247			5,091			9,795			19,133
Other services		(614	)		(838	)		253			(1,073	)		(2,272	)		(638	)		(2,835	)		(964	)		(4,437	)
Corporate		57			(78	)		3,640			(87,893	)		(84,274	)		(244	)		(2,465	)		(15,132	)		(17,841	)

Total income (loss) from operations		20,638			24,998			33,842			(54,303	)		25,175			20,704			27,051			15,518			63,273

Margin:

Marketing and data services		9.1	%		11.5	%		11.3	%		15.1	%		11.9	%		9.4	%		13.9	%		11.6	%		11.7	%
IT Infrastructure management services		8.0	%		6.0	%		10.9	%		7.3	%		8.1	%		5.8	%		6.9	%		12.7	%		8.5	%
Other services		-3.5	%		-4.7	%		1.2	%		-5.5	%		-3.0	%		-3.6	%		-16.9	%		-6.1	%		-8.8	%

Total		8.0	%		8.9	%		11.8	%		-18.9	%		2.3	%		7.5	%		9.4	%		5.5	%		7.5	%

LiveRamp (RAMP) 8-KAcxiom Announces Third Quarter Results