Acxiom, an enterprise data, analytics and software-as-a-service company, announced financial results for its third quarter ended Dec. 31, 2013.
In a release on Jan. 29, the Company said that total revenue for the third quarter was $278 million, up 2 percent from $273 million for the third quarter of fiscal 2013. Income from operations for the quarter was $20 million compared to $27 million for the prior-year period. Excluding unusual items, operating income was $29 million, up 10 percent from $27 million for the same period last year. Marketing and Data Services revenue for the third quarter increased 6 percent to $207 million compared to $195 million for the third quarter of last year. IT Infrastructure Management revenue was $62 million in the recent quarter, down 11 percent as expected from $70 million in the same period last year. Earnings per diluted share attributable to Acxiom stockholders were flat at $0.19. Excluding unusual items, diluted earnings per share were $0.25, up from $0.19 a year ago. Included in the current quarter is a tax-related adjustment which positively impacted both earnings-per-share measures by roughly $0.04 per share.
Operating cash flow was up 48 percent to $195 million for the trailing 12-month period compared to $133 million for the same period a year ago. Free cash flow to equity was up 136 percent to $103 million for the trailing 12-month period compared to $44 million for the same prior-year period. Free cash flow to equity for the prior-year trailing 12-month period excludes $73 million in proceeds from the sale of the company's background screening business. Free cash flow to equity is a non-GAAP financial measure.
"We are thrilled with the progress made since our release of the Acxiom Audience Operating System," said Acxiom CEO Scott Howe. "After just four months since launch, we now have more than 30 customers that are implementing or testing one or more aspects of AOS."
Third Quarter Highlights:
-Acxiom and Starcom MediaVest Group are entering into a partnership by which SMG becomes the first agency to license Acxiom Audience Operating System and bring it to market. SMG is a media agency.
-Acxiom signed seven new AOS agreements during the quarter with customers in several key industries including: Financial Services, Insurance, Telecommunications and Retail.
-Acxiom increased its share repurchase authorization from $200 million to $250 million. The company repurchased approximately 400,000 shares for $13.8 million during the quarter. Since inception of the share repurchase program in August 2011, the company has repurchased 12.3 million shares, or approximately 15 percent of the outstanding common stock, for $193 million.
-Subsequent to quarter end, Acxiom was named "Supplier of the Year" By Media Magazine, one of the industry's most respected publications, for its contributions to the industry with its recent launches of AOS and AboutTheData.com.
-On Nov. 6, Acxiom announced its plans to reduce its annual cost base by roughly $20 to $30 million over the next 6 to 12 months. The company is well underway on this initiative, and to date has taken steps to realize approximately $15 million in annualized cost reductions.
-Marketing and Data Services: Revenue for the third quarter was $207 million, up from $195 million for the same period a year ago. U.S. revenue increased 6 percent to $175 million in the current quarter compared to $165 million for the third quarter of last year. Income from operations for the third quarter was $23 million, up from $18 million for the prior-year period. Operating margin was 11 percent as compared to 9 percent for the third quarter of last year.
-IT Infrastructure Management: Revenue for the third quarter decreased as expected by 11 percent to $62 million compared to $70 million for the same period a year ago. Income from operations for the recent quarter was $6 million compared to $10 million for the prior-year period. Operating margin was approximately 10 percent, down from 14 percent in the third quarter of last year.
-Other Services: Revenue for the third quarter was $9 million, up from $8 million in the comparable prior-year period. Operating margin improved to approximately 6 percent compared to a loss in the third quarter of last year.
-As previously disclosed, we expect revenue for the fiscal year to be down slightly compared to $1.099 billion in fiscal 2013. The small revenue decrease is primarily driven by an expected decline in IT Infrastructure Management revenues.
-We now expect earnings per diluted share attributable to Acxiom stockholders to be as much as $0.82. This is an increase from our previous guidance of roughly flat compared to the prior-year period.
((Comments on this story may be sent to email@example.com))