f8kfin.htm

For more information, contact:

Katharine Boyce

Acxiom Investor Relations

501-342-1321

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2011 RESULTS

LITTLE ROCK, Ark. – May 11, 2011 — Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, today announced financial results for the fourth quarter and fiscal year ended March 31, 2011. Acxiom will hold a conference call at 10:00 a.m. CDT 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.

Jerry Gramaglia, Acxiom’s interim chief executive officer, said, “Our results for the fourth quarter and for the entire fiscal 2011 year were in line with our expectations expressed in our March 30th announcement. In the fourth quarter and continuing into fiscal year 2012, Acxiom’s focus is on delivering exceptional value to the world’s top marketers. In turn, we continue to be rewarded with long term renewals and significantly expanded business relationships.”

Fourth Quarter 2011 Highlights:

·	Revenue increased by 3.6% in the current quarter ended March 31, 2011 to $298.8 million, compared to $288.3 million for the quarter ended March 31, 2010.

Loss from operations of $53.0 million in the current-year fourth quarter compared to income from operations of $35.2 million in the fourth quarter of the prior year. Excluding the impact of unusual items, income from operations in the current quarter would be $34.9 million, a 4.3% increase over the prior-year quarter.

Loss per diluted share attributable to Acxiom stockholders of $0.83 in the current quarter, compared to earnings per share of $0.21 in the fourth quarter of fiscal 2010. Excluding the impact of unusual items in both periods, earnings per diluted share attributable to Acxiom stockholders would be $0.21 in the current period, a 10.5% increase over $0.19 the prior-year quarter.

·	Operating cash flow of $42.0 million, compared to $87.9 million in the fourth quarter a year ago.

·	Free cash flow available to equity of $14.7 million, compared to $43.1 million in the fourth 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.

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

Goodwill/Asset Impairment and Other Charges

Fourth-quarter loss per diluted share attributable to Acxiom stockholders of $0.83 includes $89.4 million or the equivalent of $1.04 per share in unusual expenses. The major components of the unusual expenses are:

·	Goodwill/Asset Impairment of $79.7 million. $15.4 million related to European Services, $57.1 million related to European Products and $7.2 million related to Middle East, North Africa;

·	Disposal of operations of $3.3 million related to the disposal of the Netherlands and Portugal operations, of which $1.1 million represents cash payments to be made in future periods; and

·	Other charges of $6.5 million including $5.5 million to be paid in future periods.

Operational Highlights:

Information Services: Revenue for the quarter ended March 31, 2011 was $224.6 million, up 1.4%, compared to $221.6 million for the quarter ended March 31, 2010. Income from operations for the current fourth quarter was $21.2 million, down 23.4% compared to $27.6 million in the prior-year fourth quarter.

·	Information Products: Revenue for the quarter increased 11.2% to $74.2 million, compared with $66.8 million in the fourth quarter a year ago. Income from operations for the quarter was $13.7 million, compared to $5.8 million in the fourth quarter of the previous year.

Fiscal Year 2011 Highlights:

·	Revenue increased by 5.5% in fiscal 2011 to $1.160 billion, compared to $1.099 billion in fiscal 2010.

Income from operations of $30.9 million in the current year compared to income from operations of $98.8 million in the prior year. Excluding the impact of unusual items, income from operations in the current year would be $115.2 million compared to income from operations of $97.9 million in the prior year, an increase of 17.7%.

Loss per diluted share attributable to Acxiom stockholders of $0.29 in the current year, compared to income per share of $0.56 in fiscal 2010. Excluding the impact of unusual items in both years, earnings per diluted share attributable to Acxiom stockholders would be $0.68 in the current year, compared to $0.55 in the prior year, an increase of 23.6%.

·	Operating cash flow of $166.2 million, compared to $239.3 million in the prior year.

·	Free cash flow available to equity of $53.2 million, compared to $108.3 million in fiscal 2010. 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_Q4_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 future cash outlays included in unusual expenses recorded in the fourth quarter of fiscal 2011, 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 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 a new chief executive officer and chief financial officer; 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 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.


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


	For the Three Months Ended
	March 31,
										$		%
	2011			2010			Variance			Variance

Revenue:
Services		224,556			221,553			3,003			1.4	%
Products		74,240			66,789			7,451			11.2	%
Total revenue		298,796			288,342			10,454			3.6	%

Operating costs and expenses:
Cost of revenue
Services		176,065			166,085			(9,980	)		(6.0	%)
Products		47,551			45,835			(1,716	)		(3.7	%)
Total cost of revenue		223,616			211,920			(11,696	)		(5.5	%)

Services gross margin		21.6	%		25.0	%
Products gross margin		35.9	%		31.4	%
Total gross margin		25.2	%		26.5	%

Selling, general and administrative		40,324			43,013			2,689			6.3	%
Impairment of goodwill and other intangibles		79,674			-
Gains, losses and other items, net		8,219			(1,802	)		(10,021	)		(556.1	%)

Total operating costs and expenses		351,833			253,131			(98,702	)		(39.0	%)

Income (loss) from operations		(53,037	)		35,211			(88,248	)		(250.6	%)

Other income (expense):
Interest expense		(5,659	)		(5,865	)		206			3.5	%
Other, net		(827	)		122			(949	)		(777.9	%)

Total other income (expense)		(6,486	)		(5,743	)		(743	)		(12.9	%)

Earnings (loss) before income taxes		(59,523	)		29,468			(88,991	)		(302.0	%)

Income taxes		11,466			13,106			1,640			12.5	%

Net earnings (loss)		(70,989	)		16,362			(87,351	)		(533.9	%)

Less: Net loss attributable to noncontrolling interest		(3,933	)		(286	)		(3,647	)		-

Net earnings (loss) attributable to Acxiom		(67,056	)		16,648			(83,704	)		(502.8	%)

Earnings (loss) per share:

Basic		(0.88	)		0.21			(1.09	)		(519.0	%)

Diluted		(0.88	)		0.20			(1.08	)		(540.0	%)

Earnings (loss) per share attributable to Acxiom stockholders:

Basic		(0.83	)		0.21			(1.04	)		(495.2	%)

Diluted		(0.83	)		0.21			(1.04	)		(495.2	%)


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


	For the Twelve Months Ended
	March 31,
										$		%
	2011			2010			Variance			Variance

Revenue:
Services		893,594			849,432			44,162			5.2	%
Products		266,376			249,803			16,573			6.6	%
Total revenue		1,159,970			1,099,235			60,735			5.5	%

Operating costs and expenses:
Cost of revenue
Services		694,988			654,659			(40,329	)		(6.2	%)
Products		189,900			184,610			(5,290	)		(2.9	%)
Total cost of revenue		884,888			839,269			(45,619	)		(5.4	%)

Services gross margin		22.2	%		22.9	%
Products gross margin		28.7	%		26.1	%
Total gross margin		23.7	%		23.6	%

Selling, general and administrative		159,884			162,097			2,213			1.4	%
Impairment of goodwill and other intangibles		79,674			-
Gains, losses and other items, net		4,600			(944	)		(5,544	)		(587.3	%)

Total operating costs and expenses		1,129,046			1,000,422			(128,624	)		(12.9	%)

Income from operations		30,924			98,813			(67,889	)		(68.7	%)

Other income (expense):
Interest expense		(23,823	)		(22,480	)		(1,343	)		(6.0	%)
Other, net		(1,466	)		425			(1,891	)		(444.9	%)

Total other income (expense)		(25,289	)		(22,055	)		(3,234	)		(14.7	%)

Earnings before income taxes		5,635			76,758			(71,123	)		(92.7	%)

Income taxes		34,077			32,599			(1,478	)		(4.5	%)

Net earnings (loss)		(28,442	)		44,159			(72,601	)		(164.4	%)

Less: Net loss attributable to noncontrolling interest		(5,295	)		(390	)		(4,905	)		-

Net earnings (loss) attributable to Acxiom		(23,147	)		44,549			(67,696	)		(152.0	%)

Earnings (loss) per share:

Basic		(0.36	)		0.56			(0.92	)		(164.3	%)

Diluted		(0.36	)		0.55			(0.91	)		(165.5	%)

Earnings (loss) per share attributable to Acxiom stockholders:

Basic		(0.29	)		0.56			(0.85	)		(151.8	%)

Diluted		(0.29	)		0.56			(0.85	)		(151.8	%)


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 Twelve Months Ended
	March 31,						March 31,
	2011			2010			2011			2010

Earnings (loss) before income taxes		(59,523	)		29,468			5,635			76,758

Unusual items		89,449			(1,802	)		85,830			(944	)

Earnings before income taxes and unusual items		29,926			27,666			91,465			75,814


Earnings (loss) before income taxes		(59,523	)		29,468			5,635			76,758

Income taxes		11,466			13,106			34,077			32,599

Net earnings (loss)		(70,989	)		16,362			(28,442	)		44,159

Less: Net earnings attributable to noncontrolling interest		(3,933	)		(286	)		(5,295	)		(390	)

Net earnings (loss) attributable to Acxiom		(67,056	)		16,648			(23,147	)		44,549

Earnings (loss) per share attributable to Acxiom stockholders:

Basic		(0.83	)		0.21			(0.29	)		0.56

Diluted		(0.83	)		0.21			(0.29	)		0.56

Unusual items:

Disposal of Netherlands and Portugal operations		3,340			-			3,340			-
Restructuring costs		5,503			-			5,503			-
Goodwill and other intangibles impairment		79,674			-			79,674			-
Earnout adjustments		(624	)		-			(1,058	)		-
Investment impairment		1,556			-			1,556			-
Adjustments to previous reserves		-			(1,802	)		(3,185	)		(944	)

Total unusual items		89,449			(1,802	)		85,830			(944	)

Earnings before income taxes
and excluding unusual items		29,926			27,666			91,465			75,814

Income taxes		13,260			12,314			37,848			32,141

Non-GAAP net earnings		16,666			15,352			53,617			43,673

Less: Net earnings attributable to noncontrolling interest		(827	)		(286	)		(2,189	)		(390	)

Non-GAAP Net earnings attributable to Acxiom		17,493			15,638			55,806			44,063

Non-GAAP earnings per share attributable to Acxiom stockholders:

Basic		0.22			0.20			0.70			0.56

Diluted		0.21			0.19			0.68			0.55

Diluted weighted average shares		82,224						81,765


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

	For the Three Months Ended						For the Twelve Months Ended
	March 31,						March 31,
	2011			2010			2011			2010

Income (loss) from operations		(53,037	)		35,211			30,924			98,813

Unusual items		87,893			(1,802	)		84,274			(944	)

Income from operations before unusual items		34,856			33,409			115,198			97,869



Unusual items:

Disposal of Netherlands and Portugal operations		3,340			-			3,340			-
Restructuring costs		5,503			-			5,503			-
Goodwill and other intangibles impairment		79,674			-			79,674			-
Earnout adjustments		(624	)		-			(1,058	)		-
Adjustments to previous reserves		-			(1,802	)		(3,185	)		(944	)

Total unusual items		87,893			(1,802	)		84,274			(944	)


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS (LOSS) PER SHARE
(Unaudited)
(In thousands, except earnings per share)


	For the Three Months Ended

	March 31,			March 31,
	2011			2010

Basic earnings (loss) per share:

Numerator - net earnings (loss)		(70,989	)		16,362

Denominator - weighted-average shares outstanding		80,423			79,245

Basic earnings (loss) per share		(0.88	)		0.21

Diluted earnings (loss) per share:

Numerator - net earnings (loss)		(70,989	)		16,362

Denominator - weighted-average shares outstanding		80,423			79,245

Dilutive effect of common stock options, warrants and restricted stock		-			1,395

		80,423			80,640

Diluted earnings (loss) per share		(0.88	)		0.20





Basic earnings (loss) per share attributable to Acxiom stockholders:

Numerator - net earnings (loss) attributable to Acxiom		(67,056	)		16,648

Denominator - weighted-average shares outstanding		80,423			79,245

Basic earnings (loss) per share attributable to Acxiom stockholders		(0.83	)		0.21

Diluted earnings (loss) per share attributable to Acxiom stockholders:

Numerator - net earnings (loss) attributable to Acxiom		(67,056	)		16,648

Denominator - weighted-average shares outstanding		80,423			79,245

Dilutive effect of common stock options, warrants, and restricted stock		-			1,395

		80,423			80,640

Diluted earnings (loss) per share attributable to Acxiom stockholders		(0.83	)		0.21


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS (LOSS) PER SHARE
(Unaudited)
(In thousands, except earnings per share)


	For the Twelve Months Ended

	March 31,			March 31,
	2011			2010

Basic earnings (loss) per share:

Numerator - net earnings (loss)		(28,442	)		44,159

Denominator - weighted-average shares outstanding		80,111			78,974

Basic earnings (loss) per share		(0.36	)		0.56

Diluted earnings (loss) per share:

Numerator - net earnings (loss)		(28,442	)		44,159

Denominator - weighted-average shares outstanding		80,111			78,974

Dilutive effect of common stock options, warrants and restricted stock		-			751

		80,111			79,725

Diluted earnings (loss) per share		(0.36	)		0.55





Basic earnings (loss) per share attributable to Acxiom stockholders:

Numerator - net earnings (loss) attributable to Acxiom		(23,147	)		44,549

Denominator - weighted-average shares outstanding		80,111			78,974

Basic earnings (loss) per share attributable to Acxiom stockholders		(0.29	)		0.56

Diluted earnings (loss) per share attributable to Acxiom stockholders:

Numerator - net earnings (loss) attributable to Acxiom		(23,147	)		44,549

Denominator - weighted-average shares outstanding		80,111			78,974

Dilutive effect of common stock options, warrants, and restricted stock		-			751

		80,111			79,725

Diluted earnings (loss) per share attributable to Acxiom stockholders		(0.29	)		0.56


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


	For the Three Months Ended

	March 31,			March 31,
Revenue:	2011			2010

Information services		224,556			221,553
Information products		74,240			66,789

Total revenue		298,796			288,342


Income from operations:

Information services		21,181			27,639
Information products		13,675			5,770
Other		(87,893	)		1,802

Total income (loss) from operations		(53,037	)		35,211

Margin:

Information services		9.4	%		12.5	%
Information products		18.4	%		8.6	%

Total margin		-17.8	%		12.2	%


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


	For the Twelve Months Ended

	March 31,			March 31,
Revenue:	2011			2010

Information services		893,594			849,432
Information products		266,376			249,803

Total revenue		1,159,970			1,099,235


Income from operations:

Information services		91,402			91,013
Information products		23,796			6,856
Other		(84,274	)		944

Total income from operations		30,924			98,813

Margin:

Information services		10.2	%		10.7	%
Information products		8.9	%		2.7	%

Total margin		2.7	%		9.0	%


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

	March 31,			March 31,						$		%
	2011			2010			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		207,023			224,104			(17,081	)		(7.6	%)
Trade accounts receivable, net		176,654			168,522			8,132			4.8	%
Deferred income taxes		12,480			11,874			606			5.1	%
Refundable income taxes		7,402			-			7,402			100.0	%
Other current assets		55,691			54,205			1,486			2.7	%

Total current assets		459,250			458,705			545			0.1	%

Property and equipment		888,717			824,084			64,633			7.8	%
Less - accumulated depreciation and amortization		633,410			587,245			46,165			7.9	%

Property and equipment, net		255,307			236,839			18,468			7.8	%

Software, net of accumulated amortization		26,412			38,845			(12,433	)		(32.0	%)
Goodwill		417,654			470,261			(52,607	)		(11.2	%)
Purchased software licenses, net of accumulated amortization		38,583			51,356			(12,773	)		(24.9	%)
Deferred costs, net		81,837			68,914			12,923			18.8	%
Data acquisition costs		17,627			21,931			(4,304	)		(19.6	%)
Other assets, net		9,955			16,569			(6,614	)		(39.9	%)

		1,306,625			1,363,420			(56,795	)		(4.2	%)

Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		27,978			42,106			14,128			33.6	%
Trade accounts payable		27,506			42,774			15,268			35.7	%
Accrued payroll and related expenses		42,236			36,517			(5,719	)		(15.7	%)
Other accrued expenses		75,852			75,631			(221	)		(0.3	%)
Deferred revenue		55,921			55,567			(354	)		(0.6	%)
Income taxes		-			2,460			2,460			100.0	%

Total current liabilities		229,493			255,055			25,562			10.0	%

Long-term debt		394,260			458,629			64,369			14.0	%

Deferred income taxes		84,360			61,284			(23,076	)		(37.7	%)

Other liabilities		7,478			9,954			2,476			24.9	%

Stockholders' equity:
Common stock		11,777			11,662			115			1.0	%
Additional paid-in capital		837,439			814,929			22,510			2.8	%
Retained earnings		459,096			482,243			(23,147	)		(4.8	%)
Accumulated other comprehensive income		15,991			4,167			11,824			283.8	%
Treasury stock, at cost		(739,125	)		(738,601	)		(524	)		0.1	%
Total Acxiom stockholders' equity		585,178			574,400			10,778			1.9	%
Noncontrolling interest		5,856			4,097			1,759			42.9	%

Total equity		591,034			578,497			12,537			2.2	%

		1,306,625			1,363,419			(56,794	)		(4.2	%)


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

	For the Three Months Ended

	March 31,

	2011			2010

Cash flows from operating activities:
Net earnings (loss)		(70,989	)		16,362
Non-cash operating activities:
Impairment of goodwill and other intangibles		79,674			-
Depreciation and amortization		37,769			42,652
Loss (Gain) on disposal or impairment of assets		4,155			7
Deferred income taxes		15,102			9,710
Non-cash stock compensation expense		3,200			2,502
Changes in operating assets and liabilities:
Accounts receivable		(5,111	)		10,290
Other assets		2,197			(9,742	)
Deferred costs		(978	)		(4,908	)
Accounts payable and other liabilities		(12,015	)		22,999
Deferred revenue		(10,969	)		(1,968	)
Net cash provided by operating activities		42,035			87,904
Cash flows from investing activities:
Disposal of operations		(1,079	)		-
Capitalized software		(963	)		(1,596	)
Capital expenditures		(12,213	)		(26,536	)
Data acquisition costs		(2,650	)		(4,577	)
Payments for investments		-			(1,000	)
Net cash used by investing activities		(16,905	)		(33,709	)
Cash flows from financing activities:
Payments of debt		(24,012	)		(32,079	)
Sale of common stock		1,997			2,911
Tax impact of stock options exercised		(316	)		(683	)
Net cash used by financing activities		(22,331	)		(29,851	)
Effect of exchange rate changes on cash		288			(822	)

Net change in cash and cash equivalents		3,087			23,522
Cash and cash equivalents at beginning of period		203,936			200,582
Cash and cash equivalents at end of period		207,023			224,104

Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		6,158			4,530
Income taxes		2,345			901
Payments on capital leases and installment payment arrangements		5,252			7,090
Payments on software and data license liabilities		4,139			1,392
Other debt payments, excluding line of credit		2,154			3,597
Prepayment of debt		12,467			20,000
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		1,324			5,946
Software licenses and maintenance acquired under software obligation		-			1,560


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

	For the Twelve Months Ended

	March 31,

	2011			2010

Cash flows from operating activities:
Net earnings		(28,442	)		44,159
Non-cash operating activities:
Impairment of goodwill and other intangibles		79,674			-
Depreciation and amortization		146,355			167,564
Loss (gain) on disposal or impairment of assets		3,883			417
Deferred income taxes		19,347			32,810
Non-cash stock compensation expense		13,097			10,790
Changes in operating assets and liabilities:
Accounts receivable		(13,024	)		10,295
Other assets		(2,394	)		2,171
Deferred costs		(29,385	)		(20,289	)
Accounts payable and other liabilities		(23,667	)		(8,215	)
Deferred revenue		775			(420	)
Net cash provided by operating activities		166,219			239,282
Cash flows from investing activities:
Disposal of operations		(1,079	)		-
Sale of assets		-			1,058
Capitalized software		(4,555	)		(8,257	)
Capital expenditures		(59,021	)		(57,908	)
Data acquisition costs		(13,366	)		(18,808	)
Payments from (for) investments		175			(2,000	)
Net cash paid in acquisitions		(12,927	)		(3,428	)
Net cash used by investing activities		(90,773	)		(89,343	)
Cash flows from financing activities:
Payments of debt		(102,101	)		(104,521	)
Fees for debt refinancing		-			(4,564	)
Sale of common stock		9,320			5,926
Tax impact of stock options exercised		(316	)		(683	)
Acquisition of treasury stock		-			(307	)
Noncontrolling interests equity contributions		480			457
Net cash used by financing activities		(92,617	)		(103,692	)
Effect of exchange rate changes on cash		90			691

Net change in cash and cash equivalents		(17,081	)		46,938
Cash and cash equivalents at beginning of period		224,104			177,166
Cash and cash equivalents at end of period		207,023			224,104

Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		23,886			21,337
Income taxes		25,339			(7,549	)
Payments on capital leases and installment payment arrangements		22,357			29,697
Payments on software and data license liabilities		5,316			7,526
Other debt payments, excluding line of credit		8,428			9,798
Prepayment of debt		66,000			57,500
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		23,753			24,193
Software licenses and maintenance acquired under software obligation		-			2,171


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			03/31/11			FY2011

Net cash provided by operating activities		16,166			60,703			74,509			87,904			239,282			16,988			42,966			64,230			42,035			166,219

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	)		(963	)		(4,555	)
Capital expenditures		(7,431	)		(14,462	)		(9,479	)		(26,536	)		(57,908	)		(8,752	)		(21,734	)		(16,322	)		(12,213	)		(59,021	)
Data acquisition costs		(5,777	)		(3,004	)		(5,450	)		(4,577	)		(18,808	)		(4,326	)		(2,625	)		(3,765	)		(2,650	)		(13,366	)
Payments on capital leases and installment payment arrangements		(7,794	)		(7,504	)		(7,309	)		(7,090	)		(29,697	)		(5,968	)		(5,411	)		(5,726	)		(5,252	)		(22,357	)
Payments on software and data license liabilities		(3,878	)		(1,840	)		(416	)		(1,392	)		(7,526	)		(893	)		(164	)		(120	)		(4,139	)		(5,316	)
Other required debt payments		(2,052	)		(2,058	)		(2,091	)		(3,597	)		(9,798	)		(2,103	)		(2,028	)		(2,143	)		(2,154	)		(8,428	)

Total		(13,150	)		29,404			48,976			43,116			108,346			(6,280	)		9,663			35,129			14,664			53,176


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

																															Q4 FY10 to Q4 FY11
	06/30/09			09/30/09			12/31/09			03/31/10			FY2010			06/30/10			09/30/10			12/31/10			03/31/11			FY2011			%			$
Revenue:
Services		199,326			210,213			218,340			221,553			849,432			210,656			225,584			232,798			224,556			893,594			1.4	%		3,003
Products		56,655			60,892			65,467			66,789			249,803			59,739			66,085			66,312			74,240			266,376			11.2	%		7,451
Total revenue		255,981			271,105			283,807			288,342			1,099,235			270,395			291,669			299,110			298,796			1,159,970			3.6	%		10,454

Operating costs and expenses:
Cost of revenue
Services		159,576			165,792			163,206			166,085			654,659			164,650			175,687			178,586			176,065			694,988			6.0	%		9,980
Products		45,919			46,129			46,727			45,835			184,610			45,771			48,320			48,258			47,551			189,900			3.7	%		1,716
Total cost of revenue		205,495			211,921			209,933			211,920			839,269			210,421			224,007			226,844			223,616			884,888			5.5	%		11,696


Selling, general and administrative		37,643			37,964			43,477			43,013			162,097			37,955			40,274			41,331			40,324			159,884			-6.3	%		(2,689	)
Impairment of goodwill and other intangibles																										79,674			79,674						79,674
Gains, losses and other items, net		347			(27	)		538			(1,802	)		(944	)		(57	)		78			(3,640	)		8,219			4,600			-556.1	%		10,021

Total operating costs and expenses		243,485			249,858			253,948			253,131			1,000,422			248,319			264,359			264,535			351,833			1,129,046			-39.0	%		(98,702	)

Income from operations		12,496			21,247			29,859			35,211			98,813			22,076			27,310			34,575			(53,037	)		30,924			-250.6	%		(88,248	)
% Margin		4.9	%		7.8	%		10.5	%		12.2	%		9.0	%		8.2	%		9.4	%		11.6	%		-17.8	%		2.7	%
Other income (expense)
Interest expense		(5,505	)		(5,423	)		(5,687	)		(5,865	)		(22,480	)		(5,898	)		(6,260	)		(6,006	)		(5,659	)		(23,823	)		-3.5	%		206
Other, net		(118	)		223			198			122			425			(451	)		111			(299	)		(827	)		(1,466	)		-777.9	%		(949	)
Total other income (expense)		(5,623	)		(5,200	)		(5,489	)		(5,743	)		(22,055	)		(6,349	)		(6,149	)		(6,305	)		(6,486	)		(25,289	)		12.9	%		(743	)

Earnings before income taxes		6,873			16,047			24,370			29,468			76,758			15,727			21,161			28,270			(59,523	)		5,635			-302.0	%		(88,991	)
Income taxes		2,679			6,602			10,212			13,106			32,599			6,291			8,464			7,856			11,466			34,077			12.5	%		1,640

Net earnings (loss)		4,194			9,445			14,158			16,362			44,159			9,436			12,697			20,414			(70,989	)		(28,442	)		-533.9	%		(87,351	)

Less: Net loss attributable
to noncontrolling interest		-			-			(104	)		(286	)		(390	)		(369	)		(584	)		(409	)		(3,933	)		(5,295	)		1275.2	%		(3,647	)

Net earnings (loss) attributable to Acxiom		4,194			9,445			14,262			16,648			44,549			9,805			13,281			20,823			(67,056	)		(23,147	)		-502.8	%		(83,704	)


Diluted earnings (loss) per share
attributable to Acxiom shareholders		0.05			0.12			0.18			0.21			0.56			0.12			0.16			0.25			(0.83	)		(0.29	)		-495.2	%		(1.04	)

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

																															Q4 FY10 to Q4 FY11
	06/30/09			09/30/09			12/31/09			03/31/10			FY2010			06/30/10			09/30/10			12/31/10			03/31/11			FY2011			%			$
Revenue:

Services		199,326			210,213			218,340			221,553			849,432			210,656			225,584			232,798			224,556			893,594			1.4	%		3,003
Products		56,655			60,892			65,467			66,789			249,803			59,739			66,085			66,312			74,240			266,376			11.2	%		7,451

Total revenue		255,981			271,105			283,807			288,342			1,099,235			270,395			291,669			299,110			298,796			1,159,970			3.6	%		10,454

Income from operations:

Services		15,838			19,971			27,565			27,639			91,013			20,879			22,952			26,390			21,181			91,402			-23.4	%		(6,458	)
Products		(2,995	)		1,249			2,832			5,770			6,856			1,140			4,436			4,545			13,675			23,796			137.0	%		7,905
Other		(347	)		27			(538	)		1,802			944			57			(78	)		3,640			(87,893	)		(84,274	)		-4977.5	%		(89,695	)

Total income (loss) from operations		12,496			21,247			29,859			35,211			98,813			22,076			27,310			34,575			(53,037	)		30,924			-250.6	%		(88,248	)

Margin:

Services		7.9	%		9.5	%		12.6	%		12.5	%		10.7	%		9.9	%		10.2	%		11.3	%		9.4	%		10.2	%
Products		-5.3	%		2.1	%		4.3	%		8.6	%		2.7	%		1.9	%		6.7	%		6.9	%		18.4	%		8.9	%

Total		4.9	%		7.8	%		10.5	%		12.2	%		9.0	%		8.2	%		9.4	%		11.6	%		-17.8	%		2.7	%