ACXM Acxiom Holdngs (delisted)

Add after last paragraph of release: Fourth-Quarter and Fiscal Year 2008 financials. The corrected release reads: ACXIOM ANNOUNCES FOURTH-QUARTER AND FISCAL YEAR 2008 RESULTS Company Hosting an Investor Day June 17 Acxiom� Corporation (Nasdaq: ACXM) today announced financial results for the fourth quarter and fiscal year end ended March 31, 2008. Acxiom will hold a conference call at 4:30 p.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 host an investor day June 17 in New York. Details will be made available on the Acxiom website. Revenue for the fourth quarter was $349.8 million compared to $356.4 million in the fourth quarter of fiscal 2007. Operating loss for the quarter was $76.0 million and loss per diluted share was $0.76. The results for the quarter include the impact of $107.2 million of restructuring and other items (of which $104.5 million are included in the loss from operations, with the remainder included in other expense), which contributed to the loss by the equivalent of $0.91 per diluted share. For the 12-month period ended March 31, 2008, revenue totaled $1.384 billion compared to $1.391 billion in the prior year. Income from operations for the 12 month period was $40.2 million compared to $154.1 million a year ago. Loss per diluted share was $0.10 compared to earnings per diluted share of $0.80 in the prior year. The loss per diluted share includes the impact of $84.2 million, or the equivalent of $0.70 per diluted share, of expense from unusual items. A schedule is linked to this release outlining the restructuring and other items impacting the fourth quarter and the year end results. According to John Meyer, Acxiom Corp. CEO and President, �During my first 90 days I have focused on meeting our customers and our people, rationalizing costs and gaining a deeper understanding of our offerings and value propositions. I have also made a number of leadership and role changes. �We are working to develop strategic and operational plans to help overcome the current challenges we are facing in some industry sectors and to provide a springboard for growth in future years. The initial focus will be on our customers and potential customers, leveraging our capabilities and assets across all industries we serve, and creating a winning market-facing culture. We already have a very strong foundation to do that. I believe in this opportunity now even more than when I was evaluating coming on board.� Restatement, Restructuring and other items The Company is restating its financial statements for 2007, 2006, and prior years to correct its accounting related to accrued service revenue. The impact of this restatement will be a reduction in net income of $2.4 million in 2006 and $2.9 million in 2007. Accrued revenue, which is reflected in accounts receivable, will be reduced by a total of $52.2 million. Fourth-quarter loss per diluted share of $.76 includes $107.2 million or the equivalent of $0.91 per share in unusual expenses. The major components of the restructuring and other items are: Gains, losses and other - $74.5 million composed of: Restructuring charges - $42.9 million related to headcount reduction, real estate closure, contract termination; Closing operations - $13.5 million related to previously acquired operations and the flight department; Asset disposal/impairment - $15.0 million, primarily software; Other � $3.1 million related to legal, international and other; IT contract restructuring - $34.0 million reflected as increase in cost of services; Loss on investment - $2.7 million reflected in Other, net; Accrued revenue restatement - $.4.0 million increase in revenue. Of the $107.2 million in restructuring and other items, approximately $59.2 million represents balance sheet assets written down that do not require cash outlays. Approximately $48.0 million represents estimated cash payments to be made on obligations primarily related to headcount reductions, real estate and facilities lease terminations and an aircraft lease termination. The $48 million includes obligations of approximately $34 million to be paid in fiscal 2009, with the remainder in future periods. Details of Acxiom�s fourth-quarter results include: Revenue of $349.8 million compared to $356.4 million in the fourth quarter a year ago; Loss from operations of $76.0 million compared to income from operations of $28.4 million in the fourth quarter last year; Loss from operations this quarter included $107.2 million of restructuring and other items; Loss per diluted share of $0.76 compared to earnings per share of $0.07 in the fourth quarter of fiscal 2008; included in the loss per share of $0.76 is the negative impact of restructuring and other items which was the equivalent of $.91 per diluted share; Operating cash flow of $90.5 million compared to $76.5 million in the fourth quarter a year ago; Free cash flow available to equity of $14.7 million compared to $15.4 million 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 press release. Details of Acxiom�s fiscal year results include: Revenue of $1.384 billion compared to $1.390 billion in the prior year; Income from operations of $40.2 million in 2008 compared to $154.1 million in fiscal 2007; Loss per diluted share of $0.10 compared to earnings per diluted share of $0.80 in fiscal 2007; net restructuring and other items for the year were $84.2 million, or the equivalent of $0.70 per diluted share; In addition to the restructuring and other items in the fourth quarter detailed above, the company had a benefit of a net gain of $22.9 million comprised of: Gains from a merger termination payment and sale of assets of $68.2 million; Restructuring costs, transaction costs, retirement and loss on sale of assets of $30.0 million; Additional contract impairment in cost of services of $10.0 million; Reduction in revenue related to accrued revenue restatement to previous quarters of $5.2 million; Operating cash flow of $300.3 million compared to $260.0 million in the prior year; Free cash flow available to equity of $77.5 million compared to $55.2 million 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 press release. Segment information: Information Services Division: The division develops, sells and delivers industry-tailored solutions globally through the integration of products, services and consulting. Revenue for the quarter was $189.7 million, up 0.8 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was $741.3 million, up 1.8 percent from the previous year. Operating income for the quarter was $24.1 million, down 7.7 percent from the third quarter of the previous year. For the 12 months just ended, operating income was $97.2 million, down 22.0 percent from the previous 12-month period. Information Products Division: The division develops and sells all global data products, including InfoBase-X� and PersonicX�, as well as fraud and risk mitigation products sold in the U.S., including InsightIdentify. It focuses on product development, product lifecycle management, data content management and innovation. Revenue for the quarter was $115.2 million, up 5.2 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was $431.3 million, up 3.8 percent from the previous year. Operating income for the quarter was $13.1 million, up 45.9 percent from the fourth quarter of the previous year. For the 12 months just ended, operating income was $23.8 million, up 25.7 percent from the previous 12-month period. Infrastructure Management Division: The division develops and delivers information technology products and services that improve a company�s ability to manage its information technology delivery platform with lower costs and higher efficiencies. Such offerings include traditional IT outsourcing and transformational solutions such as the Acxiom data factory. Revenue for the quarter was $108.2 million, down 8.8 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was $447.5 million, down 6.1 percent from the previous year. Operating income for the quarter was $8.3 million, down 16.1 percent from the fourth quarter of the previous year. For the 12 months just ended, operating income was $44.3 million, down 10.3 percent from the previous 12-month period. Investor Day As mentioned above, the company will be hosting an investor day on June 17 and providing a forecast for fiscal 2009 at that time. Company management will also discuss operations and prospects at the investor day. The event will be held at the NASDAQ facilities in New York and will be web cast. Further information will be made available on our website at www.acxiom.com. Web Link to Financials http://www.acxiom.com/FY08_Q4_Financials is a link to the detailed financial information we typically attach to our earnings releases. About Acxiom Corporation At Acxiom, we make information intelligent for many of the world�s leading and most dynamic companies, enabling them to acquire new customers, retain their most valuable customers, communicate with customers in the methods and at the times they prefer, and make profitable marketing and business decisions. Acxiom�s unmatched customer insight is achieved by blending the world�s largest repository of consumer data, award-winning technology and analytics, multi-channel expertise, privacy leadership, and superior knowledge of a wide spectrum of industries. Founded in 1969, Acxiom (Nasdaq: ACXM) is headquartered in Little Rock, Arkansas, with locations throughout the United States and Europe, and in Australia and China. For more information about Acxiom, visit www.acxiom.com. This release and today�s conference call contain certain forward-looking statements that are subject to certain risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, our ability to timely complete the restatement of our historical financial results for the years ended, March 31, 2006 and March 31, 2007; the on-going review of the circumstances surrounding such restatements and the consequences thereof; and those additional factors detailed under the section titled �Risk Factors� and elsewhere in filings with the Securities and Exchange Commission made from time to time by Acxiom, including, but not limited to: its annual report on Form 10-K filed on May 30, 2007 and 10-K/A on July 30, 2007; recent quarterly reports on Form 10-Q; and other current reports on Form 8-K. Acxiom undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 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, � � $ � % 2008 2007 Variance � Variance � Revenue: Services 259,886 266,441 (6,555 ) (2.5 %) Data 89,911 � 89,957 � (46 ) (0.1 %) Total revenue 349,797 356,398 (6,601 ) (1.9 %) � Operating costs and expenses: Cost of revenue Services 235,742 209,830 25,912 12.3 % Data 58,153 � 52,991 � 5,162 9.7 % Total cost of revenue 293,895 262,821 31,074 11.8 % � Services gross margin 9.3 % 21.2 % Data gross margin 35.3 % 41.1 % Total gross margin 16.0 % 26.3 % � Selling, general and administrative 57,341 56,031 1,310 2.3 % Gains, losses and other items, net 74,519 � 9,122 � 65,397 100.0 % � Total operating costs and expenses 425,755 � 327,974 � 97,781 29.8 % � Income (loss) from operations (75,958 ) 28,424 � (104,382 ) (367.2 %) � Other income (expense): Interest expense (11,016 ) (15,002 ) 3,986 (26.6 %) Other, net (1,685 ) 1,444 � (3,129 ) (216.7 %) � Total other income (expense) (12,701 ) (13,558 ) 857 (6.3 %) � Earnings (loss) before income taxes (88,659 ) 14,866 (103,525 ) (696.4 %) � Income taxes (30,375 ) 9,136 � (39,511 ) (432.5 %) � Net earnings (loss) (58,284 ) 5,730 � (64,014 ) (1117.2 %) � Earnings (loss) per share: � Basic (0.76 ) 0.07 � (0.83 ) (1185.7 %) � Diluted (0.76 ) 0.07 � (0.83 ) (1185.7 %) � ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share) � � For the Twelve Months Ended March 31, � � $ � % 2008 2007 Variance � Variance � Revenue: Services 1,049,790 1,056,478 (6,688 ) (0.6 %) Data 334,289 � 334,033 � 256 0.1 % Total revenue 1,384,079 1,390,511 (6,432 ) (0.5 %) � Operating costs and expenses: Cost of revenue Services 858,173 806,991 51,182 6.3 % Data 229,587 � 206,629 � 22,958 11.1 % Total cost of revenue 1,087,760 1,013,620 74,140 7.3 % � Services gross margin 18.3 % 23.6 % Data gross margin 31.3 % 38.1 % Total gross margin 21.4 % 27.1 % � Selling, general and administrative 219,721 213,849 5,872 2.7 % Gains, losses and other items, net 36,352 � 8,897 � 27,455 100.0 % � Total operating costs and expenses 1,343,833 � 1,236,366 � 107,467 8.7 % � Income from operations 40,246 � 154,145 � (113,899 ) (73.9 %) � Other income (expense): Interest expense (51,230 ) (46,632 ) (4,598 ) 9.9 % Other, net 1,223 � 5,933 � (4,710 ) (79.4 %) � Total other income (expense) (50,007 ) (40,699 ) (9,308 ) 22.9 % � Earnings (loss) before income taxes (9,761 ) 113,446 (123,207 ) (108.6 %) � Income taxes (1,981 ) 45,573 � (47,554 ) (104.3 %) � Net earnings (loss) (7,780 ) 67,873 � (75,653 ) (111.5 %) � Earnings (loss) per share: � Basic (0.10 ) 0.82 � (0.92 ) (112.2 %) � Diluted (0.10 ) 0.80 � (0.90 ) (112.5 %) � ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings (loss) per share) � � For the Three Months Ended � March 31, March 31, 2008 2007 � Basic earnings per share: � Numerator - net earnings (loss) (58,284 ) 5,730 � Denominator - weighted-average shares outstanding 77,085 � 78,385 � Basic earnings (loss) per share (0.76 ) 0.07 � Diluted earnings per share: � Numerator - net earnings (loss) (58,284 ) 5,730 � Denominator - weighted-average shares outstanding 77,085 78,385 � Dilutive effect of common stock options, warrants and restricted stock - � 1,750 � 77,085 � 80,135 � Diluted earnings (loss) per share (0.76 ) 0.07 � ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS (LOSS) PER SHARE (Unaudited) (In thousands, except earnings (loss) per share) � � For the Twelve Months Ended � March 31, March 31, 2008 2007 � Basic earnings (loss) per share: � Numerator - net earnings (loss) (7,780 ) 67,873 � Denominator - weighted-average shares outstanding 79,123 � 82,564 � Basic earnings (loss) per share (0.10 ) 0.82 � Diluted earnings (loss) per share: � Numerator - net earnings (loss) (7,780 ) 67,873 � Denominator - weighted-average shares outstanding 79,123 82,564 � Dilutive effect of common stock options, warrants and restricted stock - � 2,115 � 79,123 � 84,679 � Diluted earnings (loss) per share (0.10 ) 0.80 � ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands) � � For the Three Months Ended � March 31, March 31, Revenue: 2008 2007 � Information services 189,727 188,265 Information products 115,189 109,546 Infrastructure management 108,169 118,593 Eliminations (63,288 ) (60,006 ) � Total revenue 349,797 � 356,398 � � � Income from operations: � Information services 24,114 26,121 Information products 13,129 8,997 Infrastructure management 8,271 9,858 Corporate & other (121,472 ) (16,552 ) � Total income (loss) from operations (75,958 ) 28,424 � � Margin: � Information services 12.7 % 13.9 % Information products 11.4 % 8.2 % Infrastructure management 7.6 % 8.3 % � Total margin -21.7 % 8.0 % � ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands) � � For the Twelve Months Ended � March 31, March 31, Revenue: 2008 2007 � Information services 741,259 728,014 Information products 431,316 415,417 Infrastructure management 447,488 476,333 Eliminations (235,984 ) (229,253 ) � Total revenue 1,384,079 � 1,390,511 � � � Income from operations: � Information services 97,248 124,628 Information products 23,783 18,922 Infrastructure management 44,287 49,381 Corporate & other (125,072 ) (38,786 ) � Total income from operations 40,246 � 154,145 � � Margin: � Information services 13.1 % 17.1 % Information products 5.5 % 4.6 % Infrastructure management 9.9 % 10.4 % � Total margin 2.9 % 11.1 % � ACXIOM CORPORATION AND SUBSIDIARIES DATA REVENUE AND COST OF DATA SUPPLEMENTAL SCHEDULE (Unaudited) (Dollars in thousands) � � For the Three Months Ended � � � March 31, March 31, $ % 2008 2007 Variance � Variance � Data 67,817 69,596 (1,779 ) (2.6 %) Passthrough data 22,094 � 20,361 � 1,733 8.5 % � Total data revenue 89,911 � 89,957 � (46 ) (0.1 %) � � Cost of data revenue: Data 36,059 32,630 3,429 10.5 % Passthrough data 22,094 � 20,361 � 1,733 8.5 % � Total cost of data 58,153 � 52,991 � 5,162 9.7 % � Margin: � Data 46.8 % 53.1 % Passthrough data 0.0 % 0.0 % Total data 35.3 % 41.1 % � ACXIOM CORPORATION AND SUBSIDIARIES DATA REVENUE AND COST OF DATA SUPPLEMENTAL SCHEDULE (Unaudited) (Dollars in thousands) � � For the Twelve Months Ended � � � March 31, March 31, $ % 2008 2007 Variance � Variance � Data 252,287 255,299 (3,012 ) (1.2 %) Passthrough data 82,002 � 78,734 � 3,268 4.2 % � Total data revenue 334,289 � 334,033 � 256 0.1 % � � Cost of data revenue: Data 147,585 127,895 19,690 15.4 % Passthrough data 82,002 � 78,734 � 3,268 4.2 % � Total cost of data 229,587 � 206,629 � 22,958 11.1 % � Margin: � Data 41.5 % 49.9 % Passthrough data 0.0 % 0.0 % Total data 31.3 % 38.1 % � ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) � � March 31, � March 31, � $ � % 2008 2007 Variance � Variance Assets Current assets: Cash and cash equivalents 62,661 37,776 24,885 65.9 % Trade accounts receivable, net 216,462 234,511 (18,049 ) (7.7 %) Refundable income taxes 16,080 7,657 8,423 110.0 % Deferred income taxes 44,211 41,850 2,361 5.6 % Other current assets 45,645 � 59,252 � (13,607 ) (23.0 %) � Total current assets 385,059 � 381,046 � 4,013 1.1 % � Property and equipment 765,046 733,175 31,871 4.3 % Less - accumulated depreciation and amortization 498,777 � 420,883 � 77,894 18.5 % � Property and equipment, net 266,269 � 312,292 � (46,023 ) (14.7 %) � Software, net of accumulated amortization 59,263 44,289 14,974 33.8 % Goodwill 484,796 522,046 (37,250 ) (7.1 %) Purchased software licenses, net of accumulated amortization 111,574 151,326 (39,752 ) (26.3 %) Deferred costs, net 90,707 137,684 (46,977 ) (34.1 %) Data acquisition costs 51,566 35,398 16,168 45.7 % Other assets, net 22,621 � 39,993 � (17,372 ) (43.4 %) � 1,471,855 � 1,624,074 � (152,219 ) (9.4 %) � Liabilities and Stockholders' Equity Current liabilities: Current installments of long-term debt 69,259 106,921 (37,662 ) (35.2 %) Trade accounts payable 45,749 54,808 (9,059 ) (16.5 %) Accrued payroll and related expenses 39,061 33,663 5,398 16.0 % Other accrued expenses 121,441 79,078 42,363 53.6 % Deferred revenue 64,116 � 113,318 � (49,202 ) (43.4 %) � Total current liabilities 339,626 � 387,788 � (48,162 ) (12.4 %) � Long-term debt 575,308 648,879 (73,571 ) (11.3 %) � Deferred income taxes 51,429 97,926 (46,497 ) (47.5 %) � Other liabilities 4,980 - 4,980 100.0 % � Stockholders' equity: Common stock 11,428 11,145 283 2.5 % Additional paid-in capital 779,815 718,336 61,479 8.6 % Retained earnings 413,758 431,014 (17,256 ) (4.0 %) Accumulated other comprehensive income 33,976 17,526 16,450 93.9 % Treasury stock, at cost (738,465 ) (688,540 ) (49,925 ) 7.3 % � Total stockholders' equity 500,512 � 489,481 � 11,031 2.3 % � 1,471,855 � 1,624,074 � (152,219 ) (9.4 %) � ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) � � For the Three Months Ended March 31, 2008 � 2007 � Cash flows from operating activities: Net earnings (loss) (58,284 ) 5,730 Non-cash operating activities: Non-cash impact of restructuring 72,503 - Depreciation and amortization 95,447 59,187 Loss (gain) on disposal or impairment of assets, net 2,708 (235 ) Deferred income taxes (672 ) 16,770 Non-cash stock compensation expense 3,254 1,124 Changes in operating assets and liabilities: Accounts receivable 11,153 (13,499 ) Other assets (10,510 ) (16,942 ) Accounts payable and other liabilities (17,262 ) 11,804 Deferred revenue (7,863 ) 12,595 � Net cash provided by operating activities 90,474 � 76,534 � Cash flows from investing activities: Capitalized software (6,571 ) (8,000 ) Capital expenditures (6,551 ) (8,230 ) Deferral of costs (21,482 ) (17,092 ) Payments received from investments - 50 Net cash paid in acquisitions (2,044 ) (18,667 ) Net cash used by investing activities (36,648 ) (51,939 ) Cash flows from financing activities: Payments of debt (50,690 ) (77,928 ) Dividends paid (4,626 ) (4,703 ) Sale of common stock 3,131 7,663 Acquisition of treasury stock (4,986 ) - Tax benefit of stock options exercised (480 ) 61 � Net cash used by financing activities (57,651 ) (74,907 ) Effect of exchange rate changes on cash 221 � 74 � � Net decrease in cash and cash equivalents (3,604 ) (50,238 ) Cash and cash equivalents at beginning of period 66,265 � 88,014 � Cash and cash equivalents at end of period 62,661 � 37,776 � � Supplemental cash flow information: Cash paid during the period for: Interest 11,661 15,270 Income taxes 3,025 6,569 Payments on capital leases and installment payment arrangements 15,376 18,579 Payments on software and data license liabilities 11,821 5,746 Other debt payments, excluding line of credit 13,493 3,603 Prepayment of debt 10,000 50,000 Noncash investing and financing activities: Acquisition of property and equipment under capital lease and installment payment arrangements 4,117 14,474 Construction and other financing 1,679 213 Software licenses and maintenance acquired under software obligation 20 8,305 Note payable issued in acquisition - 1,300 � ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) � � For the Twelve Months Ended March 31, 2008 � 2007 � Cash flows from operating activities: Net earnings (loss) (7,780 ) 67,873 Non-cash operating activities: Non-cash impact of restructuring 72,503 - Depreciation and amortization 272,792 229,566 Gain on disposal or impairment of assets, net (9 ) (1,718 ) Deferred income taxes (2,135 ) 14,369 Non-cash stock compensation expense 8,932 3,823 Changes in operating assets and liabilities: Accounts receivable 14,781 (25,515 ) Other assets 8,653 (19,101 ) Accounts payable and other liabilities (17,258 ) 3,960 Deferred revenue (50,135 ) (13,305 ) Net cash provided by operating activities 300,344 � 259,952 � Cash flows from investing activities: Disposition of operations 14,250 - Capitalized software (33,345 ) (27,443 ) Capital expenditures (21,600 ) (14,225 ) Cash collected from the sale and license of software - 10,000 Deferral of costs (64,701 ) (66,687 ) Payments received from investments 3,603 2,758 Net cash paid in acquisitions (11,235 ) (33,067 ) Net cash used by investing activities (113,028 ) (128,664 ) Cash flows from financing activities: Proceeds from debt 2,127 649,756 Payments of debt (158,699 ) (471,670 ) Dividends paid (9,476 ) (18,174 ) Sale of common stock 47,943 33,464 Acquisition of treasury stock (50,551 ) (299,301 ) Tax benefit of stock options exercised 5,513 � 4,142 � Net cash used by financing activities (163,143 ) (101,783 ) Effect of exchange rate changes on cash 712 � 566 � � Net increase in cash and cash equivalents 24,885 30,071 Cash and cash equivalents at beginning of period 37,776 � 7,705 � Cash and cash equivalents at end of period 62,661 � 37,776 � � Supplemental cash flow information: Cash paid during the period for: Interest 51,669 46,645 Income taxes 7,979 37,596 Payments on capital leases and installment payment arrangements 69,706 76,135 Payments on software and data license liabilities 31,819 26,897 Other debt payments, excluding line of credit 25,047 10,235 Prepayment of debt 30,000 50,000 Revolving credit payments 2,127 308,403 Noncash investing and financing activities: Acquisition of property and equipment under capital lease and installment payment arrangements 24,841 58,928 Disposal of asset under financing (5,304 ) - Construction and other financing 11,025 18,380 Software licenses and maintenance acquired under software obligation 513 23,571 Asset acquired under data obligation 15,306 - Note payable issued in acquisition 300 1,300 Issuance of common stock for acquisition - 3,610 � ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in thousands) � � � � � � � 06/30/06 � � 09/30/06 � � 12/31/06 � � 03/31/07 � � YTD FY2007 06/30/07 � � 09/30/07 � � 12/31/07 � � 03/31/08 � � YTD FY2008 � � � � � � � � � � � � � � � � Net cash provided by operating activities 56,350 64,409 62,659 76,534 259,952 39,132 40,644 130,094 90,474 300,344 � Plus: Payments received from investments 783 1,925 - 50 2,758 - 1,799 1,804 - 3,603 Disposition of operations - - - - - - - 14,250 - 14,250 � Less: Capitalized software (5,719 ) (6,926 ) (6,798 ) (8,000 ) (27,443 ) (8,447 ) (9,820 ) (8,507 ) (6,571 ) (33,345 ) Capital expenditures (217 ) (3,260 ) (2,518 ) (8,230 ) (14,225 ) (2,867 ) (5,291 ) (6,891 ) (6,551 ) (21,600 ) Deferral of costs (16,887 ) (16,559 ) (16,149 ) (17,092 ) (66,687 ) (14,129 ) (11,630 ) (17,460 ) (21,482 ) (64,701 ) Payments on capital leases and installment payment arrangements (18,905 ) (21,951 ) (16,700 ) (18,579 ) (76,135 ) (19,137 ) (17,651 ) (17,542 ) (15,376 ) (69,706 ) Payments on software and data license liabilities (7,847 ) (7,304 ) (6,000 ) (5,746 ) (26,897 ) (6,493 ) (7,279 ) (6,226 ) (11,821 ) (31,819 ) Other required debt payments (1,711 ) � � (1,804 ) � � (3,117 ) � � (3,603 ) � � (10,235 ) (3,526 ) � � (2,416 ) � � (5,612 ) � � (13,493 ) � � (25,047 ) � Subtotal 5,847 8,530 11,377 15,334 41,088 (15,467 ) (11,644 ) 83,910 15,180 71,979 � Plus: Tax benefit of stock options and warrants 1,079 � � � 1,765 � � � 1,237 � � � 61 � � � 4,142 � 5,624 � � � 344 � � � 25 � � � (480 ) � � 5,513 � � Subtotal 6,926 10,295 12,614 15,395 45,230 (9,843 ) (11,300 ) 83,935 14,700 77,492 � Plus: Cash collected from sale of software 5,000 � � � 5,000 � � � - � � � - � � � 10,000 � - � � � - � � � - � � � - � � � - � � Total 11,926 � � � 15,295 � � � 12,614 � � � 15,395 � � � 55,230 � (9,843 ) � � (11,300 ) � � 83,935 � � � 14,700 � � � 77,492 � � ACXIOM CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (Unaudited) (Dollars in thousands, except earnings per share) � � For the Three � For the Twelve Months ended Months ended March 31, 2008 March 31, 2008 � Loss before income taxes (88,659 ) (9,761 ) � Unusual items 107,160 � 84,222 � � Earnings before income taxes and unusual items 18,501 � 74,461 � � � Loss before income taxes (88,659 ) (9,761 ) � Income taxes (30,375 ) (1,981 ) � Net loss (58,284 ) (7,780 ) � Loss per share: � Basic (0.76 ) (0.10 ) � Diluted (0.76 ) (0.10 ) � � � Unusual items: � Transaction costs - 17,689 Transaction termination payment - (65,000 ) Payment to retired Company Leader - 3,000 Disposition of operation in France (584 ) (3,157 ) Restructuring - severance and related 13,374 19,358 Restructuring - facilities and related 22,832 22,832 Restructuring - contract accruals 6,671 6,671 Restructuring - Closing of Harbinger 9,527 9,527 Restructuring - flight services closing 3,993 3,993 Restructuring - software disposals and impairment 15,018 15,018 Other restructuring and other items 3,688 6,421 Accrued revenue adjustment (4,001 ) 1,180 IT contract restructuring 33,968 44,016 Investment loss 2,674 � 2,674 � � Total unusual items 107,160 � 84,222 � � Earnings before income taxes and excluding unusual items 18,501 74,461 � Income taxes 6,633 � 25,977 � � Non-GAAP net earnings 11,868 � 48,484 � � Non-GAAP earnings per share: � Basic 0.15 � 0.61 � � Diluted 0.15 � 0.60 �