ACXM Acxiom Holdngs (delisted)

Acxiom® Corporation (Nasdaq: ACXM), a global leader in interactive marketing, today announced financial results for the fourth quarter and fiscal year ended March 31, 2010. 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.

John Meyer, Acxiom’s chief executive officer and president, said, “Our performance in the fourth quarter demonstrates that we continue to manage the business effectively in this economic environment. We experienced our third consecutive quarterly increase in revenue, operating income and operating cash flow. These results stem from the superb job Acxiom professionals do serving our clients and bringing value, while remaining focused on efficiency in our execution.”

Meyer continued, “We had a strong finish to our fiscal 2010. Our operating income in the second half of the fiscal year was a significant improvement over the first half and better reflected our traditional seasonal pattern. While we anticipate improvement in the economic outlook, we also expect a continued return to our seasonal revenue and operating income patterns, where the first quarter is less than the fourth quarter.”

Fourth Quarter 2010 Highlights:

• Revenue of $288.3 million in the current quarter, compared to $288.1 million, excluding an Information Products pass-through contract (approximately $7.4 million), in the fourth quarter a year ago. GAAP revenue, including the pass-through revenue in the prior-year quarter, was $295.5 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.
• Income from operations of $35.2 million in the current-year fourth quarter, compared to income from operations of $41.6 million in the fourth quarter last year. Income from operations included unusual gain items of $1.8 million in the current year and $1.7 million in the prior year.
• Earnings per diluted share of $0.21 in the fourth quarter of fiscal 2010, compared to earnings per diluted share of $0.29 in the fourth quarter of fiscal 2009. The results included $0.02 and $0.04 in unusual items in the current and prior periods, respectively. Excluding the effect of the unusual items, diluted earnings per share would have been $0.19 in the current year and $0.25 in the prior-year period.
• Operating cash flow of $87.9 million compared to $74.7 million in the fourth quarter a year ago.
• Free cash flow available to equity of $43.1 million, compared to $38.4 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.

Fiscal Year 2010 Highlights:

• Revenue of $1.099 billion in fiscal 2010, compared to $1.205 billion, excluding an Information Products pass-through contract (approximately $71.3 million), in the prior year. GAAP revenue, including the pass-through revenue, in the prior year was $1.277 billion. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.
• Income from operations of $98.8 million in fiscal year 2010, compared to income from operations of $92.9 million last year. The prior-year income from operations included $38.6 million in unusual loss items. Before the effect of the unusual loss items, income from operations for the prior year would have been $131.4 million.
• Earnings per diluted share of $0.56 for the current year compared to earnings per diluted share of $0.48 in fiscal 2009. The prior-year results included $0.28 in unusual loss items. Excluding the effect of the unusual items, diluted earnings per share in the prior year were $0.76.
• Operating cash flow of $239.3 million for the fiscal year, compared to $268.8 million a year ago.
• Free cash flow available to equity of $108.3 million for the fiscal year, compared to $147.1 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 news release.

Operational Highlights:

• Information Services: Revenue for the quarter was $221.6 million, compared to $218.9 million in the fourth quarter of the previous year. For the 12 months ended March 31, 2010, revenue was $849.4 million, compared to $920.3 million in the previous year. Income from operations for the quarter was $27.6 million, compared to $32.9 million in the fourth quarter of fiscal 2009. For the 12 months just ended, income from operations was $91.0 million, compared to $117.4 million in the previous 12-month period.
• Information Products: Revenue for the quarter was $66.8 million, compared with $69.2 million, excluding the pass-through revenue of approximately $7.4 million from the Information Products contract referenced above, in the fourth quarter a year ago. GAAP revenue, including the pass-through revenue, in the prior quarter was $76.6 million. For the 12 months ended March 31, 2010, revenue was $249.8, compared to $285.0 million, excluding the pass-through revenue of approximately $71.3 million from the Information Products contract referenced above. GAAP revenue, including the pass-through revenue, in the prior year was $356.3 million. Income from operations for the quarter was $5.8 million, compared to income from operations of $7.0 million in the fourth quarter of the previous year. For the 12 months just ended, income from operations was $6.9 million, compared to $14.0 million in the previous 12-month period.

Income from operations includes expenses that had previously been included in corporate and other expenses. The company now allocates selling, general and administrative expenses previously included in corporate and other expenses to the two operating segments, Information Services and Information Products. Prior-year results have been reclassified to reflect the change.

Investor Day

Acxiom will host an investor day on June 2 where company management will discuss operations and prospects. The event will be held at the Hyatt Regency Boston and will be web cast. Further information will be made available on our website at www.acxiom.com.

Web Link to Financials

You may link to http://www.acxiom.com/FY10_Q4_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing technology and services 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 of 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 the Middle East. For more information about Acxiom, visit Acxiom.com.

Forward Looking Statements

This release and today’s conference call may contain forward-looking statements including, without limitation, statements regarding an improvement in the economic outlook, and a continued return to our historical seasonal revenue and operating income patterns. 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 we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates to other organizations; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may change; the possibility that we will not be able to achieve cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; and other risks and uncertainties, 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 report 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, 2009, which was filed with the Securities and Exchange Commission on May 29, 2009.

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, $ % 2010 2009 Variance   Variance   Revenue: Services 221,553 218,885 2,668 1.2 % Products 66,789   76,624   (9,835 ) (12.8 %) Total revenue 288,342 295,509 (7,167 ) (2.4 %)   Operating costs and expenses: Cost of revenue Services 166,085 161,060 (5,025 ) (3.1 %) Products 45,835   55,604   9,769 17.6 % Total cost of revenue 211,920 216,664 4,744 2.2 %   Services gross margin 25.0 % 26.4 % Products gross margin 31.4 % 27.4 % Total gross margin 26.5 % 26.7 %   Selling, general and administrative 43,013 38,930 (4,083 ) (10.5 %) Gains, losses and other items, net (1,802 ) (1,694 ) 108 6.4 %   Total operating costs and expenses 253,131   253,900   769 0.3 %   Income from operations 35,211   41,609   (6,398 ) (15.4 %)   Other income (expense): Interest expense (5,865 ) (6,441 ) 576 8.9 % Other, net 122   163   (41 ) (25.2 %)   Total other income (expense) (5,743 ) (6,278 ) 535 8.5 %   Earnings (loss) before income taxes 29,468 35,331 (5,863 ) (16.6 %)   Income taxes 13,106   12,881   (225 ) (1.7 %)   Net earnings (loss) 16,362 22,450 (6,088 ) (27.1 %)   Less: Net earnings (loss) attributable to noncontrolling interest (286 ) -   (286 ) -   Net earnings (loss) attributable to Acxiom 16,648   22,450   (5,802 ) (25.8 %)   Earnings (loss) per share:   Basic 0.21   0.29   (0.08 ) (27.6 %)   Diluted 0.20   0.29   (0.09 ) (31.0 %)   Earnings (loss) per share attributable to Acxiom stockholders:   Basic 0.21   0.29   (0.08 ) (27.6 %)   Diluted 0.21   0.29   (0.08 ) (27.6 %)             ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)         For the Twelve Months Ended March 31, $ % 2010 2009 Variance   Variance   Revenue: Services 849,432 920,262 (70,830 ) (7.7 %) Products 249,803   356,311   (106,508 ) (29.9 %) Total revenue 1,099,235 1,276,573 (177,338 ) (13.9 %)   Operating costs and expenses: Cost of revenue Services 654,659 694,340 39,681 5.7 % Products 184,610   280,846   96,236 34.3 % Total cost of revenue 839,269 975,186 135,917 13.9 %   Services gross margin 22.9 % 24.5 % Products gross margin 26.1 % 21.2 % Total gross margin 23.6 % 23.6 %   Selling, general and administrative 162,097 169,960 7,863 4.6 % Gains, losses and other items, net (944 ) 38,566   39,510 102.4 %   Total operating costs and expenses 1,000,422   1,183,712   183,290 15.5 %   Income from operations 98,813   92,861   5,952 6.4 %   Other income (expense): Interest expense (22,480 ) (32,596 ) 10,116 31.0 % Other, net 425   1,949   (1,524 ) (78.2 %)   Total other income (expense) (22,055 ) (30,647 ) 8,592 28.0 %   Earnings before income taxes 76,758 62,214 14,544 23.4 %   Income taxes 32,599   24,710   (7,889 ) (31.9 %)   Net earnings 44,159 37,504 6,655 17.7 %   Less: Net earnings attributable to noncontrolling interest (390 ) -   (390 ) -   Net earnings attributable to Acxiom 44,549   37,504   7,045 18.8 %   Earnings per share:   Basic 0.56   0.48   0.08 16.7 %   Diluted 0.55   0.48   0.07 14.6 %  

Earnings per share attributable to Acxiom stockholders:

  Basic 0.56   0.48   0.08 16.7 %   Diluted 0.56   0.48   0.08 16.7 %             ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings per share)           For the Three Months Ended   March 31, March 31, 2010 2009   Basic earnings per share:   Numerator - net earnings (loss) 16,362 22,450   Denominator - weighted-average shares outstanding 79,245 78,362   Basic earnings (loss) per share 0.21 0.29   Diluted earnings per share:   Numerator - net earnings (loss) 16,362 22,450   Denominator - weighted-average shares outstanding 79,245 78,362   Dilutive effect of common stock options, warrants and restricted stock 1,395 297   80,640 78,659   Diluted earnings (loss) per share 0.20 0.29           Basic earnings per share attributable to Acxiom stockholders:   Numerator - net earnings (loss) attributable to Acxiom 16,648 22,450   Denominator - weighted-average shares outstanding 79,245 78,362   Basic earnings (loss) per share attributable to Acxiom stockholders 0.21 0.29   Diluted earnings per share attributable to Acxiom stockholders:   Numerator - net earnings (loss) attributable to Acxiom 16,648 22,450   Denominator - weighted-average shares outstanding 79,245 78,362   Dilutive effect of common stock options, warrants and restricted stock 1,395 297   80,640 78,659   Diluted earnings (loss) per share attributable to Acxiom stockholders 0.21 0.29             ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings per share)           For the Twelve Months Ended   March 31, March 31, 2010 2009   Basic earnings per share:   Numerator - net earnings 44,159 37,504   Denominator - weighted-average shares outstanding 78,974 77,892   Basic earnings per share 0.56 0.48   Diluted earnings per share:   Numerator - net earnings 44,159 37,504   Denominator - weighted-average shares outstanding 78,974 77,892   Dilutive effect of common stock options, warrants and restricted stock 751 333   79,725 78,225   Diluted earnings per share 0.55 0.48           Basic earnings per share attributable to Acxiom stockholders:   Numerator - net earnings attributable to Acxiom 44,549 37,504   Denominator - weighted-average shares outstanding 78,974 77,892   Basic earnings per share attributable to Acxiom stockholders 0.56 0.48   Diluted earnings per share attributable to Acxiom stockholders:   Numerator - net earnings attributable to Acxiom 44,549 37,504   Denominator - weighted-average shares outstanding 78,974 77,892   Dilutive effect of common stock options, warrants and restricted stock 751 333   79,725 78,225   Diluted earnings per share attributable to Acxiom stockholders 0.56 0.48             ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Three Months Ended   March 31, March 31, Revenue: 2010 2009   Information services 221,553 218,885 Information products 66,789   76,624     Total revenue 288,342   295,509       Income from operations:   Information services 27,639 32,873 Information products 5,770 7,042 Other 1,802   1,694     Total income from operations 35,211   41,609     Margin:   Information services 12.5 % 15.0 % Information products 8.6 % 9.2 %   Total margin 12.2 % 14.1 %             ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Twelve Months Ended   March 31, March 31, Revenue: 2010 2009   Information services 849,432 920,262 Information products 249,803   356,311     Total revenue 1,099,235   1,276,573       Income from operations:   Information services 91,013 117,397 Information products 6,856 14,030 Other 944   (38,566 )   Total income from operations 98,813   92,861     Margin:   Information services 10.7 % 12.8 % Information products 2.7 % 3.9 %   Total margin 9.0 % 7.3 %             ACXIOM CORPORATION AND SUBSIDIARIES PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE (Unaudited) (Dollars in thousands)           For the Three Months Ended   March 31, March 31, $ % 2010 2009 Variance   Variance   Products 66,789 69,167 (2,378 ) (3.4 %) Passthrough data -   7,457   (7,457 ) (100.0 %)   Total products revenue 66,789   76,624   (9,835 ) (12.8 %)     Cost of products revenue: Products 45,835 48,147 2,312 4.8 % Passthrough data -   7,457   7,457 100.0 %   Total cost of products 45,835   55,604   9,769 17.6 %   Margin:   Products 31.4 % 30.4 % Passthrough data - 0.0 % Total products 31.4 % 27.4 %             ACXIOM CORPORATION AND SUBSIDIARIES PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE (Unaudited) (Dollars in thousands)           For the Twelve Months Ended   March 31, March 31, $ % 2010 2009 Variance   Variance   Products 249,803 285,005 (35,202 ) (12.4 %) Passthrough data -   71,306   (71,306 ) (100.0 %)   Total products revenue 249,803   356,311   (106,508 ) (29.9 %)     Cost of products revenue: Products 184,610 209,540 24,930 11.9 % Passthrough data -   71,306   71,306 100.0 %   Total cost of products 184,610   280,846   96,236 34.3 %   Margin:   Products 26.1 % 26.5 % Passthrough data - 0.0 % Total products 26.1 % 21.2 %             ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)         March 31, March 31, $ % 2010 2009 Variance   Variance Assets Current assets: Cash and cash equivalents 224,104 177,166 46,938 26.5 % Trade accounts receivable, net 168,522 184,814 (16,292 ) (8.8 %) Refundable income taxes - 4,028 (4,028 ) (100.0 %) Deferred income taxes 11,874 45,641 (33,767 ) (74.0 %) Other current assets 54,205   46,873   7,332 15.6 %   Total current assets 458,705   458,522   183 0.0 %   Property and equipment 824,084 745,999 78,085 10.5 % Less - accumulated depreciation and amortization 587,245   531,410   55,835 10.5 %   Property and equipment, net 236,839   214,589   22,250 10.4 %   Software, net of accumulated amortization 38,845 52,798 (13,953 ) (26.4 %) Goodwill 470,261 454,944 15,317 3.4 % Purchased software licenses, net of accumulated amortization 51,356 65,341 (13,985 ) (21.4 %) Deferred costs, net 68,914 70,343 (1,429 ) (2.0 %) Data acquisition costs 21,931 31,317 (9,386 ) (30.0 %) Other assets, net 16,569   18,938   (2,369 ) (12.5 %)   1,363,420   1,366,792   (3,372 ) (0.2 %)   Liabilities and Stockholders' Equity Current liabilities: Current installments of long-term debt 42,106 40,967 1,139 2.8 % Trade accounts payable 42,774 27,701 15,073 54.4 % Accrued payroll and related expenses 36,517 44,823 (8,306 ) (18.5 %) Other accrued expenses 75,632 86,072 (10,440 ) (12.1 %) Deferred revenue 55,567 54,991 576 1.0 % Income taxes 2,460   -   2,460 -   Total current liabilities 255,056   254,554   502 0.2 %   Long-term debt 458,629 537,272 (78,643 ) (14.6 %)   Deferred income taxes 61,284 62,231 (947 ) (1.5 %)   Other liabilities 9,954 9,321 633 6.8 %   Stockholders' equity: Common stock 11,662 11,576 86 0.7 % Additional paid-in capital 814,929 800,094 14,835 1.9 % Retained earnings 482,243 437,694 44,549 10.2 % Accumulated other comprehensive income 4,167 (6,238 ) 10,405 (166.8 %) Treasury stock, at cost (738,601 ) (739,712 ) 1,111 (0.2 %) Total Acxiom stockholders' equity 574,400 503,414 70,986 (2 ) Noncontrolling interest 4,097   -   4,097 -   Total equity 578,497   503,414   75,083 14.9 %   1,363,420   1,366,792   (3,372 ) (0.2 %)             ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)     For the Three Months Ended  

March 31,

2010   2009   Cash flows from operating activities: Net earnings 16,362 22,450 Non-cash operating activities: Depreciation and amortization 42,652 44,387 Loss on disposal or impairment of assets, net 7 4 Deferred income taxes 9,710 11,354 Non-cash stock compensation expense 2,502 2,302 Changes in operating assets and liabilities: Accounts receivable 10,290 25,477 Other assets (9,742 ) (1,528 ) Deferred costs (4,908 ) (1,757 ) Accounts payable and other liabilities 22,999 (25,784 ) Deferred revenue (1,968 ) (2,253 ) Net cash provided by operating activities 87,904   74,652   Cash flows from investing activities: Sale of assets - - Capitalized software (1,596 ) (3,238 ) Capital expenditures (26,536 ) (12,266 ) Data acquisition costs (4,577 ) (7,607 ) Payment for investments (1,000 ) 3 Net cash paid in acquisitions -   (500 ) Net cash used by investing activities (33,709 ) (23,608 ) Cash flows from financing activities: Payments of debt (32,079 ) (13,076 ) Fees for debt refinancing - - Sale of common stock 2,911 2,502 Tax impact of stock options exercised (683 ) (81 ) Acquisition of treasury stock - (1,101 ) Noncontrolling interests equity contributions -   -   Net cash used by financing activities (29,851 ) (11,756 ) Effect of exchange rate changes on cash (822 ) (197 )   Net increase in cash and cash equivalents 23,522 39,091 Cash and cash equivalents at beginning of period 200,582   138,075   Cash and cash equivalents at end of period 224,104   177,166     Supplemental cash flow information: Cash paid (received) during the period for: Interest 4,530 8,670 Income taxes 901 (160 ) Payments on capital leases and installment payment arrangements 7,090 7,673 Payments on software and data license liabilities 1,392 3,330 Other debt payments, excluding line of credit 3,597 2,073 Prepayment of debt 20,000 - Noncash investing and financing activities:

Acquisition of property and equipment under capital lease and installment payment arrangements

5,946 3,148 Software licenses and maintenance acquired under software obligation 1,560 8,409               ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)   For the Twelve Months Ended  

March 31,

2010   2009   Cash flows from operating activities: Net earnings 44,159 37,504 Non-cash operating activities: Depreciation and amortization 167,564 198,684 Loss on disposal or impairment of assets, net 417 22,658 Deferred income taxes 32,810 16,423 Non-cash stock compensation expense 10,790 10,342 Changes in operating assets and liabilities: Accounts receivable 10,295 16,100 Other assets 2,171 12,347 Deferred costs (20,289 ) (4,743 ) Accounts payable and other liabilities (8,215 ) (32,006 ) Deferred revenue (420 ) (8,468 ) Net cash provided by operating activities 239,282   268,841   Cash flows from investing activities: Sale of assets 1,058 24,174 Capitalized software (8,257 ) (16,239 ) Capital expenditures (57,908 ) (31,449 ) Cash collected from sale and license of software - 2,000 Data acquisition costs (18,808 ) (30,561 ) Payment from (for) investments (2,000 ) 2,599 Net cash paid in acquisitions (3,428 ) (15,903 ) Net cash used by investing activities (89,343 ) (65,379 ) Cash flows from financing activities: Payments of debt (104,521 ) (86,772 ) Fees for debt refinancing (4,564 ) - Dividends paid - (9,312 ) Sale of common stock 5,926 10,866 Tax impact of stock options exercised (683 ) 34 Acquisition of treasury stock (307 ) (1,756 ) Noncontrolling interests equity contributions 457   -   Net cash used by financing activities (103,692 ) (86,940 ) Effect of exchange rate changes on cash 691   (2,017 )   Net increase in cash and cash equivalents 46,938 114,505 Cash and cash equivalents at beginning of period 177,166   62,661   Cash and cash equivalents at end of period 224,104   177,166     Supplemental cash flow information: Cash paid (received) during the period for: Interest 21,337 33,138 Income taxes (7,549 ) (3,189 ) Payments on capital leases and installment payment arrangements 29,697 40,789 Payments on software and data license liabilities 7,526 23,217 Other debt payments, excluding line of credit 9,798 8,266 Prepayment of debt 57,500 14,500 Noncash investing and financing activities:

Acquisition of property and equipment under capital lease and installment payment arrangements

24,193 11,040 Software licenses and maintenance acquired under software obligation 2,171 9,955             ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in thousands)                                                                                               06/30/08     09/30/08     12/31/08     03/31/09     FY2009 06/30/09     09/30/09     12/31/09     03/31/10     FY2010   Net cash provided by operating activities 28,473 86,803 78,913 74,652 268,841 16,166 60,703 74,509 87,904 239,282   Plus: Sale of assets - 24,174 - - 24,174 - - 1,058 - 1,058 Payments received from investments 2,494 102 - 3 2,599 - - - - -   Less: Capitalized software (5,011 ) (4,118 ) (3,872 ) (3,238 ) (16,239 ) (2,384 ) (2,431 ) (1,846 ) (1,596 ) (8,257 ) Capital expenditures (5,706 ) (7,245 ) (6,232 ) (12,266 ) (31,449 ) (7,431 ) (14,462 ) (9,479 ) (26,536 ) (57,908 ) Data acquisition costs (8,622 ) (6,507 ) (7,825 ) (7,607 ) (30,561 ) (5,777 ) (3,004 ) (5,450 ) (4,577 ) (18,808 ) Payments on capital leases and installment payment arrangements (12,879 ) (11,204 ) (9,033 ) (7,673 ) (40,789 ) (7,794 ) (7,504 ) (7,309 ) (7,090 ) (29,697 ) Payments on software and data license liabilities (8,368 ) (8,420 ) (3,099 ) (3,330 ) (23,217 ) (3,878 ) (1,840 ) (416 ) (1,392 ) (7,526 ) Other required debt payments (2,057 )     (2,073 )     (2,061 )     (2,073 )     (8,264 ) (2,052 )     (2,058 )     (2,091 )     (3,597 )     (9,798 )   Subtotal (11,676 ) 71,512 46,791 38,468 145,095 (13,150 ) 29,404 48,976 43,116 108,346   Plus: Tax benefit of stock options and warrants 60       55       -       (81 )     34   -       -       -             -     Subtotal (11,616 ) 71,567 46,791 38,387 145,129 (13,150 ) 29,404 48,976 43,116 108,346   Plus: Cash collected from sale of software 2,000       -       -       -       2,000   -       -       -             -     Total (9,616 )     71,567       46,791       38,387       147,129   (13,150 )     29,404       48,976       43,116       108,346               ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)                                                                                                 Q4 FY09 to Q4 FY10 06/30/08     09/30/08     12/31/08     03/31/09   FY2009 06/30/09     09/30/09     12/31/09     03/31/10     FY2010 %     $ Revenue: Services 236,695 233,605 231,077 218,885 920,262 199,326 210,213 218,340 221,553 849,432 1.2 % 2,668 Products 94,378       95,330       89,979       76,624     356,311   56,655       60,892       65,467       66,789       249,803   -12.8 %     (9,835 ) Total revenue 331,073 328,935 321,056 295,509 1,276,573 255,981 271,105 283,807 288,342 1,099,235 -2.4 % (7,167 )   Operating costs and expenses: Cost of revenue Services 178,861 180,986 173,433 161,060 694,340 159,576 165,792 163,206 166,085 654,659 -3.1 % (5,025 ) Products 77,717       77,038       70,487       55,604     280,846   45,919       46,129       46,727       45,835       184,610   17.6 %     9,769   Total cost of revenue 256,578 258,024 243,920 216,664 975,186 205,495 211,921 209,933 211,920 839,269 2.2 % 4,744     Selling, general and administrative 49,482 38,988 42,560 38,930 169,960 37,643 37,964 43,477 43,013 162,097 -10.5 % (4,083 ) Gains, losses and other items, net (545 )     (2,370 )     43,175       (1,694 )   38,566   347       (27 )     538       (1,802 )     (944 ) 6.4 %     (108 )   Total operating costs and expenses 305,515 294,642 329,655 253,900 1,183,712 243,485 249,858 253,948 253,131 1,000,422 0.3 % 769   Income (loss) from operations 25,558 34,293 (8,599 ) 41,609 92,861 12,496 21,247 29,859 35,211 98,813 -15.4 % (6,398 ) % Margin 7.7 % 10.4 % -2.7 % 14.1 % 7.3 % 4.9 % 7.8 % 10.5 % 12.2 % 9.0 % Other income (expense) Interest expense (9,459 ) (8,591 ) (8,105 ) (6,441 ) (32,596 ) (5,505 ) (5,423 ) (5,687 ) (5,865 ) (22,480 ) 8.9 % 576 Other, net 1,359       287       140       163     1,949   (118 )     223       198       122       425   -25.2 %     (41 ) Total other income (expense) (8,100 ) (8,304 ) (7,965 ) (6,278 ) (30,647 ) (5,623 ) (5,200 ) (5,489 ) (5,743 ) (22,055 ) 8.5 % (535 )   Earnings (loss) before income taxes 17,458 25,989 (16,564 ) 35,331 62,214 6,873 16,047 24,370 29,468 76,758 -16.6 % (5,863 ) Income taxes 6,808       10,136       (5,115 )     12,881     24,710   2,679       6,602       10,212       13,106       32,599   -1.7 %     (225 )   Net earnings (loss) 10,650 15,853 (11,449 ) 22,450 37,504 4,194 9,445 14,158 16,362 44,159 -27.1 % (6,088 )  

Less: Net earnings (loss) attributable to noncontrolling interest

-       -       -       -     -   -       -       (104 )     (286 )     (390 ) 0.0 %     (286 )   Net earnings (loss) attributable to Acxiom 10,650       15,853       (11,449 )     22,450     37,504   4,194       9,445       14,262       16,648       44,549   -25.8 %     (5,802 )    

Diluted earnings (loss) per share attributable to Acxiom shareholders

0.14       0.20       (0.15 )     0.29     0.48   0.05       0.12       0.18       0.21       0.56   -27.6 %     (0.08 )             ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)                                                                                                       Q4 FY09 to Q4 FY10 06/30/08     09/30/08     12/31/08     03/31/09     FY2009 06/30/09     09/30/09     12/31/09     03/31/10     FY2010 %     $ Revenue:   Services 236,695 233,605 231,077 218,885 920,262 199,326 210,213 218,340 221,553 849,432 1.2 % 2,668 Products 94,378       95,330       89,979       76,624       356,311   56,655       60,892       65,467       66,789       249,803   -12.8 %     (9,835 )   Total revenue 331,073       328,935       321,056       295,509       1,276,573   255,981       271,105       283,807       288,342       1,099,235   -2.4 %     (7,167 )   Income from operations:   Services 25,639 28,527 30,358 32,873 117,397 15,838 19,971 27,565 27,639 91,013 -15.9 % (5,234 ) Products (626 ) 3,396 4,218 7,042 14,030 (2,995 ) 1,249 2,832 5,770 6,856 -18.1 % (1,272 ) Other 545       2,370       (43,175 )     1,694       (38,566 ) (347 )     27       (538 )     1,802       944   6.4 %     108     Total income (loss) from operations 25,558       34,293       (8,599 )     41,609       92,861   12,496       21,247       29,859       35,211       98,813   -15.4 %     (6,398 )   Margin:   Services 10.8 % 12.2 % 13.1 % 15.0 % 12.8 % 7.9 % 9.5 % 12.6 % 12.5 % 10.7 % Products -0.7 % 3.6 % 4.7 % 9.2 % 3.9 % -5.3 % 2.1 % 4.3 % 8.6 % 2.7 %   Total 7.7 % 10.4 % -2.7 % 14.1 % 7.3 % 4.9 % 7.8 % 10.5 % 12.2 % 9.0 %      

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