ACXM Acxiom Holdngs (delisted)

Acxiom® Corporation (Nasdaq: ACXM) a recognized leader in marketing services and technology, today announced financial results for the third quarter of fiscal year 2011 ended December 31, 2010. Acxiom will hold a conference call at 10:00 a.m. CST today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com. The company will reference presentation slides that will be available on the website prior to the call.

John Meyer, Acxiom’s chief executive officer and president, said, “We are pleased that Acxiom delivered another solid performance in the third quarter of fiscal 2011. This represents our third consecutive quarter of year-over-year revenue and operating income growth. This quarter’s performance was driven by the continued execution against our strategy and was aided by the general improvement in client spending in our core markets.”

Third Quarter 2011 Highlights:

• Revenue increased by 5.4% in the current quarter ended December 31, 2010 to $299.1 million, compared to $283.8 million for the quarter ended December 31, 2009.
• Income from operations of $34.6 million in the current-year third quarter compared to income from operations of $29.9 million in the third quarter of the prior year. Excluding the impact of unusual items which are described below, income from operations in the current quarter would be $30.9 million, a 3.6% increase over the prior-year quarter.
• Earnings per diluted share attributable to Acxiom stockholders of $0.25 in the current quarter, compared to $0.18 in the third quarter of fiscal 2010. Excluding the impact of unusual items described below, earnings per diluted share attributable to Acxiom stockholders would be $0.19 in the current period, a 5.6% increase over the prior-year quarter.

The company recorded adjustments to restructuring and legal accruals during the quarter totaling $3.6 million recorded in gains, losses and other items, net. In addition, during the quarter, the company reduced a reserve for unrecognized tax benefits by approximately $3.5 million due to the expiration of the related statute of limitations. These two items combined increased earnings per share attributable to Acxiom shareholders by 6 cents.

• Operating cash flow of $64.2 million, compared to $74.5 million in the third quarter a year ago.
• Free cash flow available to equity of $35.1 million, compared to $49.0 million in the third 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.

Operational Highlights:

• Information Services: Revenue for the quarter ended December 31, 2010 was $232.8 million, up 6.6%, compared to $218.3 million for the quarter ended December 31, 2009. Income from operations for the current third quarter was $26.4 million, down 4.3% compared to $27.6 million in the prior-year third quarter.
• Information Products: Revenue for the quarter increased 1.3% to $66.3 million, compared with $65.5 million in the third quarter a year ago. Income from operations for the quarter was $4.5 million, compared to $2.8 million in the third quarter of the previous year.

Fiscal Year 2011 Year-To-Date Highlights:

• Revenue increased by 6.2% in the current year nine-month period, to $861.2 million, compared to $810.9 million for the same period last year.
• Income from operations of $84.0 million for the first nine months of fiscal year 2011, up 32.0%, compared to income from operations of $63.6 million in the comparable nine-month period of fiscal 2010. Excluding the impact of unusual items described above, income from operations in the current year would be $80.3 million, a 26.3% increase over the prior year.
• Earnings per diluted share attributable to Acxiom stockholders of $0.54 for the current year nine-month period, compared to $0.35 in the comparable nine-month period last year. Excluding the impact of unusual items noted above, earnings per diluted share attributable to Acxiom stockholders would be $0.47 for the current year nine-month period.
• Operating cash flow of $124.2 million in the current fiscal year nine-month period, compared to $151.4 million in the prior year nine-month period.
• Free cash flow available to equity of $38.5 million for the nine months ended December 31, 2010, compared to $65.2 million for the nine months ended December 31, 2009. 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_Q3_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing services and technology that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience in data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific, 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 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 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 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 December 31, $ % 2010 2009 Variance   Variance   Revenue: Services 232,798 218,340 14,458 6.6 % Products 66,312   65,467   845 1.3 % Total revenue 299,110 283,807 15,303 5.4 %   Operating costs and expenses: Cost of revenue Services 178,586 163,206 (15,380 ) (9.4 %) Products 48,258   46,727   (1,531 ) (3.3 %) Total cost of revenue 226,844 209,933 (16,911 ) (8.1 %)   Services gross margin 23.3 % 25.3 % Products gross margin 27.2 % 28.6 % Total gross margin 24.2 % 26.0 %   Selling, general and administrative 41,331 43,477 2,146 4.9 % Gains, losses and other items, net (3,640 ) 538   4,178 776.6 %   Total operating costs and expenses 264,535   253,948   (10,587 ) (4.2 %)   Income from operations 34,575   29,859   4,716 15.8 %   Other income (expense): Interest expense (6,006 ) (5,687 ) (319 ) (5.6 %) Other, net (299 ) 198   (497 ) (251.0 %)   Total other income (expense) (6,305 ) (5,489 ) (816 ) (14.9 %)   Earnings before income taxes 28,270 24,370 3,900 16.0 %   Income taxes 7,856   10,212   2,356 23.1 %   Net earnings 20,414 14,158 6,256 44.2 %   Less: Net loss attributable to noncontrolling interest (409 ) (104 ) (305 ) -   Net earnings attributable to Acxiom 20,823   14,262   6,561 46.0 %   Earnings per share:   Basic 0.25   0.18   0.07 38.9 %   Diluted 0.25   0.18   0.07 38.9 %   Earnings per share attributable to Acxiom stockholders:   Basic 0.26   0.18   0.08 44.4 %   Diluted 0.25   0.18   0.07 38.9 %     ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)             For the Nine Months Ended December 31, $ % 2010 2009 Variance   Variance   Revenue: Services 669,038 627,879 41,159 6.6 % Products 192,136   183,014   9,122 5.0 % Total revenue 861,174 810,893 50,281 6.2 %   Operating costs and expenses: Cost of revenue Services 518,923 488,574 (30,349 ) (6.2 %) Products 142,349   138,775   (3,574 ) (2.6 %) Total cost of revenue 661,272 627,349 (33,923 ) (5.4 %)   Services gross margin 22.4 % 22.2 % Products gross margin 25.9 % 24.2 % Total gross margin 23.2 % 22.6 %   Selling, general and administrative 119,560 119,084 (476 ) (0.4 %) Gains, losses and other items, net (3,619 ) 858   4,477 521.8 %   Total operating costs and expenses 777,213   747,291   (29,922 ) (4.0 %)   Income from operations 83,961   63,602   20,359 32.0 %   Other income (expense): Interest expense (18,164 ) (16,615 ) (1,549 ) (9.3 %) Other, net (639 ) 303   (942 ) (310.9 %)   Total other income (expense) (18,803 ) (16,312 ) (2,491 ) (15.3 %)   Earnings before income taxes 65,158 47,290 17,868 37.8 %   Income taxes 22,611   19,493   (3,118 ) (16.0 %)   Net earnings 42,547 27,797 14,750 53.1 %   Less: Net loss attributable to noncontrolling interest (1,362 ) (104 ) (1,258 ) -   Net earnings attributable to Acxiom 43,909   27,901   16,008 57.4 %   Earnings per share:   Basic 0.53   0.35   0.18 51.4 %   Diluted 0.52   0.35   0.17 48.6 %   Earnings per share attributable to Acxiom stockholders:   Basic 0.55   0.35   0.20 57.1 %   Diluted 0.54   0.35   0.19 54.3 %     ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings per share)             For the Three Months Ended   December 31, December 31, 2010 2009   Basic earnings per share:   Numerator - net earnings 20,414 14,158   Denominator - weighted-average shares outstanding 80,233 79,068   Basic earnings per share 0.25 0.18   Diluted earnings per share:   Numerator - net earnings 20,414 14,158   Denominator - weighted-average shares outstanding 80,233 79,068   Dilutive effect of common stock options, warrants and restricted stock 1,865 802   82,098 79,870   Diluted earnings per share 0.25 0.18     Basic earnings per share attributable to Acxiom stockholders:   Numerator - net earnings attributable to Acxiom 20,823 14,262   Denominator - weighted-average shares outstanding 80,233 79,068   Basic earnings per share attributable to Acxiom stockholders 0.26 0.18   Diluted earnings per share attributable to Acxiom stockholders:   Numerator - net earnings attributable to Acxiom 20,823 14,262   Denominator - weighted-average shares outstanding 80,233 79,068   Dilutive effect of common stock options, warrants, and restricted stock 1,865 802   82,098 79,870   Diluted earnings per share attributable to Acxiom stockholders 0.25 0.18     ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings per share)             For the Nine Months Ended   December 31, December 31, 2010 2009   Basic earnings per share:   Numerator - net earnings 42,547 27,797   Denominator - weighted-average shares outstanding 80,007 78,883   Basic earnings per share 0.53 0.35   Diluted earnings per share:   Numerator - net earnings 42,547 27,797   Denominator - weighted-average shares outstanding 80,007 78,883   Dilutive effect of common stock options, warrants and restricted stock 1,606 537   81,613 79,420   Diluted earnings per share 0.52 0.35     Basic earnings per share attributable to Acxiom stockholders:   Numerator - net earnings attributable to Acxiom 43,909 27,901   Denominator - weighted-average shares outstanding 80,007 78,883   Basic earnings per share attributable to Acxiom stockholders 0.55 0.35   Diluted earnings per share attributable to Acxiom stockholders:   Numerator - net earnings attributable to Acxiom 43,909 27,901   Denominator - weighted-average shares outstanding 80,007 78,883   Dilutive effect of common stock options, warrants, and restricted stock 1,606 537   81,613 79,420   Diluted earnings per share attributable to Acxiom stockholders 0.54 0.35     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Three Months Ended   December 31, December 31, Revenue: 2010 2009   Information services 232,798 218,340 Information products 66,312   65,467     Total revenue 299,110   283,807       Income from operations:   Information services 26,390 27,565 Information products 4,545 2,832 Other 3,640   (538 )   Total income from operations 34,575   29,859     Margin:   Information services 11.3 % 12.6 % Information products 6.9 % 4.3 %   Total margin 11.6 % 10.5 %     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Nine Months Ended   December 31, December 31, Revenue: 2010 2009   Information services 669,038 627,879 Information products 192,136   183,014     Total revenue 861,174   810,893       Income from operations:   Information services 70,221 63,374 Information products 10,121 1,086 Other 3,619   (858 )   Total income from operations 83,961   63,602     Margin:   Information services 10.5 % 10.1 % Information products 5.3 % 0.6 %   Total margin 9.7 % 7.8 %     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)           December 31, March 31, $ % 2010 2010 Variance   Variance

Assets

Current assets: Cash and cash equivalents 203,936 224,104 (20,168 ) (9.0 %) Trade accounts receivable, net 171,695 168,522 3,173 1.9 % Deferred income taxes 11,863 11,874 (11 ) (0.1 %) Refundable income taxes 2,071 - 2,071 100.0 % Other current assets 55,468   54,205   1,263 2.3 %   Total current assets 445,033   458,705   (13,672 ) (3.0 %)   Property and equipment 877,192 824,084 53,108 6.4 % Less - accumulated depreciation and amortization 618,490   587,245   31,245 5.3 %   Property and equipment, net 258,702   236,839   21,863 9.2 %   Software, net of accumulated amortization 31,018 38,845 (7,827 ) (20.1 %) Goodwill 488,381 470,261 18,120 3.9 % Purchased software licenses, net of accumulated amortization 43,077 51,356 (8,279 ) (16.1 %) Deferred costs, net 85,792 68,914 16,878 24.5 % Data acquisition costs 19,820 21,931 (2,111 ) (9.6 %) Other assets, net 14,429   16,569   (2,140 ) (12.9 %)   1,386,252   1,363,420   22,832 1.7 %  

Liabilities and Stockholders' Equity

Current liabilities: Current installments of long-term debt 30,764 42,106 11,342 26.9 % Trade accounts payable 43,757 42,774 (983 ) (2.3 %) Accrued payroll and related expenses 32,485 36,517 4,032 11.0 % Other accrued expenses 69,786 75,632 5,846 7.7 % Deferred revenue 66,441 55,567 (10,874 ) (19.6 %) Income taxes -   2,460   2,460 100.0 %   Total current liabilities 243,233   255,056   11,823 4.6 %   Long-term debt 414,307 458,629 44,322 9.7 %   Deferred income taxes 69,174 61,284 (7,890 ) (12.9 %)   Other liabilities 8,834 9,954 1,120 11.3 %   Stockholders' equity: Common stock 11,746 11,662 84 0.7 % Additional paid-in capital 832,065 814,929 17,136 2.1 % Retained earnings 526,152 482,243 43,909 9.1 % Accumulated other comprehensive income 9,554 4,167 5,387 129.3 % Treasury stock, at cost (738,601 ) (738,601 ) 0 0.0 % Total Acxiom stockholders' equity 640,916 574,400 66,516 11.6 % Noncontrolling interest 9,788   4,097   5,691 138.9 %   Total equity 650,704   578,497   72,207 12.5 %   1,386,252   1,363,420   22,832 1.7 %     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)     For the Three Months Ended December 31, 2010   2009   Cash flows from operating activities: Net earnings 20,414 14,158 Non-cash operating activities: Depreciation and amortization 34,880 43,170 Loss (Gain) on disposal or impairment of assets (317 ) 403 Deferred income taxes 302 14,381 Non-cash stock compensation expense 3,437 2,638 Changes in operating assets and liabilities: Accounts receivable 585 1,814 Other assets 3,561 8,452 Deferred costs (5,786 ) (12,037 ) Accounts payable and other liabilities (3,626 ) (6,109 ) Deferred revenue 10,780   7,639   Net cash provided by operating activities 64,230   74,509   Cash flows from investing activities: Sale of assets - 1,058 Capitalized software (1,025 ) (1,846 ) Capital expenditures (16,322 ) (9,479 ) Data acquisition costs (3,765 ) (5,450 ) Payments for investments - (1,000 ) Net cash paid in acquisitions -   (3,785 ) Net cash used by investing activities (21,112 ) (20,502 ) Cash flows from financing activities: Payments of debt (41,522 ) (17,316 ) Fees for debt refinancing - (4,563 ) Sale of common stock 2,503 351 Proceeds from partner's contributions 347   457   Net cash used by financing activities (38,672 ) (21,071 ) Effect of exchange rate changes on cash 106   12     Net change in cash and cash equivalents 4,552 32,948 Cash and cash equivalents at beginning of period 199,384   167,634   Cash and cash equivalents at end of period 203,936   200,582     Supplemental cash flow information: Cash paid (received) during the period for: Interest 6,052 6,221 Income taxes 1,913 (4,190 ) Payments on capital leases and installment payment arrangements 5,726 7,309 Payments on software and data license liabilities 120 416 Other debt payments, excluding line of credit 2,143 2,091 Prepayment of debt 33,533 7,500 Noncash investing and financing activities:

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

4,779 7,860     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)     For the Nine Months Ended December 31, 2010   2009   Cash flows from operating activities: Net earnings 42,547 27,797 Non-cash operating activities: Depreciation and amortization 108,586 124,912 Loss (gain) on disposal or impairment of assets (272 ) 410 Deferred income taxes 4,245 23,100 Non-cash stock compensation expense 9,897 8,288 Changes in operating assets and liabilities: Accounts receivable (7,913 ) 5 Other assets (4,590 ) 11,913 Deferred costs (28,407 ) (15,381 ) Accounts payable and other liabilities (11,653 ) (31,214 ) Deferred revenue 11,744   1,548   Net cash provided by operating activities 124,184   151,378   Cash flows from investing activities: Sale of assets - 1,058 Capitalized software (3,592 ) (6,661 ) Capital expenditures (46,808 ) (31,372 ) Data acquisition costs (10,716 ) (14,231 ) Payments from (for) investments 175 (1,000 ) Net cash paid in acquisitions (12,927 ) (3,428 ) Net cash used by investing activities (73,868 ) (55,634 ) Cash flows from financing activities: Payments of debt (78,089 ) (72,442 ) Fees for debt refinancing - (4,563 ) Sale of common stock 7,323 3,014 Acquisition of treasury stock - (307 ) Proceeds from partner's contributions 480   457   Net cash used by financing activities (70,286 ) (73,841 ) Effect of exchange rate changes on cash (198 ) 1,513     Net change in cash and cash equivalents (20,168 ) 23,416 Cash and cash equivalents at beginning of period 224,104   177,166   Cash and cash equivalents at end of period 203,936   200,582     Supplemental cash flow information: Cash paid (received) during the period for: Interest 17,728 16,807 Income taxes 22,995 (8,450 ) Payments on capital leases and installment payment arrangements 17,105 22,607 Payments on software and data license liabilities 1,177 6,134 Other debt payments, excluding line of credit 6,274 6,201 Prepayment of debt 53,533 37,500 Noncash investing and financing activities:

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

22,429 18,247 Software licenses and maintenance acquired under software obligation - 611     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   FY2011   Net cash provided by operating activities 16,166 60,703 74,509 87,904 239,282 16,988 42,966 64,230 124,184   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 ) (3,592 ) Capital expenditures (7,431 ) (14,462 ) (9,479 ) (26,536 ) (57,908 ) (8,752 ) (21,734 ) (16,322 ) (46,808 ) Data acquisition costs (5,777 ) (3,004 ) (5,450 ) (4,577 ) (18,808 ) (4,326 ) (2,625 ) (3,765 ) (10,716 ) Payments on capital leases and installment payment arrangements (7,794 ) (7,504 ) (7,309 ) (7,090 ) (29,697 ) (5,968 ) (5,411 ) (5,726 ) (17,105 ) Payments on software and data license liabilities (3,878 ) (1,840 ) (416 ) (1,392 ) (7,526 ) (893 ) (164 ) (120 ) (1,177 ) Other required debt payments (2,052 )   (2,058 )   (2,091 )   (3,597 )   (9,798 ) (2,103 )   (2,028 )   (2,143 )   (6,274 )   Total (13,150 )   29,404     48,976     43,116     108,346   (6,280 )   9,663     35,129     38,512       ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)                                                             Q3 FY10 to Q3 FY11 06/30/09   09/30/09   12/31/09   03/31/10   FY2010 06/30/10   09/30/10   12/31/10   FY2011 %   $ Revenue: Services 199,326 210,213 218,340 221,553 849,432 210,656 225,584 232,798 669,038 6.6 % 14,458 Products 56,655     60,892     65,467     66,789     249,803   59,739     66,085     66,312     192,136   1.3 %   845   Total revenue 255,981 271,105 283,807 288,342 1,099,235 270,395 291,669 299,110 861,174 5.4 % 15,303   Operating costs and expenses: Cost of revenue Services 159,576 165,792 163,206 166,085 654,659 164,650 175,687 178,586 518,923 -9.4 % (15,380 ) Products 45,919     46,129     46,727     45,835     184,610   45,771     48,320     48,258     142,349   -3.3 %   (1,531 ) Total cost of revenue 205,495 211,921 209,933 211,920 839,269 210,421 224,007 226,844 661,272 -8.1 % (16,911 )     Selling, general and administrative 37,643 37,964 43,477 43,013 162,097 37,955 40,274 41,331 119,560 4.9 % 2,146 Gains, losses and other items, net 347     (27 )   538     (1,802 )   (944 ) (57 )   78     (3,640 )   (3,619 ) 776.6 %   4,178     Total operating costs and expenses 243,485 249,858 253,948 253,131 1,000,422 248,319 264,359 264,535 777,213 -4.2 % (10,587 )   Income from operations 12,496 21,247 29,859 35,211 98,813 22,076 27,310 34,575 83,961 15.8 % 4,716 % Margin 4.9 % 7.8 % 10.5 % 12.2 % 9.0 % 8.2 % 9.4 % 11.6 % 9.7 % Other income (expense) Interest expense (5,505 ) (5,423 ) (5,687 ) (5,865 ) (22,480 ) (5,898 ) (6,260 ) (6,006 ) (18,164 ) 5.6 % (319 ) Other, net (118 )   223     198     122     425   (451 )   111     (299 )   (639 ) -251.0 %   (497 ) Total other income (expense) (5,623 ) (5,200 ) (5,489 ) (5,743 ) (22,055 ) (6,349 ) (6,149 ) (6,305 ) (18,803 ) 14.9 % (816 )   Earnings before income taxes 6,873 16,047 24,370 29,468 76,758 15,727 21,161 28,270 65,158 16.0 % 3,900 Income taxes 2,679     6,602     10,212     13,106     32,599   6,291     8,464     7,856     22,611   23.1 %   2,356     Net earnings 4,194 9,445 14,158 16,362 44,159 9,436 12,697 20,414 42,547 44.2 % 6,256  

Less: Net loss attributable to noncontrolling interest

-     -     (104 )   (286 )   (390 ) (369 )   (584 )   (409 )   (1,362 ) 293.3 %   (305 )   Net earnings attributable to Acxiom 4,194     9,445     14,262     16,648     44,549   9,805     13,281     20,823     43,909   46.0 %   6,561      

Diluted earnings per share attributable to Acxiom shareholders

0.05     0.12     0.18     0.21     0.56   0.12     0.16     0.25     0.54   38.9 %   0.07       ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)                                                             Q3 FY10 to Q3 FY11 06/30/09   09/30/09   12/31/09   03/31/10   FY2010 06/30/10   09/30/10   12/31/10   FY2011 %   $ Revenue:   Services 199,326 210,213 218,340 221,553 849,432 210,656 225,584 232,798 669,038 6.6 % 14,458 Products 56,655     60,892     65,467     66,789     249,803   59,739     66,085     66,312     192,136   1.3 %   845     Total revenue 255,981     271,105     283,807     288,342     1,099,235   270,395     291,669     299,110     861,174   5.4 %   15,303     Income from operations:   Services 15,838 19,971 27,565 27,639 91,013 20,879 22,952 26,390 70,221 -4.3 % (1,175 ) Products (2,995 ) 1,249 2,832 5,770 6,856 1,140 4,436 4,545 10,121 60.5 % 1,713 Other (347 )   27     (538 )   1,802     944   57     (78 )   3,640     3,619   -776.6 %   4,178     Total income from operations 12,496     21,247     29,859     35,211     98,813   22,076     27,310     34,575     83,961   15.8 %   4,716     Margin:   Services 7.9 % 9.5 % 12.6 % 12.5 % 10.7 % 9.9 % 10.2 % 11.3 % 10.5 % Products -5.3 % 2.1 % 4.3 % 8.6 % 2.7 % 1.9 % 6.7 % 6.9 % 5.3 %   Total 4.9 % 7.8 % 10.5 % 12.2 % 9.0 % 8.2 % 9.4 % 11.6 % 9.7 %  

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