ACXM Acxiom Holdngs (delisted)

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 %

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