Acxiom® Corporation (Nasdaq: ACXM) today announced that John A.
Meyer notified the company of his resignation from his positions as
the Chief Executive Officer and President of the company, and as a
member of its Board of Directors, effective March 28, 2011.
Michael J. Durham, Acxiom’s chairman, said, “We’ve accomplished
a great deal under John’s leadership, and we are very grateful for
his contributions to Acxiom during a critical time in the company’s
history. Through his efforts the company has stabilized its
profitability and significantly improved its balance sheet, without
compromising Acxiom’s commitment to customer excellence. However,
with the expanded importance of digital media, we are entering a
new phase in Acxiom’s evolution. The Board intends to find a new
CEO who is an exceptional executive and also is an industry thought
leader who will move aggressively to accelerate Acxiom’s
growth.”
The Board of Directors has appointed Jerry D. Gramaglia, a
member of the Board, to serve as interim Chief Executive Officer
while the Board conducts a search for a permanent replacement. He
will continue as a member of the Board of Directors, but will
relinquish his Compensation and Governance / Nominating Committee
memberships during his tenure as interim CEO.
Mr. Gramaglia has been a director of Acxiom since 2009. He was
the President and Chief Operating Officer for E*TRADE Group Inc.,
and then served as partner at Arrowpath Venture Partners, a Silicon
Valley-based venture capital firm. Mr. Gramaglia began his career
at Procter and Gamble and later held senior marketing and general
management positions for Nestle, PepsiCo, Imasco and Sprint. He is
currently a private investor/advisor.
Mr. Durham continued, “We are fortunate to have a person of
Jerry Gramaglia’s caliber to serve as our interim CEO. Jerry has
been an important contributor to our Board, and his leadership and
operational skills, coupled with his deep marketing experience,
make him well suited to guide Acxiom as we search for a permanent
CEO.”
The Governance / Nominating Committee of the Board of Directors
will oversee the process for the identification and selection of a
new Chief Executive Officer. Candidates from both inside and
outside the company will be considered.
In addition, the company announced that Christopher W. Wolf has
informed the company of his intention to resign for personal
reasons from his position as Chief Financial Officer of the company
in the second calendar quarter of 2011. In particular, Mr. Wolf
indicated his desire to stop commuting to Little Rock from his home
in Florida and to spend more time with his family. He has agreed to
remain with the company for an undetermined period of time in order
to assist in the transition of the company’s financial reporting
function. Candidates for a replacement Chief Financial Officer from
both inside and outside the company will be considered.
The company also announced that it expects to record a non-cash
impairment charge in the fourth quarter of fiscal 2011 in
connection with a write-down of the carrying value of goodwill and
other long-lived assets associated with its international
operations. As a result of recent performance of the international
operations and management’s evaluation of those businesses,
indicators arose during the fourth quarter requiring the company to
accelerate the process to review goodwill and other long-lived
assets. The goodwill associated with the international components,
as of December 31, 2010, was approximately $130 million. Due to the
complexity of the calculation process, and the need for appraisals
and analyses that have not yet been obtained and performed, the
company is currently unable to estimate with precision the amount
of the impairment charges. However, the company currently estimates
that these amounts will be between $50 million and $90 million.
The company expects to include the actual amount of the
impairment charge when it announces its fourth quarter and fiscal
year 2011 financial results. The actual amount of the impairment
charge will affect the reported amounts of operating income, net
income and diluted earnings per share, but will not affect cash
balances or cash provided by operating activities.
Based on currently available information, the company announced
the following estimates for the fourth quarter and fiscal year
ending March 31, 2011:
- Revenue is estimated to be in the range
of $295 million to $299 million for the fourth quarter and $1.156
billion to $1.160 billion for fiscal year 2011.
- Earnings per diluted share attributable
to Acxiom stockholders, excluding unusual items, are estimated to
be in the range of $0.18 to $0.22 for the fourth quarter and $0.65
to $0.69 for fiscal year 2011.
- Earnings (loss) per diluted share
attributable to Acxiom stockholders presented in accordance with
generally accepted accounting principles are estimated to be in the
range of ($1.03) to ($0.49) for the fourth quarter and( $0.49) to
$0.05 for fiscal year 2011.
In addition to the estimate of the goodwill impairment charge,
unusual items in the fourth quarter will include other
restructuring and impairment charges in both the U.S. and
international operations. A reconciliation of these estimates to
the company’s estimates of earnings per diluted share attributable
to Acxiom stockholders presented in accordance with generally
accepted accounting principles is attached to this press
release.
The company will hold a conference call at 8:00 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.
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 may contain forward-looking statements including,
without limitation, statements regarding the range of a write-down
of the carrying value of certain assets and of impairment charges
and restructuring costs and the ranges of revenue and earnings per
share attributable to Acxiom stockholders for the fourth quarter
and fiscal year ending March 31, 2011. 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 Report 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.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6664210&lang=en
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER DILUTED SHARE ATTRIBUTABLE TO ACXIOM
STOCKHOLDERS EXCLUDING UNUSUAL ITEMS
AND RECONCILIATION TO EARNINGS PER DILUTED
SHARE ATTRIBUTABLE TO ACXIOM STOCKHOLDERS
PRESENTED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES
The press release to which this reconciliation is attached includes
the company’s estimates of earnings per diluted share attributable
to Acxiom stockholders excluding unusual items, which are not
presented in accordance with accounting principles generally
accepted in the United States (“GAAP”). The company’s management
believes that earnings per diluted share attributable to Acxiom
stockholders excluding unusual items is a useful measure in
understanding the impact of unusual items on the company’s
operations. The company’s estimates of earnings per diluted share
attributable to Acxiom stockholders excluding unusual items may not
be comparable to similarly titled measures used by other companies
and should not be considered in isolation or as a substitute for
measures of performance presented in accordance with GAAP.
(Unaudited) (Dollars in thousands, except earnings per share)
Estimate
Estimate For the quarter ending March 31, 2011 For the
year ending March 31, 2011 Low High Low High Earnings (loss)
before income taxes (75,500) (29,500) (10,342) 35,658
Unusual items 100,400 60,400 96,760 56,760 Earnings before
income taxes and unusual items 24,900 30,900 86,418 92,418
Earnings (loss) before income taxes (75,500) (29,500)
(10,342) 35,658 Income taxes 8,182 10,762 30,793 33,373
Net earnings (loss) (83,682) (40,262) (41,135) 2,285
Less: Net earnings attributable to noncontrolling interest (500)
(500) (1,862) (1,862) Net earnings (loss) attributable to
Acxiom (83,182) (39,762) (39,273) 4,147 Earnings (loss) per
share attributable to Acxiom stockholders: Basic (1.03)
(0.49) (0.49) 0.05 Diluted (1.03) (0.49) (0.49) 0.05
Unusual items: International goodwill impairment 90,000
50,000 90,000 50,000 Other restructuring and impairment costs
10,400 10,400 6,760 6,760 Total unusual items 100,400 60,400
96,760 56,760
Earnings before income taxes and excluding
unusual items
24,900 30,900 86,418 92,418 Income taxes 10,678 13,258
35,257 37,837 Non-GAAP net earnings 14,222 17,642 51,161
54,581 Less: Net earnings attributable to noncontrolling
interest (500) (500) (1,862) (1,862) Non-GAAP Net earnings
(loss) attributable to Acxiom 14,722 18,142 53,023 56,443
Non-GAAP earnings per share attributable to Acxiom Stockholders:
Basic 0.18 0.23 0.66 0.70 Diluted 0.18 0.22 0.65 0.69
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
Von Jul 2023 bis Jul 2024