Acxiom Revenue Up, Profits Down
Revenue was $330.5 million for Q2 2006, up 11 percent from $299.1 in the previous year's quarter. Profits were $7.1 million, or 8 cents per share, versus $18.5 million, or 20 cents per share, in Q2 2005.
The earnings reflect pre-tax charges of $15.8 million associated with restructuring that stemmed from shortfalls in Q1.
"During our second quarter, we saw 11 percent year-over-year revenue improvement, the expense-reduction initiative we announced in June produced better than expected results, our business in Europe improved, and we signed a number of large, new deals," company leader Charles D. Morgan said in a statement. "These results give us an encouraging outlook for the third and fourth quarters."
Meanwhile, investment firm ValueAct Capital Partners LP still looks to gain control of Acxiom. Earlier this year, ValueAct stated its intent to issue an offer of $23 per share for all outstanding shares of common stock.
The letter, dated June 3, from San Francisco-based ValueAct Capital managing partner Jeffery W. Ubben criticized Acxiom's financial management and board of directors for failing to increase shareholder value. ValueAct owns 10 percent of Acxiom's stock.
Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters.