Data Warehouse, List Processing Drive Record Acxiom ResultsInformation services provider Acxiom Corp., Conway, AR, yesterday reported new highs in earnings and revenue for the quarter and fiscal year ended March 31.
For the quarter, earnings grew 39 percent to $19.6 million or $0.23 per share which met Wall Street expectations while revenues were up 29 percent to $208.9 million. For the year, Acxiom reported a net loss of $16.4 million or $0.22 per share due to special charges. Annual revenues were up 28 percent to $729.9 million while earnings before special charges grew 34 percent to $65.5 million or $0.78 per share.
The services business segment, which handles consulting, data warehousing and list processing, saw revenue gains of 36 percent for both the quarter and the year and generated $420 million in total revenues. Financial services, which represents one half of the services segment, saw revenues increase 52 percent. The data products segment, which includes the firm's list products, saw revenue gains of 16 percent for the quarter and 20 percent for the year and generated a total of $187 million.
Revenues at list management and brokerage subsidiary Acxiom/Direct Media, Greenwich, CT, were flat for the year due to the scaling back of its international operations. Had those operations remained intact, revenue growth was projected at eight percent. Specific revenue figures for DMI were not disclosed. Sales of the InfoBase list and enhancement database were up 21 percent.
The acquisition of May & Speh, one of five purchases completed during the year, contributed over $150 million to Acxiom's total revenues.
Company leader Charles Morgan said the Acxiom Data Network made great strides in its first year and has left Acxiom better prepared for the data warehouse and marketing trends of the future. The burgeoning growth of e-commerce will also be a driver of growth of the ADN.
"We are reaching a critical size to give us a true advantage in the marketplace,'' he said. "The Acxiom Data Network will affect the Acxiom value prop and the industry as a whole.''
Acxiom's results were buttressed by $82.2 million in data content revenue from top client Allstate Insurance and the signing of a five-year, $90 million contract with Montgomery Ward.