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Acxiom Corp. Reports Operating Results (10-Q)

Feb 08, 2012 | About:
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Acxiom Corp. (ACXM) filed Quarterly Report for the period ended 2011-12-31.

Acxiom Corp. has a market cap of $1.06 billion; its shares were traded at around $13.56 with a P/E ratio of 18 and P/S ratio of 0.9. Acxiom Corp. had an annual average earning growth of 12.2% over the past 10 years.


This is the annual revenues and earnings per share of ACXM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ACXM.


Highlight of Business Operations:

Marketing and Data Services revenue for the nine months ended December 31, 2011 was $568.9 million, representing a $25.6 million, or 4.7%, increase from the same period a year ago. On a geographic basis, International MDS revenue increased $5.1 million, or 5.6%, while US MDS revenue increased $20.6 million, or 4.5%. Excluding the impact of the Portugal and Netherlands disposals as well as favorable exchange rate movements, International MDS revenue increased approximately $2.1 million in the period. A revenue decline in Brazil of approximately $1.2 million was offset by modest increases in the other regions. In the US, MDS revenue increases were reflected in most industry verticals, in particular the Retail, Automotive, Media and Technology vertical markets.

Other Services revenue for the quarter ended December 31, 2011 was $15.9 million, representing a $4.4 million, or 21.5%, decrease from the same quarter a year ago. Excluding the $1.4 million impact of the MENA disposal that occurred during the second quarter of the current fiscal year, Other Services revenue decreased approximately $3.0 million during the current quarter. Revenue from the UK Fulfillment and US Risk operations were down $1.8 million and $1.0 million, respectively, in the quarter due to lower project revenue with existing customers. Revenue from other operations in the segment was flat.

Cost of revenue was $215.5 million for the quarter ended December 31, 2011, representing a decrease of $3.0 million, or 1.4% compared to the same quarter a year ago. Gross margins decreased from 24.1% to 23.3% in the quarters ending December 31, 2010 and 2011, respectively. Margins in the quarter were negatively impacted by lower International revenue. US gross margins decreased from 24.3% to 24.1% in the quarters ending December 31, 2010 and 2011, respectively, primarily due to increasing delivery costs. International gross margins were 18.4% in the current fiscal quarter compared to 23.2% in the same quarter a year ago primarily due to increasing losses in Brazil.

Cost of revenue was $654.4 million for the nine months ended December 31, 2011, representing an increase of $16.8 million, or 2.6% compared to the same period a year ago. Gross margins decreased from 22.9% to 22.4% in the nine months ended December 31, 2010 and 2011, respectively. US gross margins decreased from 24.4% to 23.9% in the nine months ended December 31, 2010 and 2011, respectively, primarily due to increasing delivery costs. International gross margins were 13.2% for the nine months ended December 31, 2011, compared to 13.4% during the same period a year ago primarily due to increasing losses in Brazil. International margins benefited from the MENA disposal that occurred during the second quarter of the current fiscal year.

Selling, general, and administrative expenses were $34.8 million for the quarter ended December 31, 2011. This represents an 11.4% decrease compared to $39.2 million reported in the prior-year same quarter. As a percentage of total revenue, these expenses were 12.4% compared to 13.6% a year ago. Selling, general and administrative expenses were $107.9 million for the nine months ended December 31, 2011. This represents a 4.6% decrease compared to $113.1

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