Information technology services provider
) reported fourth-quarter fiscal 2013 net income of $13.2 million
or 18 cents per share compared with $46.1 million or 58 cents in
the year-ago quarter. The year-over-year decrease was primarily
due to significant earnings from discontinued operations in
fourth quarter fiscal 2012. Excluding one-time items, earnings
for the reported quarter were 19 cents per share compared with 22
cents in the year-earlier quarter. The adjusted earnings
marginally beat the Zacks Consensus Estimate by a penny.
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For fiscal 2013, Acxiom reported net income of $57.6 million or
75 cents per share compared with $77.3 million or 96 cents in
fiscal 2012. Excluding one-time items, earnings for the reported
fiscal were 76 cents per share compared to 72 cents in the
Total revenue for fourth quarter fiscal 2013 came in at $277.1
million, down 3.5% year over year and missing the Zacks Consensus
Estimate of $287 million. For fiscal 2013, total revenue was
$1,099.4 million compared with $1,130.6 million in the prior
fiscal, representing a 2.8% year-over-year decrease.
By segments, the
Marketing and Data Services
segment sales declined 2.9% year over year to $197.5 million in
fourth quarter fiscal 2013. IT
segment revenues dipped 3.5% in the reported quarter to $65.2
million. Revenues from
segment dropped 11.0% year over year to $14.5 million in the
Operating margin for the reported quarter came in at 7.3% versus
7.8% in the year-ago quarter due to lower margins from IT
Infrastructure Management and Marketing and Data Services
Marketing and Data Services operating margin was 11% compared to
15% in the previous-year quarter. The IT Infrastructure
Management segment reported an operating margin of 4%, down from
9% in the year-ago quarter.
Balance Sheet and Cash Flows
Acxiom ended fiscal 2013 with cash and cash equivalents of $223.0
million, down from $229.6 million at the end of Mar 31, 2012.
Long-term debt came in at $237.4 million, down from $251.9
million in fiscal-end 2012.
Net cash provided by operating activities aggregated $74.2
million during the reported quarter compared to $56.4 million in
the prior-year period. Free cash flow to equity decreased to $42
million for fourth quarter fiscal 2013, compared with $103
million for the comparable period in the previous fiscal.
In the reported quarter, Acxiom repurchased 0.5 million shares
for $9 million. Since Aug 2011, the company has repurchased 10.4
million shares for $140 million. Acxiom's total share repurchase
authorization is $200 million.
Concurrent with the earnings release, management provided its
guidance for fiscal 2014. For fiscal 2014, management expects
both revenues and earnings to remain flat annually. Management is
of the opinion that fiscal 2013 was a transition period for the
company, wherein it invested considerably for new product
innovation and strengthening its client base. Acxiom expects to
continue with these initiatives in fiscal 2014, thereby reaping
synergistic benefits in the future.
Acxiom currently has a Zacks Rank #3 (Hold). Other stocks in the
industry worth reckoning include
), carrying a Zacks Rank #1 (Strong Buy), while
McGraw Hill Financial, Inc. Com
) carry a Zacks Rank #2 (Buy).