) reported earnings per share of 19 cents in the third quarter of
2013 (ended Dec 30, 2012) compared with 10 cents in the year-ago
quarter. The quarterly earnings were well ahead of the Zacks
Consensus Estimate by 18.8%. Excluding one-time items, EPS
decreased 14% to 19 cents in the reported quarter.
Total revenue came in at $273 million, down 3.0% year over
year and missing the Zacks Consensus Estimate of $278
The Marketing and Data Services segment sales edged up 1.4%
year over year to $190.1 million. The increase in revenues in
this segment was driven by increase in U.S. revenue (up 4% to
$160 million) offset by lower international revenues.
The company's IT Infrastructure Management segment fell around
9.0% annually to reach $70 million.
Other Services revenues dropped nearly 19.7% year over year to
$13 million in the reported quarter.
Operating margin for the quarter came in at 9.8% versus 5.5%
in the year-ago quarter. The annual rise in margin was driven by
the company's IT infrastructure management segment.
Marketing and Data Services operating margin was 10% compared
to 11.0% in the previous-year quarter. The IT Infrastructure
Management segment reported an operating margin of 14.0%, up from
13.0% in the year-ago quarter. Other Services operating margin
came in at (6.3%) versus (3.3%) in the previous-year quarter.
Balance Sheet and Cash Flows
Acxiom ended Dec 31, 2012 with cash and cash equivalents of
$186.2 million, down from $229.6 million at the end of Mar 31,
2012. Net trade accounts receivable came in at $182.4 million, up
from $169.4 million at the end of Mar 31, 2012.
Long-term debt came in at $240.7 million as on Dec 31, 2012,
down from $251.8 million at the end of Mar 31, 2012.
The net cash provided by operating activities was $38.5
million during the third quarter of 2013 compared to $82.5
million in the prior year period. The decline in operating cash
flow was attributable to higher working capital and increased tax
In the reported quarter, the company repurchased 1 million
shares for $18.3 million. A total of 9.9 million shares were
bought back by Acxiom for $131 million since Aug 2011.
Concurrent with the earnings release, management provided its
guidance for fiscal 2013. For fiscal 2013, management expects
revenues to be down approximately 2.5% annually. The decline is
due to a decrease in IT infrastructure management and
international operations. The company expects earnings per share
to be 73 cents for full year 2013 compared to the prior guidance
of 70 cents.
Revenues from top 100 customers, representing over 80% of all
US marketing and data service revenues were up over 9%
year-to-date. Going forward, the company intends to focus more on
expanding its client base and cater to the needs of small and
mid-tier customers with the release of new products. However, the
company faces intense competition from industry bigwigs, which
include formidable names such as
Acxiom currently has a Zacks Rank #3 (Hold). One of its
) carries a Zacks Rank #2 (Buy).
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