Acxiom Corporation integrates data, services and technology to create and deliver customer and information management solutions. The Company has three business segments: Services, Data and Software Products, and Information Technology (IT) Management. Its Services segment provides solutions that integrate and manage customer, consumer and business data using its information management skills and technology, as well as its InfoBase data products.

URL: http://www.acxiom.com

For the 12-month period ended March 31, 2008, revenue totaled $1.384 billion compared to $1.391 billion in the prior year. Income from operations for the 12 month period was $40.2 million compared to $154.1 million a year ago. Loss per diluted share was $0.10 compared to earnings per diluted share of $0.80 in the prior year. The loss per diluted share includes the impact of $84.2 million, or the equivalent of $0.70 per diluted share, of expense from unusual items. 
A schedule is linked to this release outlining the restructuring and other items impacting the fourth quarter and the year end results. 
According to John Meyer, Acxiom Corp. CEO and President, "During my first 90 days I have focused on meeting our customers and our people, rationalizing costs and gaining a deeper understanding of our offerings and value propositions. I have also made a number of leadership and role changes. 

"We are working to develop strategic and operational plans to help overcome the current challenges we are facing in some industry sectors and to provide a springboard for growth in future years. The initial focus will be on our customers and potential customers, leveraging our capabilities and assets across all industries we serve, and creating a winning market-facing culture. We already have a very strong foundation to do that. I believe in this opportunity now even more than when I was evaluating coming on board." 

Restatement, Restructuring and other items 
The Company is restating its financial statements for 2007, 2006, and prior years to correct its accounting related to accrued service revenue. The impact of this restatement will be a reduction in net income of $2.4 million in 2006 and $2.9 million in 2007. Accrued revenue, which is reflected in accounts receivable, will be reduced by a total of $52.2 million. 

Fourth-quarter loss per diluted share of $.76 includes $107.2 million or the equivalent of $0.91 per share in unusual expenses. The major components of the restructuring and other items are: 

-- Gains, losses and other - $74.5 million composed of: 
-- Restructuring charges - $42.9 million related to headcount reduction, real estate closure, contract termination; 
-- Closing operations - $13.5 million related to previously acquired operations and the flight department; 
-- Asset disposal/impairment - $15.0 million, primarily software; 
-- Other - $3.1 million related to legal, international and other; 
-- IT contract restructuring - $34.0 million reflected as increase in cost of services; 
-- Loss on investment - $2.7 million reflected in Other, net; 
-- Accrued revenue restatement - $.4.0 million increase in revenue. 

Of the $107.2 million in restructuring and other items, approximately $59.2 million represents balance sheet assets written down that do not require cash outlays. Approximately $48.0 million represents estimated cash payments to be made on obligations primarily related to headcount reductions, real estate and facilities lease terminations and an aircraft lease termination. The $48 million includes obligations of approximately $34 million to be paid in fiscal 2009, with the remainder in future periods. 

Details of Acxiom's fourth-quarter results include: 

-- Revenue of $349.8 million compared to $356.4 million in the fourth quarter a year ago; 
-- Loss from operations of $76.0 million compared to income from operations of $28.4 million in the fourth quarter last year; Loss from operations this quarter included $107.2 million of restructuring and other items; 

-- Loss per diluted share of $0.76 compared to earnings per share of $0.07 in the fourth quarter of fiscal 2008; included in the loss per share of $0.76 is the negative impact of restructuring and other items which was the equivalent of $.91 per diluted share; 

-- Operating cash flow of $90.5 million compared to $76.5 million in the fourth quarter a year ago; 

-- Free cash flow available to equity of $14.7 million compared to $15.4 million a year ago; free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this press release. 

Details of Acxiom's fiscal year results include: 

-- Revenue of $1.384 billion compared to $1.390 billion in the prior year; 

-- Income from operations of $40.2 million in 2008 compared to $154.1 million in fiscal 2007; 

-- Loss per diluted share of $0.10 compared to earnings per diluted share of $0.80 in fiscal 2007; net restructuring and other items for the year were $84.2 million, or the equivalent of $0.70 per diluted share; In addition to the restructuring and other items in the fourth quarter detailed above, the company had a benefit of a net gain of $22.9 million comprised of: 

-- Gains from a merger termination payment and sale of assets of $68.2 million; 

-- Restructuring costs, transaction costs, retirement and loss on sale of assets of $30.0 million; 

-- Additional contract impairment in cost of services of $10.0 million; 

-- Reduction in revenue related to accrued revenue restatement to previous quarters of $5.2 million; 

-- Operating cash flow of $300.3 million compared to $260.0 million in the prior year; 

-- Free cash flow available to equity of $77.5 million compared to $55.2 million a year ago; free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this press release. 

Segment information: 

-- Information Services Division: The division develops, sells and delivers industry-tailored solutions globally through the integration of products, services and consulting. Revenue for the quarter was $189.7 million, up 0.8 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was $741.3 million, up 1.8 percent from the previous year. Operating income for the quarter was $24.1 million, down 7.7 percent from the third quarter of the previous year. For the 12 months just ended, operating income was $97.2 million, down 22.0 percent from the previous 12-month period. 
-- Information Products Division: The division develops and sells all global data products, including InfoBase-X(R) and PersonicX(R), as well as fraud and risk mitigation products sold in the U.S., including InsightIdentify. It focuses on product development, product lifecycle management, data content management and innovation. Revenue for the quarter was $115.2 million, up 5.2 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was $431.3 million, up 3.8 percent from the previous year. Operating income for the quarter was $13.1 million, up 45.9 percent from the fourth quarter of the previous year. For the 12 months just ended, operating income was $23.8 million, up 25.7 percent from the previous 12-month period. 

-- Infrastructure Management Division: The division develops and delivers information technology products and services that improve a company's ability to manage its information technology delivery platform with lower costs and higher efficiencies. Such offerings include traditional IT outsourcing and transformational solutions such as the Acxiom data factory. Revenue for the quarter was $108.2 million, down 8.8 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was $447.5 million, down 6.1 percent from the previous year. Operating income for the quarter was $8.3 million, down 16.1 percent from the fourth quarter of the previous year. For the 12 months just ended, operating income was $44.3 million, down 10.3 percent from the previous 12-month period. 

Investor Day 

As mentioned above, the company will be hosting an investor day on June 17 and providing a forecast for fiscal 2009 at that time. Company management will also discuss operations and prospects at the investor day. The event will be held at the NASDAQ facilities in New York and will be web cast. Further information will be made available on our website at www.acxiom.com.