Acx­iom sus­tains 1Q loss of $1.3M

That’s down from $4M profit in ’16

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - DAVID SMITH

Acx­iom Corp. lost $1.3 mil­lion in its first quar­ter that ended June 30, the Con­way-based data bro­ker said Thurs­day.

That is com­pared with a net in­come of about $4 mil­lion in its first quar­ter last year.

Acx­iom lost 2 cents per share for the quar­ter but had op­er­at­ing in­come — in­come be­fore taxes and cer­tain other ex­penses — of 14 cents a share, match­ing pro­jec­tions of six an­a­lysts sur­veyed by Thom­son Reuters. Acx­iom earned 5 cents a share in the first quar­ter last year.

The com­pany had rev­enue of $212.5 mil­lion in the quar­ter, com­pared with $214.8 mil­lion in the first quar­ter last year.

Acx­iom had to back off ear­lier pro­jec­tions it made for two of its op­er­at­ing di­vi­sions, the mar­ket­ing-ser­vices and au­di­ence-so­lu­tions seg­ments, said Scott Howe, Acx­iom’s chief ex­ec­u­tive of­fi­cer.

The com­pany main­tains the earn­ings pro­jec­tions it pro­vided ear­lier for those seg­ments for 2018, Acx­iom’s cur­rent fis­cal year.

But the com­pany now re­al­izes that pro­jec­tions were too ag­gres­sive, Howe said.

In mar­ket­ing ser­vices, the tim­ing for con­tracts will be slower than Acxi-

● om orig­i­nally fore­cast, Howe said. Mar­ket­ing ser­vices is Acx­iom’s largest seg­ment.

In au­di­ence so­lu­tions, which rec­on­ciles data points to in­di­vid­u­als and sells data sets to mar­keters, the im­pact of pric­ing-model changes will slow growth in later quar­ters this year, Howe said.

Bob Wil­liams, se­nior vice pres­i­dent and man­ag­ing di­rec­tor of Sim­mons First In­vest­ment Group Inc. in Lit­tle Rock, said, “It’s con­cern­ing to hear that they’ve low­ered guid­ance.”

Pro­jec­tions for Acx­iom’s third busi­ness seg­ment, Con­nec­tiv­ity, were cor­rect, Howe said. Con­nec­tiv­ity is Acx­iom’s new­est seg­ment, in­volv­ing on­line data ser­vices.

Acx­iom reached a new in­ter­na­tional part­ner­ship with Google Cus­tomer Match, which re­sulted in new busi­ness with Sam­sung and Lon­don’s Heathrow Air­port, said War­ren Jen­son, Acx­iom’s chief fi­nan­cial of­fi­cer.

Acx­iom also signed part­ner­ships with so­cial me­dia web­sites Pin­ter­est and LinkedIn that will en­hance the tar­get­ing of peo­ple on their sites, the com­pany said.

Acx­iom was awarded five new patents re­cently for data pro­cess­ing and man­age­ment tech­nol­ogy, the com­pany said.

Acx­iom shares fell 7 cents to close Thurs­day at $26.77. The earn­ings re­port was re­leased af­ter U.S. mar­kets closed.

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