Acxiom’s 2nd-quarter profit falls

Analyst links 40% drop from year ago to innovation work

Acxiom Corp.’s net income for its fiscal-2014 second quarter fell 40 percent compared with the same period a year ago, the Little Rock-based company said Wednesday.

Acxiom reported a profit of $9.8 million for the quarter, down from last year’s $16.5 million net income.

Revenue was $276.3 million for the period that ended Sept. 30, down slightly from $277.5 million in the same quarter a year ago.

“We think the net-income declines are primarily driven by the investments they are making in future products,” said Brett Huff, an analyst with Stephens Inc. in Little Rock.

He said the investments were in products such as the Acxiom Audience Operating System, which was introduced during the quarter as a new tool to give marketers a comprehensive view of their audiences.

Acxiom is mainly a datamining company that uses information to help its customers target consumers in advertising and marketing campaigns.

“We are at an inflection point and starting the next chapter in our journey,” said Scott Howe, the company’s chief executive officer, in a prepared statement. “We are a new company. Over the past two years we have worked to build a better business and to drive innovation. While it’s early, we are pleased with our launch of the Acxiom Audience Operating System and the resulting customer reaction and support.”

Acxiom’s earnings per share attributable to shareholders for the quarter also fell from the previous year. Acxiom had earnings per share of 13 cents, compared with 21 cents in the same quarter during fiscal 2013.

Excluding “unusual items,” Acxiom’s earnings per share

would have been 20 cents, and in line with analyst estimates.

“They met our expectations,” Huff said. “We think the expectations of the market as well.”

Shares of Acxiom fell 92 cents, or 2.7 percent,j1 Wednesday to close at $32.63 on the Nasdaq stock exchange. Acxiom released its financial results before markets closed and held a conference call at 4 p.m. to discuss the results.

During the quarter, Acxiom spent $22.7 million to buy back about 900,000 shares. Since the start of the company’s repurchasing program in 2011, Acxiom has bought back 12 million shares, about 14.6 percent of outstanding common stock, for $179 million. The company’s share repurchase authorization is $200 million.