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Acxiom reports $58.3 million 4Q loss, cites restructuring costs Thursday, May 15, 2008 By Jason Wiest Arkansas News Bureau LITTLE ROCK - Acxiom Corp. on Wednesday reported a fourth-quarter net loss of $58.3 million, due largely to restructuring charges, including layoffs that could continue, according to CEO John Meyer. In last year's fourth quarter, the company reported a $5.7 million profit. Revenue fell 1.9 percent compared to last year's fourth quarter to $349.8 million, while costs rose 29.8 percent to $425.8 million. The quarterly loss included $107.2 million worth of one-time charges, including $42.9 million related to headcount reductions, real estate closure and contract termination; $13.5 million related to the closing of previously acquired operations and the company's flight department; and $15 million related to the disposal of software, among other things. Meyer said he expected to see the benefit of the restructuring by June 1, but noted that further restructuring could be forthcoming. "As we learn more about the accountability and where people aren't delivering ... we may find that we have to reduce staff in certain places," Meyer said in a conference call with financial analysts. Meyer took Acxiom's reigns in February, after the retirement of former company leader, Charles Morgan. Several other executives soon followed Morgan's lead, including Rodger Kline, former chief administrative leader, and James Womble, former global development leader. "In the first 90 days, we took out a lot of senior leadership, and didn't replace them," Meyer said. Meyer said that he has been happy so far with the second-tier executives who filled in for them. Acxiom also announced Wednesday that its board of directors had named John Adams as the company's chief operating officer and executive vice president. His experience includes a stint as chief financial officer and vice president for AT&T Business Services. For the year, Acxiom reported a $7.8 million loss, compared to net earnings of $67.9 million in the 2007 fiscal year. Financial statements for 2007, 2006 and prior years will be restated to correct the company's accounting related to accrued service revenue, Acxiom also announced. The restatement will reduce net income by $2.4 million in 2006 and $2.9 million in 2007, the company said. Accrued revenue, which is reflected in accounts receivable, will be reduced by a total of $52.2 million, according to a company statement. Shares of Acxiom (NasdaqGS: ACXM) closed Wednesday at $12.33, up 13 cents. |
