While the Little Rock, Arkansas-based company had predicted revenue in the range of $256m to $261m, it now expects a figure of $238m, 5.8% above the level a year earlier.
Even worse, it expects to record non-cash write-offs of $35m to $40m, related to impaired investments, software write-offs, and actions taken to cut cuts. These amounts, equivalent to $0.25 to $0.29 a share, will leave it nursing a loss of $0.22 to $0.26 a share. While the consensus of analysts’ estimates was for earnings of $0.21 a share, the figure before special items will be just $0.03.
Acxiom has been able to record steady growth in a difficult economic environment, and news that the company was not immune to the slowdown sent its shares down 20.9% to $13.04.
While originally the company forecast that revenue in 2004 would be $1.08bn to $1.12bn, it now expects a figure 5% lower, and has cut by 10% its original earnings per share estimate of between 78 and 82 cents.
Source: Computerwire
