The heat is on management to improve the declining fortunes of this leading marketing services company. Its challenges are evident by CEO Howe’s remarks: “Fiscal 2013 was a year of transition for the company. This past year we re-ignited product innovation, invested in our clients and our associates and continued to support our shareholders through our stock repurchase program. Looking ahead to 2014 we expect to continue to invest in our new product suite, add new customers and anticipate product launches in the later part of the fiscal year.”
- Marketing and Data Services: Revenue for the fourth quarter decreased 3 percent to $197 million, as compared to $203 million for the same period a year ago. U.S. revenue of $168 million was relatively flat. Income from operations for the fourth quarter was $21 million, compared to $30 million in the prior year. Operating margin was 11 percent, compared to 15 percent in the previous year. The decrease in margin is primarily attributable to investments in data and our Audience Operating System.
Revenues for the fiscal year were $ 767 million compared to $ 771 million for the prior year or down .5%
- IT Infrastructure Management: Revenue for the fourth quarter decreased 4 percent to $65 million, compared to $68 million for the same period a year ago. Income from operations for the quarter was $2 million, compared to $6 million in the prior year. Operating margin was approximately 4 percent, compared to 9 percent a year ago. The decline in operating income and margin was primarily associated with a one-time contract adjustment for an existing customer.
Revenues for the fiscal year were $ 275 million compared to $ 291 million for the prior year or down 5.5%
- Other Services: Revenue was $14 million as compared to $16 million in the prior year. Loss from operations was roughly $1 million in each year.
Revenues for the fiscal year year were $ 56 million compared to $ 67 million for the prior year or down 16.7%
Financial Guidance: FICO expects revenue for the fiscal year to be roughly flat as compared to $1.099 billion in Fiscal 2013. Revenue growth in Marketing and Data Services is expected to be offset by a decline in revenue in IT Infrastructure Management. Earnings per diluted share attributable to Acxiom shareholders are also expected to be roughly flat.