Acxiom Corporation (ACXM) has reported a 33.41 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $7.14 million, or $0.09 a share in the quarter, compared with $10.72 million, or $0.14 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.90 million, or $0.18 a share compared with $11.41 million or $0.14 a share, a year ago.
Revenue during the quarter grew 4.79 percent to $217.27 million from $207.34 million in the previous year period. Gross margin for the quarter expanded 323 basis points over the previous year period to 44.72 percent. Operating margin for the quarter period stood at positive 3.28 percent as compared to a negative 0.99 percent for the previous year period.
Operating income for the quarter was $7.12 million, compared with an operating loss of $2.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $41.17 million compared with $34.94 million in the prior year period. At the same time, adjusted EBITDA margin improved 210 basis points in the quarter to 18.95 percent from 16.85 percent in the last year period.
"Solid second quarter performance was driven by continued strong global execution across each of our businesses," said Acxiom chief executive officer Scott Howe. "In addition, we are very excited by the launch of LiveRampTM IdentityLinkTM to power people-based marketing for the open ecosystem. Identity resolution is key to understanding the customer journey and delivering superior customer experiences. LiveRamp is creating the foundation which will enable true omnichannel marketing."
Acxiom Corporation forecasts revenue to be in the range of $860 million to $870 million for fiscal year 2017. For financial year 2017, the company forecasts diluted earnings per share to be $0.12. For financial year 2017, the company forecasts diluted earnings per share to be $0.60 on adjusted basis.
Operating cash flow improves
Acxiom Corporation has generated cash of $36.23 million from operating activities during the first half, up 8.63 percent or $2.88 million, when compared with the last year period.
The company has spent $11.69 million cash to meet investing activities during the first six months as against cash outgo of $30.56 million in the last year period.
The company has spent $37.94 million cash to carry out financing activities during the first six months as against cash outgo of $94.85 million in the last year period.
Cash and cash equivalents stood at $175.41 million as on Sep. 30, 2016, down 3.06 percent or $5.54 million from $180.94 million on Sep. 30, 2015.
Working capital declines
Acxiom Corporation has witnessed a decline in the working capital over the last year. It stood at $170.21 million as at Sep. 30, 2016, down 9.01 percent or $16.85 million from $187.06 million on Sep. 30, 2015. Current ratio was at 1.93 as on Sep. 30, 2016, down from 1.98 on Sep. 30, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 61 days for the same period last year.
At the same time, days payable outstanding went down to 29 days for the quarter from 30 for the same period last year.
Debt comes down
Acxiom Corporation has recorded a decline in total debt over the last one year. It stood at $174.62 million as on Sep. 30, 2016, down 16.43 percent or $34.33 million from $208.95 million on Sep. 30, 2015. Total debt was 15.85 percent of total assets as on Sep. 30, 2016, compared with 18.13 percent on Sep. 30, 2015. Debt to equity ratio was at 0.25 as on Sep. 30, 2016, down from 0.30 as on Sep. 30, 2015.
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