Shares of Acxiom Corporation (ACXM) plunged 22.68% on the heels of the announcement that the company’s CEO and President John A. Meyer has resigned from his positions, effective March 28, 2011.
Additionally, the CFO Christopher W. Wolf will also resign from his position in the second quarter of 2011, due to personal reasons.
The board of directors appointed Jerry D. Gramaglia, a member of the board, to serve as interim CEO while it looks for a permanent replacement. Mr. Gramaglia has been a director of Acxiom since 2009.
Acxiom also updated its guidance for the fourth quarter and fiscal year 2011. Acxiom announced that it expects to incur a non-cash impairment charge of approximately $50–$90 million in the fourth quarter of fiscal 2011, related to a write-down of the carrying value of goodwill and other long-lived assets associated with its international operations. The goodwill associated with international components, as of December 31, 2010, was approximately $130 million.
Acxiom expects revenues between $295 million and $299 million in the fourth quarter. A loss of $1.03–$0.49per share in the fourth quarter. Excluding goodwill impairment charge, other restructuring and impairment charges in both the U.S. and international operations, Acxiom expects to record earnings per share (EPS) of 18 cents to 22 cents in the fourth quarter.
For fiscal 2011, Acxiom projects revenues between $1.156–$1.160 billion. EPS is forecast between ($0.49)–$0.05. Excluding one-time items, Acxiom forecasts EPS between 68 cents and 69 cents.
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