Accounting & Tax

Acxiom Restates over Revenue Accrual

Announcement of the accounting errors comes just weeks after the company suffered a huge quarterly loss.
Stephen TaubMay 16, 2008

Acxiom Corp. says it will restate financial statements for 2007, 2006, and prior years to correct its accounting related to accrued service revenue.

The restatement will reduce net income by $2.4 million in 2006 and $2.9 million in 2007, says the provider of customer and information management solutions. Acxiom also says accrued revenue, which is reflected in accounts receivable, will be reduced by $52.2 million.

The company notes that its management and audit committee have consulted with KPMG about the matter.

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Acxiom lost $58.3 million in the March 31 quarter compared with a profit of $5.7 million in the comparable quarter a year ago due to $107.2 million in costs, mostly because of a restructuring.

The company has been a target of activist hedge fund ValueAct Capital, which owns more than 13 percent of its shares.

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