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IN A YEAR IN WHICH Arkansas' public companies generally languished - or disappeared - the state's premier high-tech company proved that it could still innovate and do so profitably.
Acxiom Corp. of Little Rock, introduced AbiliTec, a customer data integration (CDI) software product, in September 1999, but its potential as a revenue generator, profit center and Wall Street attention getter first became evident in 2000. Acxiom's stock price has increased about 65 percent this year, while the Nasdaq exchange on which it trades has fallen 30 percent.
"The fact that the stock is up so much in a very difficult market is a reflection of investors' perception of Acxiom's growth prospects," said Thatcher Thompson, director of Global Securities Research and Economics for Merrill Lynch & Co. in New York.
AbiliTec is responsible for much of the stock's surge from $21 a share to $35 in the past year, analysts said, despite investors' initial skittishness over Acxiom's decision to bet its future on an unproven new product that CEO Charles Morgan says is "changing the heart of Acxiom.
The gamble appears to have paid off. AbiliTec's contribution to the 31-year-old company's revenue stream grew from an estimated $5 million in the first quarter of the company's 2001 fiscal year to a reported $40 million in the second quarter, which ended Sept. 30. It was the first time AbiliTec's revenue was listed separately in the company's quarterly report.
Acxiom anticipates $90 million-$125 million in AbiliTec revenue this fiscal year, and clients include topdrawer companies like Microsoft Corp., Citicorp Credit Services, Mercedes-Benz USA, Rodale Press, Palm Inc., Bank One Services Corp. and American Express.
Computer Associates, R.L. Polk & Co., USAData.com, Digital Archeology and E.piphany.com signed internaluse and partnership agreements.
Analysts are bullish about AbiliTec and the company's stock, with December 2001 target prices ranging from $50-$70 a share. And the company is projecting rapid growth now that it is playing in a much bigger field. The company is also hoping that AbiliTec will drive revenue growth in Acxiom's traditional services.
"If you look at Acxiom today, we're at about $1.2 billion in revenue," said Andy Griebel, head of the company's strategic alliances group. "Charles' vision is for Acxiom to grow to a $5 billion company in the...