LITTLE ROCK, Arkansas (AP) — The data services company Acxiom Corp. said Wednesday its president and CEO, John Meyer, has resigned and that its chief financial officer, Christopher Wolf, plans to step down.
The company also forecast a weaker than expected performance for its fourth quarter and said it will charge up to $90 million against earnings related to the valuation of its international operations.
Its stock tumbled $4.37, or 25 percent, to $13.09 in morning trading.
Acxiom said in a statement that Meyer's resignation was effective Monday and gave no reason for his departure. Meyer became president and CEO of Acxiom in February 2008.
The company's board of directors named board member Jerry Gramaglia as interim CEO. Gramaglia has been on the company's board since 2009. He is a former president and chief operating officer of E-Trade Financial Corp.
The statement said Wolf, who has been with the company since 2007, plans to resign during the second quarter. Acxiom says Wolf indicated he wants to stop commuting to Little Rock from his home in Florida.
Acxiom also said it expects an impairment charge of $50 million to $90 million in the fiscal fourth quarter. The company indicating it is writing down the goodwill and assets of its international operations because those businesses are not performing well.
"As a result of recent performance of the international operations and management's evaluation of those businesses, indicators arose during the fourth quarter requiring the company to accelerate the process to review goodwill and other long-lived assets," Acxiom said.
The company said the goodwill associated with those assets was $130 million as of Dec. 31.
Acxiom also forecast a weak fiscal fourth quarter. The company expects to report adjusted earnings of 18 to 22 cents per share for the three months ended March 31. Including the write-down and other items it expects to take a loss of 49 cents to $1.03 per share. Revenue was estimated at $295 million to $299 million.
Analysts had forecast adjusted earnings of 24 cents per share on $303 million in revenue, according to estimates compiled by FactSet.