EDM solutions provider Fair Isaac Corp. (FIC) Wednesday reported an increase in second quarter profit on a $7.7 million gain from the sale of insurance bill review business, despite a 6.8% decline in revenue. Fair Isaac provided fourth quarter guidance that is below current Street expectations.
Third quarter net income for Minneapolis-based Fair Isaac increased 11.5% to $26.51 million or $0.54 per share from $23.77 million or $0.42 per share in the prior-year quarter, exceeding Street estimates of $0.38 per share.
Income from continuing operations declined 28% to $18.80 million or $0.38 per share from the same quarter last year. Profit from discontinued operation was $7.70 million or $0.16 per share, compared to loss from discontinued operations of 2.34 million or $0.04 per share in the year-earlier quarter.
The company completed the sale of its Insurance Bill Review business unit on April 30, 2008, and the results for that business unit have been reported as a discontinued operation.
Revenue decreased 6.8% to $183.32 million from $196.63 million in the corresponding quarter last year, below Street expectation of $189.72 million.
On a segmental basis, revenue from Strategy Machine Solutions decreased 8.9%, Scoring Solutions decreased 20.5%, while Professional Services increased 11.3% from a year ago. Analytic Software Tools increased 16.6% from the comparable quarter last year.
Operating income was down to $30.12 million from $40.12 million in the year-ago quarter.
For nine-month period, net income declined 21.3% to $60.17 million or $1.21 per share, while revenue decreased 3.2% to $566.66 million from the prior-year period.
For the fourth quarter, the company expects earnings of $0.36 per share and revenues from continuing operations of $187.0 million. The Street currently expects earnings of $0.37 per share on revenues of $190.23 million for the fourth quarter.
FIC closed Wednesday's regular trading at $23.02, up $1.32 or 6.08%, on a volume of 1.14 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.