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.
For comments and feedback: editorial@rttnews.com