Fair Isaac Reports LowerEarnings
MINNEAPOLIS - (04/28/06) -- Fair Isaac & Co., provider ofthe financial industry's leading credit score, known as FICO, saidnet income for its fiscal second quarter ended March 31 declined21% to $27 million, or 40 cents a share, due to several accountingcharges. That included $6.5 million for the first-time adoption ofFinancial Accounting Standard 123 recording compensation expensesfor stock options, and $3.2 million for adoption of Emerging IssuesTask Force No. 04-8 writing down convertible debt. The company alsotook a $1.4 million charge in the quarter for expenses related toan abandoned acquisition. Second quarter revenues grew 6% to $208.2million. For the first six months of its fiscal year Fair Isaacreported a 5% rise in revenues to $410.9 million, and an 11%decline in net income to $55.4 million, or 83 cents a share. Thefirst half of the year included a 12% gain in revenue from thecompany's scoring solutions operations, which provides risk scoringservices at credit reporting agencies.