Fair Isaac Corp., a developer of credit-scoring systems, Wednesday reported net income of $27 million, or 40 cents per share, in the quarter ended March 31, down 21.3 percent from earnings of $34.3 million, or 45 cents a share, in the same period last year.
Fair Isaac Corp., which develops credit-scoring systems, said second-quarter profit slipped largely due to costs related to new accounting rules on stock options.
Year-to-date fiscal 2006 results included share-based compensation expense of approximately $12.6 million after-tax, or 19 cents per diluted share, due to the adoption of SFAS 123(R), the new rule, the company said.
The Minneapolis-based credit scoring and software company reported second-quarter revenues of $410.9 million versus $391.6 million in the prior-year period.
Net income for year-to-date fiscal 2006 totaled $55.4 million, or 83 cents per diluted share, versus $62.2 million, or 82 cents per diluted share, reported in the prior-year period, the company said.
Fair Isaac said revenue from its core Strategy Machine Systems business grew 6.8 percent to $118.9 million for the quarter, led by increased revenue from consumer scoring products and fraud solutions. Those gains were partially offset by decreased revenue from marketing services and insurance solutions, Fair Isaac said.
Fair Isaac forecast earnings of approximately 44 cents per share for the third quarter of 2006, including compensation expenses of 10 cents a share, on revenue of $210 million. The company posted earnings of 53 cents a share on revenue of $203.8 million in the year-ago period.