Industry News

Fair Isaac profit drops 21%

Company impacted by stock-based compensation expenses

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

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...