Fair Isaac Announces Third Quarter 2007 Results

Fair Isaac Corporation (NYSE:FIC) yesterday announced third quarter revenues of $205.8 million in fiscal 2007 compared to $207.1 million reported in the prior year period. Net income for the third quarter of fiscal 2007 totaled $23.8 million, or $0.42 per diluted share, compared to $26.0 million, or $0.40 per diluted share, reported in the prior year period.

Third quarter fiscal 2006 results included $4.4 million in revenues from the mortgage product line, which was sold in March 2007. Third quarter fiscal 2006 results also included restructuring costs of $3.4 million after-tax, or $0.05 per diluted share.

Third Quarter Fiscal 2007 Revenues Highlights

Revenues for third quarter fiscal 2007 across each of the company’s four operating segments were as follows:

• Strategy Machine Solutions revenues were $113.2 million in the third quarter compared to $114.8 million in the prior year quarter, or a decrease of 1.4%, primarily due to the divestiture of the mortgage product line last quarter and a decline associated with customer management and originations products. The declines were offset by an increase in revenues derived from collections and recovery, consumer and fraud products.
• Scoring Solutions revenues increased to $47.2 million in the third quarter compared to $43.7 million in the prior year quarter, or by 8.0%, primarily due to an increase in revenues from risk scoring services at the credit reporting agencies and the FICO Expansion score.
• Professional Services revenues were $35.3 million in the third quarter compared to $36.7 million in the prior year quarter, or a decrease of 4.0%, primarily due to a decline associated with industry consulting, fraud, and collections and recovery implementation services, offset by an increase in revenues derived from customer management and Blaze Advisor(TM) implementation and consulting services.
• Analytic Software Tools revenues were $10.1 million in the third quarter compared to $11.9 million in the prior year quarter, or a decrease of 14.8%, due to a decrease in revenues generated from sales of the Blaze Advisor and Model Builder products.

"I am encouraged by our progress over the past several months toward building a solid strategic, organizational and operational foundation for renewed and sustainable growth," said Mark Greene, Chief Executive Officer of Fair Isaac. "Our strategic focus on Enterprise Decision Management, product innovation and international development enable us to advance and expand our relationships with clients and prospects. Further, we continue to strengthen our leadership team with proven executives who are firmly committed to accelerating Fair Isaac’s growth and creating more value for our shareholders."