Fair Isaac Announces Second Quarter 2008 Results

Business Wire,  April 28, 2008  

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Earnings per share of $0.28, including a loss from discontinued operations of $0.08;

Earnings per share from continuing operations of $0.36, including net charges related to previously announced reengineering plan of $0.08 per share

MINNEAPOLIS -- Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology, today announced the financial results for its second quarter ended March 31, 2008.

As announced on April 1, 2008, the company entered into a definitive agreement for the sale of its Insurance Bill Review business unit on March 31, 2008. The transaction is expected to close in the third quarter, and has been reported as a discontinued operation within this press release and in the accompanying financial statements.

"We achieved respectable results in a challenging market. We are focused on controlling costs during this tight market, as evidenced by our reengineering for growth effort launched in the quarter, while continuing to invest in our Decision Management growth strategy," said Mark Greene, Chief Executive Officer of Fair Isaac.

Second Quarter Fiscal 2008 Results from Continuing Operations

The company reported second quarter revenues from continuing operations of $193.2 million in fiscal 2008 versus $190.7 million reported in the prior year period. Net income from continuing operations for the second quarter of fiscal 2008 totaled $17.8 million, or $0.36 per diluted share, versus $21.6 million, or $0.37 per diluted share, reported in the prior year period.

Second quarter fiscal 2008 results from continuing operations included after-tax charges of $4.0 million, or $0.08 per diluted share, related to the company's previously announced reengineering plan. The charges relate to a reduction in workforce and facility consolidation.

Second quarter fiscal 2007 results from continuing operations included $3.3 million in revenues from the mortgage product line, which was sold in March 2007.

Second Quarter Fiscal 2008 Revenues from Continuing Operations Highlights

Revenues for second quarter fiscal 2008 across each of the company's four operating segments were as follows:

* Strategy Machine[R] Solutions revenues were $101.3 million in the second quarter compared to $101.7 million in the prior year quarter, or a decrease of 0.3%, primarily due to the divestiture of the mortgage product line in the second quarter of fiscal 2007 and a decline associated with marketing solutions and originations products, offset by an increase in revenues derived from collections and recovery, and customer management products.

* Scoring Solutions revenues were $39.3 million in the second quarter compared to $42.3 million in the prior year quarter, or a decrease of 7.2%, primarily due to a decrease in revenues derived from our PreScore[R] Service.

* Professional Services revenues were $39.5 million in the second quarter compared to $37.3 million in the prior year quarter, or an increase of 6.0%, primarily due to an increase in revenues derived from collections and recovery and Blaze Advisor[TM] implementation services.

* Analytic Software Tools revenues were $13.1 million in the second quarter compared to $9.4 million in the prior year quarter, or an increase of 39.1%, due to an increase in revenues generated from sales of the Blaze Advisor[TM] and Model Builder products.

Fiscal 2008 Year-to-date Results from Continuing Operations

The company reported year-to-date revenues from continuing operations of $383.3 million in fiscal 2008 versus $388.8 million reported in the prior year period. Net income from continuing operations for year-to-date fiscal 2008 totaled $38.6 million, or $0.77 per diluted share, versus $53.2 million, or $0.90 per diluted share, reported in the prior year period.

Year-to-date fiscal 2007 results from continuing operations included $7.7 million in revenues from the mortgage product line, which was sold in March 2007.

Fiscal 2008 Year-to-date Revenues from Continuing Operations Highlights

Revenues for year-to-date fiscal 2008 across each of the company's four operating segments were as follows:

* Strategy Machine[R] Solutions revenues were $198.8 million compared to $202.3 million in the prior year, or a decrease of 1.7%, primarily due to the divestiture of the mortgage product line in the second quarter of fiscal 2007 and a decline associated with marketing solutions and originations products, partially offset by an increase in revenues derived from collections and recovery, and consumer products.

* Scoring Solutions revenues were $82.0 million compared to $87.2 million in the prior year, or a decrease of 6.0%, primarily due to a decrease in revenues derived from our PreScore[R] Service.

* Professional Services revenues were $75.5 million compared to $75.7 million in the prior year, or a decrease of 0.2%, primarily due to a decline associated with originations, and healthcare implementation and consulting services, partially offset by an increase in revenues derived from collections and recovery, customer management and Blaze Advisor[TM] implementation services.