Fair Isaac 4Q Profit Falls, CEO Leaves

Fair Isaac Earnings Down for the Fourth Quarter and the Year, Chief Executive Departs

MINNEAPOLIS (AP) — Fair Isaac Corp., developer of credit-scoring systems for insurers and lenders, on Wednesday released its fiscal fourth-quarter and full-year financial results, and said Chief Executive Thomas G. Grudnowski has resigned.

The company gave no reason for Grudnowski’s departure after seven years as CEO. Chief Financial Officer Charles M. Osborne becomes interim CEO, and the board said it will begin a search for a permanent replacement immediately.

Net income fell to $22.1 million, or 35 cents per share, from $35.7 million, or 53 cents per share, in the prior-year period. Excluding stock-based compensation charges and costs associated with a lease exit, Fair Isaac earned 60 cents per share in this year’s quarter.

Total operating expenses increased by 17 percent to $175.7 million.

Wall Street, on average, expected profit of 57 cents per share, excluding charges related to stock-based compensation and one-time expenses, according to an analyst poll by Thomson Financial.

Quarterly revenue grew to $207.3 million from $203.3 million, falling short of analysts’ projections of $207.8 million.

For the full fiscal year, net income fell to $103.5 million, or $1.59 per share, from $134.5 million, or $1.86 per share. Revenue rose to $825.4 million from $798.7 million.

Looking ahead, Fair Isaac said it expects first fiscal-quarter earnings per share of about 48 cents on revenue of about $210 million. The outlook includes stock-based compensation charges.

Analysts forecast quarterly profit of 59 cents per share on sales of $211.9 million.

For the full fiscal year, Fair Isaac said it expects earnings per share of about $2.10, including stock-based compensation expenses, on sales of about $870 million.

Wall Street expects full-year earnings of $2.44 per share on sales of $873.1 million.

Fair Isaac also said its board authorized a stock buyback program of up to $500 million.

Shares fell 86 cents, or 2.7 percent, to $35.60 in after-hours trading.

Source: Yahoo! Finance

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