Profit Falls at Fair Isaac

Fourth-quarter earnings decline 38.3% and its CEO departs.
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Fair Isaac

(FIC)

, a provider of analytics and decision technology, Wednesday reported that its fourth-quarter earnings declined 38.3% from the year-ago period and that its CEO has resigned.

The Minneapolis-based company earned $22.1 million, or 35 cents a share, in the quarter, compared with $35.8 million, or 53 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $28.7 million, or 57 cents a share.

Fourth-quarter revenue rose a marginal 1.96% from a year ago to $207.3 million. Analysts were expecting $207.76 million in revenue.

Operating profit declined 40.44% from a year ago to $31.63 million and operating margin decreased significantly to 15.26% from 26.12% a year ago.

By segment, fourth-quarter revenues from strategy machine segment increased 1.82% from a year ago to $111.6 million, from scoring solutions segment it decreased 4.81% from a year ago to $45.5 million, from professional services segment it increased 10.78% from a year ago to $37 million and from analytic software segment it increased 4.76% from a year ago to $13.2 million.

The company expects earnings of 48 cents a share for the first-quarter 2007 and $2.1 a share for fiscal 2007. Analysts expect earnings of 59 cents for first-quarter 2007 and $2.44 a share for fiscal 2007.

Now that Thomas Grudnowski has stepped down as chief executive officer, the company has launched a search for a new CEO. Charles Osborne, Fair Isaac's chief financial officer, has been named chief executive officer on an interim basis.

Separately, Fair Isaac authorized a new $500 million share repurchase program.

The company's shares were trading down $1.20, or 3.29%, at $35.26 in recent after-hours trading Wednesday.

This story was created through a joint venture between TheStreet.com and IRIS.