ChoicePoint Income Falls

The identification services firm is hit by expenses related to fraudulent data access.
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ChoicePoint

(CPS) - Get Report

, provider of identification and credential-verification services, reported a 29.4% drop in its profit for the fourth quarter, hit by expenses related to fraudulent data access.

The company earned $27.7 million, or 30 cents a share, in the quarter, compared with $39.2 million, or 43 cents a share, a year ago. Excluding expenses related to fraudulent data access, earnings were 44 cents a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 45 cents a share.

Fourth-quarter revenue rose 10.9% from a year ago to $257.9 million. Analysts were expecting revenue of $261.3 million in the most recent quarter.

The company expects 2006 full year internal revenue growth to be in the 7% to 9% range, exclusive of acquisitions. Operating margin is expected to improve by 50 to 100 basis points, excluding the stock option, legal and other expenses. Analysts were estimating revenue of $1.16 billion for 2006.

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