Fair Isaac's Profit Slumps

Revenue comes in essentially flat.
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SAN FRANCISCO - Fair Isaac's revenue and earnings were hit hard during its second quarter as the company undergoes a restructuring.

The Minneapolis, Minn. software company said second-quarter revenue was essentially flat at $193.2 million, vs. $190.7 million for the same quarter of last year. Analysts were expecting $204.7 million, according to Thomson Financial.

Net income was down to $13.5 million, or 28 cents a share , from $21.4 million, or 37 cents a share, one year ago.

Excluding a charge of 8 cents a share from a re-engineering plan, Fair Isaac posted a profit from continuing operations of 44 cents a share, meeting the average estimate of analysts polled by Thomson Financial.

Shares of Fair Isaac were off 2 cents in recent after-hours trading to $26.41.

The company projected revenue from continuing operations for the second half of its fiscal year at $380 million and EPS of 74 cents. Analysts were looking for revenue of $425.5 million and EPS of $1.03, but it wasn't apparent that the figures were comparable.

Fair Isaac combined its projections for the next two quarters because it plans to sell some business lines. On April 1, the company announced a reorganization that involves the sale of some of its products, which is expected to reduce annual revenue by $65 million and lower costs by $100 million.

In 2006, Fair Isaac's FICO scoring system came under competitive pressure from the company's three primary credit bureau customers --

Equifax

(EFX) - Get Report

,

Experian

and

TransUnion

-- which banded together to create VantageScore, a competing credit scoring system.

In the sector,

Advent Software

(ADVS)

is due to report earnings Tuesday afternoon, and

SAP

(SAP) - Get Report

is set to report before the market opens Wednesday.