Fair Isaac Q3 Profit Down 5%, Lowers 2013 Outlook

(RTTNews) - Shares of Fair Isaac Corp. (FICO) declined more than 5 percent in extended trades Tuesday after the predictive analytics and decision management software provider reported a 5 percent decline in profit for the third quarter from last year.

Looking ahead to fiscal 2013, the company lowered its outlook for both earnings and revenue to include the impact of the non-cash tax adjustment recorded in the second quarter and potential continued delays in license revenue.

Fair Isaac reported third-quarter net income of $19.62 million or $0.54 per share, down from $20.75 million or $0.59 per share in the comparable quarter last year.

The latest quarter' results include a noncash tax charge of $2.5 million or $0.07 per share, associated with establishing a valuation allowance related to a deferred tax asset. This valuation allowance was required due to recent tax law changes in a state in which the company conducts operations.

Adjusted net income for the quarter was $29.26 million or $0.80 per share, compared to $25.75 million or $0.73 per share in the prior-year quarter. On average, two analysts polled by Thomson Reuters expected the company to earn $0.66 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 15 percent to $183.77 million from $160.48 million in the same period last year.

For fiscal 2013, Fair Isaac now forecasts adjusted net income in a range of $125 million to $128 million, or $3.48 to $3.57 per share. Earlier, the company projected adjusted net income of $128 million or $3.60 per share.

The company now forecasts reported net income of $94 million to $97 million, or $2.61 to $2.70 per share, compared to its prior outlook for net income of $100 million or $2.80 per share.

The company now projects full-year revenue of $755 million to $765 million, down from the prior range of $760 million to $770 million.

Analysts currently expect the company to report earnings of $2.79 per share for the year on revenues of $763.43 million.

FICO closed Tuesday's regular trading session at $50.13, up $0.34 or 0.68 percent on a volume of 120,126 shares. However, in after-hours, the stock declined $2.62 or 5.23 percent to $47.51.