Shares of Fair Isaac Corp. declined on Tuesday, after the business advisory company posted a lower second-quarter profit weighed down by charges and a loss from discontinued operations.
Profit declined to $13.5 million, or 28 cents per share, from $21.4 million, or 37 cents per share, a year earlier. Results in the most recent quarter include charges of $4 million, or 8 cents per share, for a reorganization plan.
The total loss from discontinued operations, which includes a $4.2 million loss on the sale of its Insurance Bill Review business unit, was $10.1 million.
Income from continuing operations _ which excludes results from businesses that have been, or are in the process of being sold _ totaled $17.8 million, or 36 cents per share.
Revenue rose to $193.2 million from $190.7 million, helped by a 39.1 percent rise in revenue in its analytic software tools unit.
Analysts polled by Thomson Financial, who typically exclude one-time items from their estimates, expected a profit of 43 cents per share and sales of $204.7 million.
During the quarter, operating expenses rose to $164.7 million from $154.1 million.
Robert W. Baird analyst Mark Bacurin warned that expenses are rising and business trends are softening, with poor revenue from its scoring solutions unit, which helps clients determine their customers' credit scores. Sales in that segment declined 7.2 percent to $39.3 million.
"We continue to expect the weak economic environment to hinder ongoing turnaround efforts," Bacurin wrote in a client note.
Shares of the company shed $3.17, or 12 percent, to $23.36 in afternoon trading. The stock has lost 18 percent since the start of the year.
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