Plan Aims To Boost Annual Profit By 20%

Article Excerpt

FAIR ISAAC CORP. $36 (New York symbol FIC; Aggressive Growth Portfolio, Manufacturing & Industry sector; WSSF Rating: Average) aims to spur its profit growth with a new restructuring plan. It will cut roughly 8% of its workforce, which will cost it $5.7 million for severance and other items. But the plan should save Fair Isaac $24 million (pre-tax) a year. To put that in context, the company earned $0.40 a share (total $27.0 million) in its second fiscal quarter ended March 31, 2006. The latest per-share earnings figure included a $0.02 writedown, and $0.10 in employee stock option expenses. The company also plans to focus its marketing operations on types of clients instead of individual products. That should help its salespeople better understand customer needs, improve satisfaction and create more cross-selling opportunities. Paying more attention to customer needs should help Fair Isaac compete with a new credit scoring system that three major credit agencies recently teamed up to develop. Fair Isaac is still a buy…

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