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Fair Isaac Corporation (FICO) |
Posted
on Thursday, September 02, 2004 - 07:45 PM PST
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Fair Isaac Corporation (FICO) is one of the few companies that are in business of selling numbers. The corporation develops and markets formulas that help client companies make better decisions about dealing with customers. Fair Isaac researchers are investing a growing number of business solutions fueled by statistics and consumer data that can be fed into its proprietary formulas.
Fair Isaac started as collaboration between mathematicians William Fair and electrical engineer Earl Isaac in San Rafael, California. They launched their management consulting shop in 1956 and set out to develop a system to help clients predict consumer behavior and make better business decisions. The result was the concept of a credit scorecard, which evolved into FICO. Fair, Isaac & Company, Inc., grew tandem with the credit card industry. In 1987 the business went public. In April 2003 the company adopted its simpler name.
Fair Isaac is the global leader in business analytics and decision management, as its core services are known. The company maintains offices in 12 foreign countries. Although financial institutions remain an important part of the company’s customer’s base, it’s aggressively marketing to broader range of clients. New business in coming from the retail, insurance, healthcare and telecommunications industries.
· 60 percent of the sale is generated by the Strategy Machines.
It develops analytic, data-management and software solutions for clients in medical billing, telecommunication fraud, and prescreening prospective credit customers
· 22 percent of sale is generated by Scoring Solution segment
The unit manages FICO and related scoring systems in the area of consumer credit, marketing, bankruptcy and fraud.
· 13 percent of the sales are generated by Professional Services.
This segment provides customized consulting services. Clients hire Fair Isaac to help them attract new business, Create credit and insurance predictive models an improve customer relations management.
· 5 Percent of the sales is generated by Analytic Software Tools.
The unit markets mathematical tools that businesses can tailor for precise decision-making.
Fair Isaac has a highly predictable top line. Management reports that about 80 percent of its revenues come from recurring business. In addition Fair Isaac dominates several of its markets. The company has role in an estimated 95% of credit card transactions. It influences more than 75% of mortgage decisions, and 80% of US insurers are believed to use its products.
Raising interest rates are a concern raised by some analysts. If higher rates depress the number of mortgage applications nationwide, lenders will have less need for Fair Isaac’s risk-scoring services.
Fair Isaac Corporation (www.fairisaac.com) is traded on the New York Stock Exchanged under the symbol FIC. The head quarter now is in Minnesota. 901 Marquette Ave. #3200. Minneapolis, MN 55402
Note: Additional links are provided. For more information call our office at 888-Do0-Fees or visit our web site at www.0feemortgages.com
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