It seems the steet thinks fairIssac may have stretched the truth on there financials(Tell me it ain't so) on about $6.2 million non-core revenues. The wealth of info in the 10k disclosure is just staggering. Here are some examples.... Revenues from services produced through credit bureaus increased 14% in fiscal 2001, 13% in fiscal 2000 and 14% in fiscal 1999, and accounted for approximately 38% of revenues in fiscal 2001 Research and development costs have been Decreasing about 10% a year since 1999. Their effective tax rate was 40%. "We are dependent upon major contracts with credit bureaus." "A substantial portion of our revenues is derived from contracts with the three major credit bureaus. These contracts, which normally have a term of five years or less." They mention some things that worry them,like; privacy laws, like provisions of the Financial Services Modernization Act of 1999 and the European Union (EU) the Privacy Directive (Directive 95/46/EC) Now this Jewel... "The permitted uses of consumer report data in connection with certain customer acquisition efforts are governed primarily by the FCRA. The relevant federal preemption provisions effectively sunset in 2004. Unless extended, the sunset of preemption could lead to greater state regulation, increasing the cost of customer acquisition activity. Such state legislation could cause financial institutions to pursue new strategies, negatively affecting the demand for our existing offerings." Did someone just let the horse out of the barn??? VJ
Can someone explain to me what this means in English? I'm an accountant and we don't use big words. Dani
I see this in it. 1-Thje consumers laws are putting the hurt on them. 2-If the states enact and enforce stricter more consumer frindly protection laws their business will go down the tubes even more:
Many analysts believe 1999-2000 marked a top in the market for consumer finance. More people are starting to pay down credit card debt. With 100 million credit cards out there, how many more can be issued?
Fair Isaac is just another fad! When it comes down to it, I think it will be the content of the consumer's report that is evaluated rather than the score. It has been known that some just out of BK can have a 700+ score. The lender's systems will just use certain criteria as a basis for approval or denial just as they have in the past.
I dunno George, they're stupid enough that they need to stay right where they are. God forbid a really brilliant organization might pop up to take over the reins...
