Fair Isaac's Top Line Weak in Fiscal 4Q

As Fair Isaac had previously announced, its fiscal fourth quarter came in a little weak. Revenue increased 2% year over year, with modest year-over-year growth of 5% on the services side partially offset by a 12% decline in license sales. Management noted that a few large license sales fell out of the quarter, and it's not uncommon to see quarterly volatility in this area. But management also struck a fairly conservative tone, noting that it has been seeing sales cycles lengthen, suggesting this could be an ongoing issue. Still, from a long-term perspective, the gains on the service side are more important, given the generally recurring nature of this revenue, and the growth rate here is in line with our long-term expectations.