ChoicePoint Takes Loss Amid Planned Divestitures
ChoicePoint Inc., the data firm that rose to prominence after it sold consumer information to scam artists, reported a third quarter loss of $72.2 million on revenue of $246.7 million. During third-quarter 2005, the company generated revenue of $237 million, and had net income of $39.6 million. The quarter ended Sept. 30.
As part of its third-quarter results, the Alpharetta, GA-based company took a loss of $81 million on its pending divestment of three businesses: Precision Marketing; Bdoe Technology Group and EquiSearch.
Since first coming under fire, ChoicePoint has announced plans to strengthen its data vending criteria (“ChoicePoint Stops Selling ‘Sensitive Consumer Data,’ Confirms SEC Investigation” Direct Newsline, Mar. 6 2005).
Among its remaining businesses, Insurance Services generated operating revenue of $116.1 million and operating income of $60.6 million, up from $104.8 million and $57.9 million a year ago.
Screening and Authentication Services revenue rose from $63.7 million a year ago to $66.8 million, despite the heightened re-credentialing efforts for its data products. This unit’s operating income slipped from $16.4 million during third-quarter 2005 to $15.7 million.
Government Services revenue dipped from $35.3 million a year ago to $35.1 million, and operating income for this business slid from $6.5 million to $4.9 million.
Financial and Professional Services generated $28.6 million, down from $32.2 million in third-quarter 2005, and operating revenue fell from $5.1 million to $2.4 million.
