CoreLogic widens loss as sell off begins
CoreLogic (CLGX) widened losses in the third quarter to $107 million, or $1.01 per share, from $93 million a year earlier. In August, the data analytics and tech provider formed a committee and brought in Greenhill & Co. to consider a wide-range of strategies going forward, including a possible sale. First American Financial Corp. (FAF) offered to buy back all or part of the company that spun off from it one year ago, according to a recent Securities and Exchange Commission filing. During the third quarter, CoreLogic sold five business units and reported them as discontinued, including its appraisal management business, several consumer credit units and its marketing services. These five business units lost the company $15.6 million in the third quarter, though nearly $11 million was in shutdown costs. CoreLogic laid off 6% of its workforce as well and expects another 5% reduction in the fourth quarter. The company estimated it would cut costs between $80 million and $100 million over the course of 2011 and 2012. Revenue increased 5.5% to $348.4 million from last year, driven mostly by a 14.5% income jump in its valuable data and analytics department. But revenue from its business and information department dropped 22% to $169.3 million. A constricted foreclosure pipeline and a still stagnant mortgage origination market continue to hurt the bottom line. "With a more focused set of businesses and an aggressive cost-reduction plan, we believe CoreLogic is positioned for stronger financial results in 2012 and beyond with less dependency on improvement in the mortgage market," said CoreLogic CEO Anand Nallathambi. Write to Jon Prior. Follow him on Twitter @JonAPrior.