FAIR ISAAC CORPORATION 
By MINNEAPOLIS, Jan. 26, 2012 /PRNewswire/ -- FICO (NYSE: FICO), the leading provider of analytics and decision management technology, today announced financial results for its first fiscal quarter ended December 31, 2011. Separately, the company also announced today the appointment of William J. Lansing as Chief Executive Officer, effective January 27, 2012.
(Logo: http://photos.prnewswire.com/prnh/20111010/CG83314LOGO)
First Quarter Fiscal 2012 Results
Net income for the quarter totaled $30.0 million, or $0.81 per share as compared to prior-year period net income of $16.0 million, or $0.40 per share.
First Quarter Fiscal 2012 Revenue
The company reported revenues of $170.3 million for the quarter as compared to $155.9 million reported in the prior year period an increase of 9%.
"We continued to advance along our growth trajectory, delivering strong results across our portfolio and revenue growth in all of our segments," said Mark Greene, chief executive officer. "The operating leverage we created over the last year is yielding the benefits we anticipated, despite continued uncertainty in the capital markets and only modest macroeconomic growth. Our growth strategy is working, and we remain focused on executing our plan to better serve our clients and create value for FICO shareholders."
Revenues for first quarter fiscal 2012 across each of the company's three operating segments were as follows:
-- Applications revenues, which include the company's preconfigured
Decision Management applications and associated professional services,
were $110.2 million in the first quarter compared to $97.6 million in
the prior year quarter, an increase of 13%, primarily due to an increase
in revenue from Fraud Management solutions, slightly offset by a decline
in Customer Management solutions and Marketing solutions.
-- Scores revenues, which include the company's business-to-business (B2B)
scoring solutions and associated professional services, and the myFICO®
business-to-consumer (B2C) service, were $42.5 million in the first
quarter compared to $40.8 million in the prior year quarter, an increase
of 4%, due to our business-to-business (B2B) scoring solutions.
-- Tools revenues, which include Blaze Advisor®, Xpress Optimization and
related professional services, were $17.6 million in the first quarter
compared to $17.5 million in the prior year quarter, an increase of 1%,
primarily due to an increase in Optimization license sales during the
quarter.
Bookings
Bookings for the first quarter were $59.2 million compared to $84.0 million in the prior year period. Bookings represent contracts signed in the current reporting period that will generate new future revenue streams. Management regards the volume of bookings achieved, among other factors, as an important indicator of future revenues, but they are not comparable to, nor should they be substituted for, an analysis of the company's revenues, and they are subject to a number of risks and uncertainties concerning timing and contingencies affecting product delivery and performance.
Balance Sheet and Cash Flow
Cash and cash equivalents, and investments were $246.9 million at December 31, 2011, as compared to $256.7 million at September 30, 2011. Significant changes in cash and cash equivalents from September 30, 2011, include $41.1 million of cash provided by operations, $15.0 million from the issuance of common stock, $7.8 million related to the purchase of property and equipment, and $0.7 million of dividends paid. The company also repurchased $57.7 million of common stock during the quarter.
Outlook
The company reiterates the previously issued guidance for fiscal 2012, which follows:
Fiscal 2012 GAAP Guidance
Revenue $640 million - $645 million
GAAP Net Income $86 million - $89 million
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GAAP Earnings Per Share $2.45 - $2.55
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Company to Host Conference Call
The company will host a webcast today at 5:00 p.m. Eastern Time (4:00 p.m. Central Time/2:00 p.m. Pacific Time) to report its first quarter fiscal 2012 results, provide various strategic and operational updates, and to discuss the appointment of the new CEO. The call can be accessed at FICO's Web site at www.FICO.com (follow the instructions on the Investor Relations page). A replay of the webcast will be available through February 24, 2012.
The webcast will also be distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).
About FICO
FICO (NYSE:FICO) delivers superior predictive analytics that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the FICO® Score -- the standard measure of consumer credit risk in the United States -- along with the industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world's top banks, as well as leading insurers, retailers, pharma businesses and government agencies rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com. Learn more at www.fico.com. FICO: Make every decision count.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company's Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions or in the markets we serve, and other risks described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2011. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.
FICO, myFICO and Blaze Advisor are all trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.
-Financial tables follow-
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended December 31, 2011 and 2010
(In thousands, except per share data)
(Unaudited)
Quarter Ended
December 31,
------------
2011 2010
---- ----
Revenues:
Transactional and maintenance 114,183 114,762
Professional services 28,693 27,908
License 27,473 13,261
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Total revenues 170,349 155,931
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Operating expenses:
Cost of revenues 45,974 45,803
Research & development 13,049 18,061
Selling, general and administrative 57,324 59,633
Amortization of intangible assets 1,930 1,929
Restructuring - 869
118,277 126,295
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Operating income 52,072 29,636
Other expense, net (8,447) (8,213)
Income from operations before income
taxes 43,625 21,423
Provision for income taxes 13,628 5,414
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Net income 29,997 16,009
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Basic earnings per share: 0.83 0.40
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Diluted earnings per share: 0.81 0.40
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Shares used in computing earnings per share:
Basic 36,034 39,923
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Diluted 36,887 40,439
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FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2011 and September 30, 2011
(In thousands)
(Unaudited)
December 31, September 30,
2011 2011 (1)
---- -------
ASSETS:
Current assets:
Cash and cash equivalents $175,375 $135,752
Marketable securities 56,212 105,826
Accounts receivable, net 117,301 104,974
Prepaid expenses and other
current assets 16,151 17,929
Total current assets 365,039 364,481
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Marketable securities and
investments 15,332 15,104
Property and equipment, net 33,329 33,017
Goodwill and intangible assets,
net 681,503 684,186
Other assets 30,477 32,680
$1,125,680 $1,129,468
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and other
accrued liabilities $57,478 $60,260
Accrued compensation and employee
benefits 26,359 36,470
Deferred revenue 47,962 41,768
Current maturities on long-term
debt 8,000 8,000
Total current liabilities 139,799 146,498
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Senior notes 504,000 504,000
Other liabilities 19,623 13,476
Total liabilities 663,422 663,974
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Stockholders' equity 462,258 465,494
$1,125,680 $1,129,468
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(1) Derived from audited financial statements.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Quarters Ended December 31, 2011 and 2010
(In thousands)
(Unaudited)
Quarter Ended
December 31,
------------
2011 2010
---- ----
Cash flows from operating activities:
Net income $29,997 $16,009
Adjustments to reconcile net income to
net cash provided by
operating activities:
Depreciation and
amortization 5,528 6,455
Share-based compensation 4,757 4,034
Changes in operating
assets and liabilities
net of disposition
effects 670 6,203
Other, net 197 179
Net cash provided by
operating activities 41,149 32,880
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Cash flows from investing activities:
Purchases of property and
equipment (7,757) (1,328)
Net activity from
marketable securities 49,473 21,415
Net cash provided by
investing activities 41,716 20,087
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Cash flows from financing activities:
Proceeds from issuances of
common stock 15,023 68
Repurchases of common
stock (57,685) (2,169)
Other, net 954 (363)
Net cash used in financing
activities (41,708) (2,464)
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Effect of exchange rate
changes on cash (1,534) (270)
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Increase in cash and cash
equivalents 39,623 50,233
Cash and cash equivalents,
beginning of period 135,752 146,199
Cash and cash equivalents,
end of period $175,375 $196,432
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FAIR ISAAC CORPORATION
REVENUE BY SEGMENT
For the Quarters Ended December 31, 2011 and 2010
(In thousands)
(Unaudited)
Quarter Ended
December 31,
------------
2011 2010
---- ----
Applications revenues:
Transactional and maintenance $64,272 $66,597
Professional services 24,327 24,749
License 21,617 6,290
Total applications revenues $110,216 $97,636
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Scores revenues:
Transactional and maintenance $42,197 $40,505
Professional services 288 239
License 57 71
Total scores revenues $42,542 $40,815
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Tools revenues:
Transactional and maintenance $7,714 $7,660
Professional services 4,078 2,920
License 5,799 6,900
Total tools revenues $17,591 $17,480
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Total revenues:
Transactional and maintenance $114,183 $114,762
Professional services 28,693 27,908
License 27,473 13,261
Total revenues $170,349 $155,931
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SOURCE FICO
