FICO Announces Earnings of $0.60 per Share for Fourth Quarter Fiscal 2012 Revenue of $186 million vs. $160 million in prior year

MINNEAPOLIS, Nov. 1, 2012 /PRNewswire/ -- FICO (NYSE: FICO), the leading provider of analytics and decision management technology, today announced financial results for its fourth fiscal quarter ended September 30, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20111010/CG83314LOGO)

Fourth Quarter Fiscal 2012 Results
Net income for the quarter totaled $21.2 million, or $0.60 per share, versus $24.6 million, or $0.64 per share, reported in the prior year period. The current quarter results include $3.3 million, net of tax, or $0.09 per share, in restructuring and acquisition related costs.

Fourth Quarter Fiscal 2012 Revenue
The company reported revenues of $186.1 million for the quarter as compared to $160.2 million reported in the prior year period, an increase of 16%. 

"We finished fiscal 2012 with solid Q4 results driven by revenue growth in our Applications and Tools businesses," said Will Lansing, chief executive officer. "The durability of our core solutions remains important as we pursue opportunities to accelerate growth. And as always, producing consistently strong free cash flow remains a top priority."

Revenues for fourth 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 $119.9 million in the fourth quarter compared to $97.4 million in the prior year quarter, an increase of 23%, due primarily to increases in revenue from Customer Management solutions and Collections & Recovery solutions, and to revenue associated with this quarter's acquisition of Adeptra.
  • 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 $46.7 million in the fourth quarter compared to $45.0 million in the prior year quarter. The B2B revenue increased 7% from the prior year quarter, offset by a decline in B2C.
  • Tools revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $19.4 million in the fourth quarter compared to $17.9 million in the prior year quarter, an increase of 9%, primarily due to an increase in Xpress license sales during the quarter.

Bookings 
Bookings for the fourth quarter were $98.6 million compared to $112.0 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 $110.1 million at September 30, 2012, as compared to $256.7 million at September 30, 2011. Significant changes in cash and cash equivalents from September 30, 2011, include $129.7 million of cash provided by operations, $70.8 million from the issuance of common stock from share-based payment plans, $191.1 million used for repurchases of common stock, $123.6 million used for acquisitions, $25.5 million used for purchases of property and equipment, $8.0 million repayment on senior notes, and $2.8 million of dividends paid.

Outlook 
The company is providing guidance for fiscal 2013, which follows:


Fiscal 2013 GAAP Guidance

Revenue

$740 million -  $750 million

GAAP Net Income

$100 million

GAAP Earnings Per Share

$2.80

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 fourth quarter fiscal 2012 results and provide various strategic and operational updates. 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 November 30, 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 and Form 10-Q for the quarter ended June 30, 2012. 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 BALANCE SHEETS

September 30, 2012 and September 30, 2011

(In thousands)

(Unaudited)














September 30,


September 30,


2012


2011

ASSETS:




Current assets:




     Cash and cash equivalents

$                 71,609


$               135,752

     Marketable securities

22,008


105,826

     Accounts receivable, net

142,595


104,974

     Prepaid expenses and other current assets

23,113


17,929

          Total current assets

259,325


364,481





Marketable securities and investments

16,500


15,104

Property and equipment, net

41,080


33,017

Goodwill and intangible assets, net

809,803


684,186

Other assets

31,903


32,680


$            1,158,611


$            1,129,468





LIABILITIES AND STOCKHOLDERS' EQUITY:




Current liabilities:




     Accounts payable and other accrued liabilities

$                 62,603


$                 60,260

     Accrued compensation and employee benefits

50,043


36,470

     Deferred revenue

47,959


41,768

     Current maturities on long-term debt

49,000


8,000

          Total current liabilities

209,605


146,498





Senior notes

455,000


504,000

Other liabilities

19,600


13,476

          Total liabilities

684,205


663,974





Stockholders' equity

474,406


465,494


$            1,158,611


$            1,129,468

 

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

For the Quarters and Years Ended September 30, 2012 and 2011

(In thousands, except per share data)

(Unaudited)


















Quarter Ended 


Year Ended


September 30,


September 30,


2012


2011


2012


2011









Revenues:








     Transactional and maintenance

123,441


115,497


466,175


453,430

     Professional services

33,824


31,410


124,971


115,941

     License

28,810


13,342


85,277


50,312

        Total revenues

186,075


160,249


676,423


619,683









Operating expenses:








     Cost of revenues

55,327


48,763


197,947


186,470

     Research & development

17,602


13,556


59,527


62,129

     Selling, general and administrative

65,040


54,890


238,522


223,615

     Amortization of intangible assets

2,059


1,937


6,944


7,741

     Restructuring and acqusition-related

5,125


-


5,125


12,391


145,153


119,146


508,065


492,346

Operating income

40,922


41,103


168,358


127,337

Other expense, net

(8,242)


(8,042)


(32,115)


(29,882)

Income from operations before income taxes

32,680


33,061


136,243


97,455

Provision for income taxes

11,434


8,442


44,239


25,893

Net income

21,246


24,619


92,004


71,562

























Basic earnings per share:

0.62


0.65


2.64


1.82

Diluted earnings per share:

0.60


0.64


2.55


1.79









Shares used in computing earnings per share:








     Basic

34,262


38,088


34,909


39,359

     Diluted

35,513


38,687


36,063


39,988

 

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended September 30, 2012 and 2011

(In thousands)

(Unaudited)














 Year Ended 


 September 30, 


2012


2011

Cash flows from operating activities:




Net income

$                 92,004


$                 71,562

Adjustments to reconcile net income to net cash provided by 




  operating activities:




      Depreciation and amortization

21,549


24,197

      Share-based compensation

21,229


15,500

      Changes in operating assets and liabilities net of disposition effects

3,923


27,769

      Other, net

(8,959)


(2,872)

         Net cash provided by operating activities

129,746


136,156





Cash flows from investing activities:




Purchases of property and equipment

(25,483)


(14,020)

Net activity from marketable securities

83,592


(37,821)

Cash paid for acquisitions, net of cash acquired

(123,631)


0

Other, net

(148)


140

         Net cash used in investing activities

(65,670)


(51,701)





Cash flows from financing activities:




Payment on Senior Notes

(8,000)


(8,000)

Proceeds from issuances of common stock

70,793


7,613

Repurchases of common stock

(191,056)


(91,422)

Other, net

(190)


(2,212)

         Net cash used in financing activities

(128,453)


(94,021)





Effect of exchange rate changes on cash

234


(881)





Increase in cash and cash equivalents

(64,143)


(10,447)

Cash and cash equivalents, beginning of period

135,752


146,199

Cash and cash equivalents, end of period

$                 71,609


$               135,752

 

FAIR ISAAC CORPORATION

REVENUE BY SEGMENT

For the Quarters and Years Ended September 30, 2012 and 2011

(In thousands)

(Unaudited)



















Quarter Ended 

Year Ended



September 30,

September 30,



2012


2011

2012


2011









Applications revenues:








     Transactional and maintenance


$         71,202


$         64,682

$        263,726


$        258,736

     Professional services


27,445


26,793

104,637


100,921

     License


21,285


5,921

56,241


23,371

          Total applications revenues


$       119,932


$         97,396

$        424,604


$        383,028









Scores revenues:








     Transactional and maintenance


$         44,991


$         43,721

$        172,218


$        164,918

     Professional services


1,073


523

2,382


2,102

     License


672


755

1,023


1,547

          Total scores revenues


$         46,736


$         44,999

$        175,623


$        168,567









Tools revenues:








     Transactional and maintenance


$           7,248


$           7,094

$          30,231


$          29,776

     Professional services


5,306


4,094

17,952


12,918

     License


6,853


6,666

28,013


25,394

          Total tools revenues


$         19,407


$         17,854

$          76,196


$          68,088









Total revenues:








     Transactional and maintenance


$       123,441


$       115,497

$        466,175


$        453,430

     Professional services


33,824


31,410

124,971


115,941

     License


28,810


13,342

85,277


50,312

          Total revenues


$       186,075


$       160,249

$        676,423


$        619,683

 

 

SOURCE FICO



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