Fair Isaac Announces First Quarter 2008 Results

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(Minneapolis, Minnesota, USA) - Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision technology, today announced the financial results for its first quarter ended December 31, 2007.

First Quarter Fiscal 2008 Results
The company reported first quarter revenues of $199.4 million in fiscal 2008 versus $208.2 million reported in the prior year period. Net income for the first quarter of fiscal 2008 totaled $20.2 million, or $0.39 per diluted share, versus $31.2 million, or $0.52 per diluted share, reported in the prior year period.

First Quarter Fiscal 2008 Revenues Highlights
Revenues for first quarter fiscal 2008 across each of the company's four operating segments were as follows:

  • Strategy Machine® Solutions revenues were $105.6 million in the first quarter compared to $109.8 million in the prior year quarter, or a decrease of 3.8%, primarily due to the divestiture of the mortgage product line in the second quarter of fiscal 2007 and a decline associated with insurance solutions, marketing solutions and customer management products, partially offset by an increase in revenues derived from collections and recovery, fraud and consumer products.
  • Scoring Solutions revenues were $42.7 million in the first quarter compared to $44.9 million in the prior year quarter, or a decrease of 4.9%, primarily due to a decrease in revenues derived from our PreScore® Service.
  • Professional Services revenues were $37.1 million in the first quarter compared to $39.3 million in the prior year quarter, or a decrease of 5.6%, primarily due to a decline associated with fraud, and customized analytic implementation services, partially offset by an increase in revenues derived from customer management and marketing solutions services.
  • Analytic Software Tools revenues decreased to $13.9 million in the first quarter compared to $14.2 million in the prior year quarter, or by 2.0%, due to a decline in revenues generated from the sale of tool products.

Bookings Highlights
The bookings for the first quarter were $102.4 million compared to $72.1 million in the same period last year. The company defines a "new booking" as estimated future contractual revenues, including agreements with perpetual, multi-year and annual terms. Management regards the volume of new bookings achieved as one indicator of future revenues, but they are not comparable to, nor should they be substituted for, an analysis of the company's revenues.

Balance Sheet and Cash Flow Highlights
Cash and cash equivalents, and investments were $238.6 million at December 31, 2007, as compared to $246.8 million at September 30, 2007. Significant changes in cash and cash equivalents from September 30, 2007 include cash provided by operations of $48.0 million, borrowings under the revolving credit facility of $20.0 million, and $13.2 million received from the exercise of stock options and stock issued under an employee stock purchase plan. Cash used during the first quarter includes $7.4 million related to purchases of property and equipment and $82.4 million to repurchase common stock.

Acquisition of Dash Optimization Limited
The company also announced today that it has acquired Dash Optimization ("Dash"), the leading software provider of optimization, for $32 million. Dash's optimization technology complements our vision to "be the leader in decision management" and our mission to "help businesses make smarter decisions." Dash develops and markets Xpress-MP, the world's leading software product for modeling and optimization. Xpress-MP solves large-scale optimization problems and enables better business decisions and resulting financial benefits.

We intend to integrate this technology into our Decision Middleware™ business offering the market-leading solution in business rule management systems, optimization software components and predictive analytics. Dash is completely focused on optimization and works in close partnership with its customers and OEM partners. Dash has offices in the United Kingdom, Germany, the United States and Japan with distribution partners in Europe and the Far East.

The company expects revenues for second quarter fiscal 2008 to be approximately $205.0 million and earnings per diluted share to be approximately $0.44. The company expects revenues for fiscal 2008 to be approximately $825.0 to $835.0 million and earnings per diluted share to be approximately $1.80 to $1.90.

Company to Host Conference Call
The company will host a conference call today at 5:00 p.m. Eastern Time (4:00 p.m. Central Time/2:00 p.m. Pacific Time) to discuss its first quarter fiscal 2008 results, and outlook for the remainder of fiscal 2008. The call can be accessed live on the Investor Relations section of the company's Web site at www.fairisaac.com, and a replay will be available approximately two hours after the completion of the call through March 22, 2008.

About Fair Isaac Corporation
Fair Isaac Corporation (NYSE:FIC) makes decisions smarter. The company's solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Founded in 1956, Fair Isaac powers hundreds of billions of decisions each year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector. Fair Isaac also helps millions of individuals manage their credit health through the www.myfico.com website. Visit Fair Isaac online at www.fairisaac.com.

Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to Fair Isaac 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 Enterprise Decision Management strategy, its ability to recruit and retain key technical and managerial personnel, 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, competition, regulatory changes applicable to the use of consumer credit and other data, the possibility that the anticipated benefits of acquisitions, including expected synergies, will not be realized and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10 K for the year ended September 30, 2007. If any of these risks or uncertainties materialize, Fair Isaac's results could differ materially from its expectations. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.

Fair Isaac, Strategy Machine, Decision Middleware and PreScore are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.

Financial tables:

Q1-08 Earnings Release Financials (PDF)

Media contacts


Katie O’Connell

+1 510-621-9832

Europe, Middle East & Africa

Darcy Sullivan

+44 (0) 7808-777-339

Asia Pacific

Saxon Shirley

+65 6422-7795

Latin America

Marisa Arribas

+1 786 482 7231

América Latina

Milla Delfino

+55 11 97673-6583

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