Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology today announced financial results for its first fiscal quarter ended December 31, 2008.
First Quarter Fiscal 2009 Results
The company reported first quarter revenues of $163.5 million in fiscal 2009 versus $190.1 million reported in the prior year period. Income from continuing operations for the first quarter of fiscal 2009 totaled $12.1 million, or $0.25 per diluted share, versus $20.8 million, or $0.41 per diluted share, reported in the prior year period. As previously announced, first quarter results included a $5.7 million after-tax restructuring charge for workforce and facility reductions, or $0.12 cents per diluted share.
"Despite the sustained downturn in the global economy and the markets Fair Isaac serves, we remain focused on executing our strategy and maintaining profitability," stated Mark Greene, Chief Executive Officer. "Fair Isaac has a strong balance sheet and substantial free cash flow, which gives us agility and flexibility in today's turbulent financial markets. In addition, we benefit from a global customer base and a broad portfolio of industry-leading solutions for risk management that are particularly relevant in this challenging time."
First Quarter Fiscal 2009 Revenue Highlights
Revenues for first quarter fiscal 2009 across each of the company's four operating segments were as follows:
- Strategy Machine® Solutions revenues were $87.6 million in the first quarter compared to $97.4 million in the prior year quarter, or a decrease of 10%, primarily due a decline associated with fraud, marketing solutions and collections and recovery, partially offset by an increase in revenues derived from consumer products.
- Scoring Solutions revenues were $34.1 million in the first quarter compared to $42.7 million in the prior year quarter, or a decrease of 20%, primarily due to a decrease in revenues derived from our credit bureau risk scores.
- Professional Services revenues were $27.8 million in the first quarter compared to $36.0 million in the prior year quarter, or a decrease of 23%, primarily due to a decline associated with customized analytic implementation services, collections and recovery services and customer management services partially offset by an increase in revenues derived from tools services.
- Analytic Software Tools revenues increased to $14.0 million in the first quarter compared to $13.9 million in the prior year quarter, essentially flat with the prior year period.
Bookings Highlights from Continuing Operations
The bookings for the first quarter were $52.5 million compared to $92.7 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 $298.8 million at December 31, 2008, as compared to $271.2 million at September 30, 2008. Significant changes in cash and cash equivalents from September 30, 2008 include cash provided by operations of $36.7 million and $3.2 million received from the exercise of stock options and stock issued under an employee stock purchase plan. Cash used during the first quarter includes $5.6 million related to purchases of property and equipment.
Q1-09 Earnings Release Financials (PDF)
In light of the continuing uncertainty in the global financial markets and the continued lack of visibility into our clients' spending intentions, we are not providing guidance at this time.
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 2009 results and provide various strategic and operational updates. The call can be accessed at Fair Isaac's Web site at www.fairisaac.com (follow the instructions on the Investor Relations page). A replay of the webcast will be available through February 28, 2009.
The webcast will also being 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 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.
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 Decision Management strategy and reengineering plan, 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, 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, 2008. If any of these risks or uncertainties materializes, 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 and Strategy Machine are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.
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