MINNEAPOLIS—November 3, 2010—FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced financial results for its fourth fiscal quarter ended September 30, 2010.
Fourth Quarter Fiscal 2010 Results
Net income for the quarter totaled $15.8 million, or $0.38 per share, which includes $0.03
per share of restructuring charges. This compares with prior-year period net income of $17.1 million, or $0.35 per share.
Fourth Quarter Fiscal 2010 Revenue
The company reported quarter revenues of $155.1 million versus $151.9 million reported in the prior year period.
“Our results demonstrate growth in both top-line revenue and new bookings, and general stabilization of our business despite continued macroeconomic challenges,” said Mark Greene, chief executive officer. “As we enter fiscal 2011, I believe we’re well-positioned to realize growth by capitalizing on improving market conditions, our robust and relevant product portfolio, and leadership and other organizational enhancements made during the past year.”
Revenues for fourth quarter fiscal 2010 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 $96.1 million in the fourth quarter compared to $94.5 million in the prior year quarter, an increase of 2%, primarily due to an increase in revenue from Fraud Management solutions and Marketing Solutions, slightly offset by a decline in Customer Management 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 $41.7 million in the fourth quarter, which is consistent with the $42.1 million in the prior year quarter.
- Tools revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $17.3 million in the fourth quarter compared to $15.3 million in the prior year quarter, an increase of 13%, primarily due to increases associated with several large license sales during the quarter.
Bookings for the fourth quarter were $105.6 million compared to $85.9 million in the same period last year. 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 $230.3 million at September 30, 2010, as compared to $390.3 million at September 30, 2009. Significant changes in cash and cash equivalents from September 30, 2009 include $105.8 million of cash provided by operations, $196.1 million of cash used to repurchase common stock, $50.0 million related to the repayment of our net debt outstanding, $17.5 million related to the purchase of property and equipment, and $3.6 million of dividends paid.
The company is providing the following financial guidance for fiscal 2011.
Fiscal 2011 GAAP Guidance
$620 million - $625 million
$65 million - $67 million
Earnings Per Share (assumes 39.9 million outstanding shares)
$1.63 - $1.68
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 2010 results and provide various strategic and operational updates. The call can be accessed at FICO's Web site at www.FICO.com/investors. A replay of the webcast will be available through December 3, 2010.
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).
FICO (NYSE:FICO; www.FICO.com) is the leader in decision management, transforming business by making every decision count. FICO combines trusted advice, world-class analytics, and innovative applications to help businesses automate, improve, and connect decisions over customer lifecycles and across the enterprise. Clients in 80 countries work with FICO to increase customer loyalty and profitability, reduce fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of individuals manage their credit health through its consumer website, www.myFICO.com.
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, 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, 2009 and its last quarterly report on Form 10-Q for the period ended June 30, 2010. 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.
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