FICO Announces Earnings of $0.51 per Share for Second Quarter Fiscal 2013

SAN JOSE, Calif. — April 24, 2013 — FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced financial results for its second fiscal quarter ended March 31, 2013.

Second Quarter Fiscal 2013 GAAP Results
Net income for the quarter totaled $18.5 million, or $0.51 per share, versus $20.0 million, or $0.55 per share, reported in the prior year period.

Second Quarter Fiscal 2013 Non-GAAP Results
Non-GAAP Net Income for the quarter was $25.4 million vs. $24.1 million in the prior year period. Non-GAAP EPS for the quarter was $0.69 vs. $0.66 in the prior year period. Free cash flow for the quarter was $31.4 million vs. $36.0 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.

Second Quarter Fiscal 2013 GAAP Revenue
The company reported revenues of $179.3 million for the quarter as compared to $159.5 million reported in the prior year period, an increase of 12%.

“We continue to pursue initiatives that will propel our growth and generate recurring revenue streams within and beyond our core financial services business,” said Will Lansing, chief executive officer. “Despite the softness we saw in license sales this quarter, we remain committed to our guidance for the year, and confident in our long-term strategy to capitalize upon the enormous opportunities we see in Big Data analytics.”

Revenues for the second quarter fiscal 2013 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 $117.2 million in the second quarter compared to $96.1 million in the prior year quarter, an increase of 22%. This was due to revenues associated with last year’s acquisition of Adeptra, Ltd. and increases in Fraud Solutions revenues.
• 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 $44.1 million in the second quarter compared to $44.4 million in the prior year quarter, a decrease of 1%.
• Tools revenues, which include Blaze Advisor^®, Xpress Optimization and related professional services, were $18.0 million in the second quarter compared to $19.0 million in the prior year quarter, a decrease of 5%, primarily due to fewer license sales recorded during the quarter.

Outlook
The company is reiterating the previously issued GAAP guidance for fiscal 2013, as follows:

Fiscal 2013 GAAP Guidance

Revenue

$760 million - $770 million

GAAP Net Income

$100 million

GAAP Earnings Per Share

$2.80

In addition, the company is providing Non-GAAP guidance for fiscal 2013, as follows:

New Fiscal 2013
Non-GAAP Guidance

Non-GAAP Net Income

$128 million

Non-GAAP Earnings Per Share

$3.60

The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results.”

Company to Host Conference Call
The company will host a webcast today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its second quarter fiscal 2013 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 May 24, 2013.

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: Make every decision count™.
For FICO news and media resources, visit www.fico.com/news.

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. 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, 2012 and Form 10-Q for the quarter ended December 31, 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.

FICO 2nd Quarter 2013 Earnings Release Financials