FICO Announces Earnings of $0.58 per Share for Second Quarter Fiscal 2015

Revenue of $207 million vs. $185 million in prior year

SAN JOSE, Calif.—April 23, 2015—FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its second fiscal quarter ended March 31, 2015.

Second Quarter Fiscal 2015 GAAP Results
Net income for the quarter totaled $18.9 million, or $0.58 per share, versus $20.8 million, or $0.59 per share, reported in the prior year period.

Second Quarter Fiscal 2015 Non-GAAP Results
Non-GAAP Net Income for the quarter was $29.7 million vs. $28.7 million in the prior year period. Non-GAAP EPS for the quarter was $0.91 vs. $0.81 in the prior year period. Free cash flow for the quarter was $36.7 million vs. $43.9 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 2015 GAAP Revenue
The company reported revenues of $207.1 million for the quarter as compared to $185.5 million reported in the prior year period, an increase of 12%.

"We drove growth throughout all of our segments, particularly in Applications," said Will Lansing, chief executive officer. "I'm also pleased with the strong quarter in our Consumer Scores business, and encouraged by the strength we're seeing in our B2B Scores driven by new originations."

Revenues for the second quarter fiscal 2015 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 $134.4 million in the second quarter compared to $115.6 million in the prior year quarter, an increase of 16%. This was due to increased revenues in Fraud Solutions and revenues from the TONBELLER acquisition, which contributed $3.2 million in the quarter.
• 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 $49.9 million in the second quarter, up 4% from the prior year quarter. The B2B revenue decreased 2% compared to the prior year, which included a royalty true up, while the B2C revenue increased 24% from the prior year quarter. Excluding the prior year royalty true up, B2B revenues increased 7%.
• Tools revenues, which include Blaze Advisor^®, Xpress Optimization and related professional services, were $22.8 million in the second quarter compared to $22.0 million in the prior year quarter, an increase of 4%, due primarily to an increase in transactional and maintenance revenue.

Outlook
The company is reiterating its previously provided guidance for fiscal 2015, which is as follows:

The Non-GAAP financial measures are described in the financial tables captioned "Non-GAAP Results" and "Reconciliation of Non-GAAP Guidance".

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 2015 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 April 23, 2016.

The webcast will also be distributed through the Thomson StreetEvents Network to both institutional and individual investors. The webcast can be accessed 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.

FICO: Make every decision count.

For FICO news and media resources, visit www.fico.com/news.

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, 2014 and Form 10-Q for the quarter ended December 31, 2014. 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.

Q2'15 Earnings Release Financials