MINNEAPOLIS – July 25, 2012 - FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced financial results for its third fiscal quarter ended June 30, 2012.
Third Quarter Fiscal 2012 Results
Net income for the quarter totaled $20.7 million, or $0.59 per share, versus $23.2 million, or $0.58 per share, reported in the prior year period.
Third Quarter Fiscal 2012 Revenue
The company reported revenues of $160.5 million for the quarter as compared to $150.7 million reported in the prior year period, an increase of 7%.
“Our results were solid this quarter, driven by healthy revenue growth in our Applications and Tools businesses,” said Will Lansing, chief executive officer. “The strength of our core analytics solutions, in combination with B2B Scores, will continue to be the foundation of our business as we uncover and pursue new opportunities to accelerate growth. Accordingly, we feel confident increasing our guidance for fiscal 2012.”
Revenues for third quarter fiscal 2012 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 $98.3 million in the third quarter compared to $92.1 million in the prior year quarter, an increase of 7%, due primarily to increases in revenue from Customer Management solutions and Collections & Recovery 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 $41.9 million in the third quarter compared to $41.8 million in the prior year quarter. The B2B revenue increased 4% from the prior year quarter, offset by a decline in B2C.
- Tools revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $20.2 million in the third quarter compared to $16.8 million in the prior year quarter, an increase of 20%, primarily due to an increase in Blaze Advisor® and Xpress license sales during the quarter.
Bookings for the third quarter were $57.5 million compared to $50.0 million in the prior year period. 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 $166.8 million at June 30, 2012, as compared to $256.7 million at September 30, 2011. Significant changes in cash and cash equivalents from September 30, 2011, include $106.4 million of cash provided by operations, $39.6 million from the issuance of common stock from share-based payment plans, $191.1 million used for repurchases of common stock, $19.6 million used for purchases of property and equipment, $18.2 million used for an acquisition, $8.0 million repayment on senior notes, and $2.1 million of dividends paid.
The company is increasing the previously issued guidance for fiscal 2012, which follows:
New Fiscal 2012 Guidance
Old Fiscal 2012 Guidance
$650 million - $655 million
$640 million - $645 million
GAAP Net Income
$90 million - $93 million
$86 million - $89 million
GAAP Earnings Per Share
$2.50 - $2.60
$2.45 - $2.55
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 third quarter fiscal 2012 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 August 25, 2012.
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) 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. Learn more at www.fico.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, 2011 and Form 10-Q for the quarter ended March 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.
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