FICO Announces Earnings of $1.00 per Share for Fourth Quarter Fiscal 2016
SAN JOSE, Calif. – November 7, 2016 - FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its fourth fiscal quarter ended September 30, 2016.
Fourth Quarter Fiscal 2016 GAAP Results
Net income for the quarter totaled $32.1 million, or $1.00 per share, versus $33.3 million, or $1.03 per share, reported in the prior year period.
The current quarter earnings include a reduction to income tax expense of $3.3 million, or $0.10 per share, associated with one-time foreign tax credits. The prior year quarter earnings included a restructuring charge, net of tax of $11.5 million, or $0.35 per share, primarily related to the write-down of facilities, and a reduction to income tax expense of $5.4 million, or $0.17 per share, associated with the favorable resolution of a tax audit.
Net cash provided by operating activities for the quarter was $23.6 million versus $46.6 million in the prior year period.
Fourth Quarter Fiscal 2016 Non-GAAP Results
Non-GAAP Net Income for the quarter was $41.4 million vs. $50.9 million in the prior year period. Non-GAAP EPS for the quarter was $1.28 vs. $1.57 in the prior year period. Free cash flow for the quarter was $13.6 million vs. $39.2 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.
Fourth Quarter Fiscal 2016 GAAP Revenue
The company reported revenues of $235.8 million for the quarter as compared to $232.8 million reported in the prior year period.
“We had a strong finish to our fiscal 2016,” said Will Lansing, chief executive officer. “We drove continued growth in our Scores segment, and are seeing increased demand for our new decision management products.”
Revenues for the fourth quarter of fiscal 2016 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 $149.0 million in the fourth quarter, flat with the prior year.
- Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and business-to-consumer (B2C) service, were $62.8 million in the fourth quarter, compared to $57.4 million in the prior year quarter, an increase of 9%. B2B revenue increased 13% and B2C revenue increased 4% from the prior year quarter.
- Decision Management Software revenues, which include FICO® Blaze Advisor®, FICO® Xpress Optimization and related professional services, were $24.0 million in the fourth quarter compared to $26.1 million in the prior year quarter, a decrease of 8%, due primarily to decreased upfront license sales of Xpress Optimization.
The company is providing guidance for fiscal 2017 of approximately:
|Fiscal 2017 Guidance|
|GAAP Net Income||$109 million|
|GAAP Earnings Per Share||$3.39|
|Non-GAAP Net Income||$158 million|
|Non-GAAP Earnings Per Share||$4.92|
The company is planning to early-adopt FASB Accounting Standards Update No. 2016-09 (“ASU 2016-09”) in the first quarter of its fiscal 2017 (the quarter ending December 31, 2016). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under ASU 2016-09, excess tax benefits or deficiencies generated upon the settlement or exercise of stock awards are no longer recognized as additional paid-in capital but are instead recognized as a reduction or increase to income tax expense. ASU 2016-09 is expected to have an impact on the recording of excess tax benefits and deficiencies in the company’s consolidated balance sheets and consolidated statements of income and comprehensive income, as well as its operating and financing cash flows on its consolidated statements of cash flows. Those possible impacts are not reflected in the fiscal 2017 guidance.
The Non-GAAP financial measures are described in the financial table captioned “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 fourth quarter fiscal 2016 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 November 7, 2017.
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).
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 170 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Learn more at http://www.fico.com.
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FICO and Blaze Advisor are registered trademarks of Fair Isaac Corporation in the U.S. and other countries.
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, 2015 and Form 10-Q for the quarter ended June 30, 2016. 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.
Q4 2016 Earnings Release Financials
Porter Novelli for FICO
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