Skip to main content
FICO Announces Earnings of $1.08 per Share for Third Quarter Fiscal 2016

July 28, 2016

FICO Announces Earnings of $1.08 per Share for Third Quarter Fiscal 2016

Investor / Financial Information July 28, 2016

SAN JOSE, Calif. – July 28, 2016 - FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its third fiscal quarter ended June 30, 2016.

Third Quarter Fiscal 2016 GAAP Results
Net income for the quarter totaled $35.0 million, or $1.08 per share, versus $19.9 million, or $0.62 per share, reported in the prior year period.

Third Quarter Fiscal 2016 Non-GAAP Results
Non-GAAP Net Income for the quarter was $46.8 million vs. $32.3 million in the prior year period. Non-GAAP EPS for the quarter was $1.45 vs. $1.00 in the prior year period. Free cash flow for the quarter was $77.9 million vs. $34.5 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.

Third Quarter Fiscal 2016 GAAP Revenue 
The company reported revenues of $238.8 million for the quarter as compared to $209.4 million reported in the prior year period. 

“In our third fiscal quarter, we had a strong quarter across the board, with growth in all of our segments,” said Will Lansing, chief executive officer. “The strategic initiatives we’ve been pursuing are continuing to bear fruit, and we’re leveraging that into accelerated cash flow and earnings.”

Revenues for the third 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 $141.6 million in the third quarter compared to $127.1 million in the prior year quarter, an increase of 11%. This was due to increased license sales in Fraud Management Solutions, increased transactional volumes in Customer Communications Services, and increased license and services revenues in Origination Solutions compared to 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 $61.1 million in the third quarter, compared to $55.8 million in the prior year quarter, an increase of 10%. B2B revenue increased 11% and B2C revenue increased 7% from the prior year quarter.
  • Tools revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $36.1 million in the third quarter compared to $26.5 million in the prior year quarter, an increase of 36%, due primarily to increased license sales of Blaze Advisor® and FICO® Decision Management Platform.

Outlook
The company is updating its previously provided guidance for fiscal 2016, as follows:

 

New Fiscal 2016
Guidance

Previous Fiscal 2016
Guidance

 Revenue

$860 million - $870 million

$860 million - $870 million

 GAAP Net Income

 $98 million -  $102 million

$94 million - $98 million

 GAAP Earnings Per Share

$3.03 - $3.15

$2.89 - $3.02

 Non-GAAP Net Income

$145 million - $149 million

$144 million - $148 million

 Non-GAAP Earnings Per Share

$4.50 - $4.62

$4.43 - $4.55

The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance”.

New Stock Repurchase Program
The company also announced that its Board of Directors has approved a new stock repurchase program to acquire up to $250 million of the company’s outstanding common stock. This new program was approved following completion of FICO’s previous stock repurchase program, which was in effect from August 2014 through July 2016.

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 third 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 July 28, 2017.

About FICO
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 165 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

Join the conversation at https://twitter.com/fico & http://www.fico.com/en/blogs/

FICO is a registered trademark of Fair Isaac Corporation in the US 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 March 31, 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.

Q3 2016 Earnings Release Financials

 

Media Contact:
Jeffrey Scott
(408) 348-3651
jscott@iq360inc.com

Investor/Analysts Contact:
Steven Weber
FICO
(800) 213-5542
investor@fico.com

Newsroom Contacts

Greg Jawski
Americas

greg.jawski@porternovelli.com
+1 212-601-8248

Darcy Sullivan
Europe, Middle East & Africa

dsullivan@fico.com
+44 (0) 209-940-8719

Saxon Shirley
Asia Pacific

saxonshirley@fico.com
+65 6422-7795

Marisa Arribas
Latin America

marisaarribas@fico.com
+1 786 482 7231

Camila Placa
Brasil

camilaplaca@fico.com
+55 11 5189-8258