FAIR ISAAC CORPORATION SAN JOSE, Calif., Jan. 28, 2016 /PRNewswire/ -- FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its first fiscal quarter ended December 31, 2015.
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First Quarter Fiscal 2016 GAAP Results
Net income for the quarter totaled $19.2 million, or $0.59 per share, versus $14.4 million, or $0.43 per share, reported in the prior year period.
First Quarter Fiscal 2016 Non-GAAP Results
Non-GAAP net income for the quarter was $32.1 million vs. $22.6 million in the prior year period. Non-GAAP EPS for the quarter was $0.99 vs. $0.68 in the prior year period. Free cash flow for the quarter was $35.6 million vs. negative $4.9 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.
First Quarter Fiscal 2016 GAAP Revenue
The company reported revenues of $200.1 million for the quarter as compared to $189.5 million reported in the prior year period, an increase of 6%.
"We're off to a good start in 2016, as we continue to deliver both top- and bottom-line growth," said Will Lansing, chief executive officer. "Our Scores segment is performing particularly well, as we're seeing increased demand on both the B2B and B2C markets."
Revenues for the first quarter 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 $120.1 million in the first quarter compared to $115.5 million in
the prior year quarter, an increase of 4%. This was due primarily to
revenues from our compliance solutions attributed to the TONBELLER
acquisition.
-- Scores revenues, which include the company's business-to-business (B2B)
scoring solutions and associated professional services, and the
business-to-consumer (B2C) services, were $56.0 million in the first
quarter, up 27% from the prior year quarter. The B2B revenue increased
8% while the B2C revenue increased 88% from the prior year quarter.
-- Tools revenues, which include Blaze Advisor(®), Xpress Optimization and
related professional services, were $23.9 million in the first quarter
compared to $30.1 million in the prior year quarter, a decrease of 21%,
due primarily to a one-time favorable settlement in the prior year
related to our Blaze product for under-reported royalties.
Outlook
The company is reiterating its previously provided guidance for fiscal 2016, which is as follows:
Fiscal 2016 Guidance
--------------------
Revenue $860 million - $870 million
------- ---------------------------
GAAP Net Income $94 million - $98 million
--------------- -------------------------
GAAP Earnings Per Share $2.89 - $3.02
----------------------- -------------
Non-GAAP Net Income $144 million - $148 million
------------------- ---------------------------
Non-GAAP Earnings Per
Share $4.43 - $4.55
--------------------- -------------
The non-GAAP financial measures are described in the financial table captioned "Non-GAAP Guidance" and are reconciled to the corresponding GAAP financial measures at the end of this release.
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 first 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 January 28, 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).
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. 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, 2015 and Form 10-Q for the quarter ended December 31, 2015. 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.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, September 30,
2015 2015
---- ----
ASSETS:
Current assets:
Cash and cash equivalents $90,710 $86,120
Accounts receivable, net 139,078 158,773
Prepaid expenses and other
current assets 57,757 41,709
Total current assets 287,545 286,602
------- -------
Marketable securities and
investments 20,620 20,525
Property and equipment, net 38,422 38,208
Goodwill and intangible
assets, net 853,081 862,071
Other assets 15,582 22,757
$1,215,250 $1,230,163
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and other
accrued liabilities $50,365 $50,810
Accrued compensation and
employee benefits 37,837 54,368
Deferred revenue 51,888 46,697
Current maturities on debt 103,000 92,000
Total current liabilities 243,090 243,875
------- -------
Long-term debt 516,000 516,000
Other liabilities 33,992 33,290
Total liabilities 793,082 793,165
------- -------
Stockholders' equity 422,168 436,998
$1,215,250 $1,230,163
========== ==========
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Quarter Ended
December 31,
------------
2015 2014
---- ----
Revenues:
Transactional and
maintenance $147,072 $131,410
Professional services 34,152 35,198
License 18,852 22,942
------ ------
Total revenues 200,076 189,550
------- -------
Operating expenses:
Cost of revenues 62,193 66,300
Research & development 24,631 22,637
Selling, general and
administrative 78,838 72,801
Amortization of intangible
assets 3,580 2,932
169,242 164,670
------- -------
Operating income 30,834 24,880
Other expense, net (7,058) (6,556)
Income before income taxes 23,776 18,324
Provision for income taxes 4,535 3,917
----- -----
Net income $19,241 $14,407
======= =======
Basic earnings per share: $0.62 $0.45
===== =====
Diluted earnings per share: $0.59 $0.43
===== =====
Shares used in computing earnings per share:
Basic 31,185 31,936
====== ======
Diluted 32,436 33,128
====== ======
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Quarter Ended
December 31,
------------
2015 2014
---- ----
Cash flows from operating activities:
Net income $19,241 $14,407
Adjustments to reconcile net income to net cash provided
by
operating activities:
Depreciation
and
amortization 7,441 8,107
Share-
based
compensation 14,700 8,794
Changes in
operating
assets and
liabilities (6,792) (35,518)
Other, net 5,960 5,570
Net cash
provided
by
operating
activities 40,550 1,360
------ -----
Cash flows from investing activities:
Purchases
of
property
and
equipment (4,294) (5,667)
Other, net - 75
Net cash
used in
investing
activities (4,294) (5,592)
------ ------
Cash flows from financing activities:
Proceeds
from
revolving
line of
credit 26,000 81,000
Payments on
revolving
line of
credit (15,000) (20,000)
Proceeds
from
issuances
of common
stock 1,199 6,713
Taxes paid
related to
net share
settlement
of equity
awards (24,462) (15,007)
Repurchases
of common
stock (28,382) (60,593)
Other, net 9,457 5,850
Net cash
used in
financing
activities (31,188) (2,037)
------- ------
Effect of
exchange
rate
changes on
cash (478) (4,155)
---- ------
Increase
(decrease)
in cash
and cash
equivalents 4,590 (10,424)
Cash and
cash
equivalents,
beginning
of period 86,120 105,075
Cash and
cash
equivalents,
end of
period $90,710 $94,651
======= =======
FAIR ISAAC CORPORATION
REVENUE BY SEGMENT
(In thousands)
(Unaudited)
Quarter Ended
December 31,
------------
2015 2014
---- ----
Applications revenues:
Transactional and maintenance $80,983 $78,551
Professional services 27,126 28,499
License 12,032 8,448
Total applications revenues $120,141 $115,498
======== ========
Scores revenues:
Transactional and maintenance $55,217 $42,937
Professional services 748 788
License 37 216
Total scores revenues $56,002 $43,941
======= =======
Tools revenues:
Transactional and maintenance $10,872 $9,922
Professional services 6,278 5,911
License 6,783 14,278
Total tools revenues $23,933 $30,111
======= =======
Total revenues:
Transactional and maintenance $147,072 $131,410
Professional services 34,152 35,198
License 18,852 22,942
Total revenues $200,076 $189,550
======== ========
FAIR ISAAC CORPORATION
NON-GAAP RESULTS
(In thousands, except per share data)
(Unaudited)
Quarter Ended
December 31,
------------
2015 2014
---- ----
GAAP net income $19,241 $14,407
Amortization of
intangible assets
(net of tax) 2,520 2,050
Stock-based
compensation expense
(net of tax) 10,346 6,149
Non-GAAP net income $32,107 $22,606
------- -------
GAAP diluted earnings
per share $0.59 $0.43
Amortization of
intangible assets
(net of tax) 0.08 0.06
Stock-based
compensation expense
(net of tax) 0.32 0.19
Non-GAAP diluted
earnings per share $0.99 $0.68
----- -----
Free cash flow
Net cash provided by
operating activities $40,550 $1,360
Capital expenditures (4,294) (5,667)
Dividends paid (622) (635)
---- ----
Free cash flow $35,634 $(4,942)
------- -------
Note: The numbers may not sum to total due to rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP
financial statements, the company uses the
following non-GAAP financial measures:
non-GAAP net income, non-GAAP EPS, and
free cash flow. Non-GAAP net income and
non-GAAP EPS exclude the impact of
amortization expense, share-based
compensation expense, restructuring and
acquisition-related, and adjustment to tax
valuation allowance items. Free cash flow
excludes capital expenditures and dividends
paid. The presentation of these financial
measures is not intended to be considered
in isolation or as a substitute for, or
superior to, the financial information
prepared and presented in accordance with
GAAP.
Management uses these non-GAAP financial
measures for financial and operational
decision-making and as a means to evaluate
period-to-period comparisons. Our
management believes these non-GAAP
financial measures provide meaningful
supplemental information regarding our
performance and liquidity by excluding
certain items that may not be indicative of
recurring business results including
significant non-cash expenses. We believe
management and investors benefit from
referring to these non-GAAP financial
measures in assessing our performance when
planning, forecasting and analyzing future
periods. These non-GAAP financial
measures also facilitate management's
internal comparisons to historical
performance and liquidity as well as
comparisons to our competitors' operating
results. We believe these non-GAAP
financial measures are useful to investors
because they allow for greater transparency
with respect to key measures used by
management in its financial and operating
decision-making.
FAIR ISAAC CORPORATION
RECONCILIATION OF NON-GAAP GUIDANCE
(In millions, except per share data)
(Unaudited)
Low High
--- ----
GAAP
net
income $94 $98
Amortization
of
intangible
assets
(net
of
tax) 10 10
Stock-
based
compensation
expense
(net
of
tax) 40 40
Non-
GAAP
net
income $144 $148
==== ====
GAAP
diluted
earnings
per
share $2.89 $3.02
Amortization
of
intangible
assets
(net
of
tax) 0.31 0.31
Stock-
based
compensation
expense
(net
of
tax) 1.23 1.23
Non-
GAAP
diluted
earnings
per
share $4.43 $4.55
===== =====
Note: The numbers may not sum to total due to
rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP financial
statements, the company uses the following non-GAAP
financial measures: non-GAAP net income, non-GAAP
EPS, and free cash flow. Non-GAAP net income and
non-GAAP EPS exclude the impact of amortization
expense, share-based compensation expense,
restructuring and acquisition-related, and
adjustment to tax valuation allowance items. Free
cash flow excludes capital expenditures and
dividends paid. The presentation of these financial
measures is not intended to be considered in
isolation or as a substitute for, or superior to,
the financial information prepared and presented in
accordance with GAAP.
Management uses these non-GAAP financial measures
for financial and operational decision-making and
as a means to evaluate period-to-period
comparisons. Our management believes these non-
GAAP financial measures provide meaningful
supplemental information regarding our performance
and liquidity by excluding certain items that may
not be indicative of recurring business results
including significant non-cash expenses. We
believe management and investors benefit from
referring to these non-GAAP financial measures in
assessing our performance when planning, forecasting
and analyzing future periods. These non-GAAP
financial measures also facilitate management's
internal comparisons to historical performance and
liquidity as well as comparisons to our competitors'
operating results. We believe these non-GAAP
financial measures are useful to investors because
they allow for greater transparency with respect to
key measures used by management in its financial and
operating decision-making.
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SOURCE FICO
