FICO Announces Earnings of $0.65 per Share for First Quarter Fiscal 2013 Revenue of $190 million vs. $170 million in prior year PR Newswire SAN JOSE, Calif., Jan. 30, 2013 SAN JOSE, Calif., Jan. 30, 2013 /PRNewswire/ -- FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced financial results for its first fiscal quarter ended December 31, 2012. (Logo: http://photos.prnewswire.com/prnh/20111010/CG83314LOGO) First Quarter Fiscal 2013 GAAP Results Net income for the quarter totaled $23.4 million, or $0.65 per share, versus $30.0 million, or $0.81 per share, reported in the prior year period. The current quarter results include $2.2 million, net of tax, or $0.06 per share, in restructuring and acquisition related costs. First Quarter Fiscal 2013 Non-GAAP Results Beginning in fiscal 2013, the company will report Non-GAAP results for net income, EPS and free cash flow. 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. oNon-GAAP Net Income for the quarter was $31.8 million vs. $34.5 million in the prior year period. oNon-GAAP EPS for the quarter was $0.88 vs. $0.94 in the prior year period. oFree cash flow for the quarter was $19.0 million vs. $32.7 million in the prior year period. First Quarter Fiscal 2013 GAAP Revenue The company reported revenues of $190.0 million for the quarter as compared to $170.3 million reported in the prior year period, an increase of 12%. "We had a strong start to fiscal 2013, with solid Q1 results driven by revenue growth across our entire portfolio," said Will Lansing, chief executive officer. "The investments we have made during the past nine months, including our acquisitions, are delivering results in line with our plans." Revenues for the first quarter fiscal 2013 across each of the company's three operating segments were as follows: oApplications revenues, which include the company's preconfigured Decision Management applications and associated professional services, were $124.7 million in the first quarter compared to $110.2 million in the prior year quarter, an increase of 13%. This was due primarily to revenue associated with last year's acquisition of Adeptra, Ltd. and increases in revenue from Customer Management and Marketing Solutions, partially offset by a decrease in Fraud Solutions. oScores 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 $43.4 million in the first quarter compared to $42.5 million in the prior year quarter, an increase of 2%. oTools revenues, which include Blaze Advisor^®, Xpress Optimization and related professional services, were $21.9 million in the first quarter compared to $17.6 million in the prior year quarter, an increase of 24%, primarily due to an increase in Blaze license and professional services partially offset by a decrease in Xpress license sales during the quarter. Outlook As a result of the recently announced acquisition of CR Software LLC, the company is increasing the previously issued revenue guidance for fiscal 2013, as follows: New Fiscal 2013 GAAP Previous Fiscal 2013 Guidance GAAP Guidance Revenue $760 million - $770 $740 million - $750 million million GAAP Net Income $100 million $100 million GAAP Earnings Per Share $2.80 $2.80 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 2013 results and provide various strategic and operational updates. The call can be accessed at FICO's Web site at www.FICO.com(follow the instructions on the Investor Relations page). A replay of the webcast will be available through February 28, 2013. 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). 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, 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. -Financial tables follow- FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2012 and September 30, 2012 (In thousands) (Unaudited) December 31, September 30, 2012 2012 ASSETS: Current assets: Cash and cash equivalents $ $ 90,839 71,609 Marketable securities - 22,008 Accounts receivable, net 138,159 142,595 Prepaid expenses and other current 22,376 23,113 assets Total current assets 251,374 259,325 Marketable securities and investments 16,529 16,500 Property and equipment, net 45,788 41,080 Goodwill and intangible assets, net 835,263 809,803 Other assets 27,160 31,903 $ $ 1,176,114 1,158,611 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable and other accrued $ $ liabilities 62,378 62,603 Accrued compensation and employee 30,170 50,043 benefits Deferred revenue 47,455 47,959 Current maturities on long-term debt 49,000 49,000 Total current liabilities 189,003 209,605 Senior notes 455,000 455,000 Other liabilities 23,383 19,600 Total liabilities 667,386 684,205 Stockholders' equity 508,728 474,406 $ $ 1,176,114 1,158,611 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME For the Quarters Ended December 31, 2012 and 2011 (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2012 2011 Revenues: Transactional and maintenance 129,898 114,183 Professional services 32,337 28,693 License 27,785 27,473 Total revenues 190,020 170,349 Operating expenses: Cost of revenues 56,148 45,974 Research & development 14,552 13,049 Selling, general and administrative 69,665 57,324 Amortization of intangible assets 3,372 1,930 Restructuring and acquisition-related 3,289 - 147,026 118,277 Operating income 42,994 52,072 Other expense, net (7,951) (8,447) Income from operations before income taxes 35,043 43,625 Provision for income taxes 11,622 13,628 Net income 23,421 29,997 Basic earnings per share: 0.67 0.83 Diluted earnings per share: 0.65 0.81 Shares used in computing earnings per share: Basic 35,043 36,034 Diluted 36,151 36,887 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Quarters Ended December 31, 2012 and 2011 (In thousands) (Unaudited) Quarter Ended December 31, 2012 2011 Cash flows from operating activities: Net income $ $ 23,421 29,997 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7,973 5,528 Share-based compensation 5,832 4,757 Changes in operating assets and (5,492) 670 liabilities Other, net (3,005) 197 Net cash provided by operating 28,729 41,149 activities Cash flows from investing activities: Purchases of property and equipment (9,012) (7,757) Net activity from marketable securities 22,000 49,473 Cash paid for acquisitions, net of cash (27,605) - acquired Other, net 50 - Net cash provided by (used in) (14,567) 41,716 investing activities Cash flows from financing activities: Proceeds from issuances of common stock 6,189 15,023 Repurchases of common stock - (57,685) Other, net (695) 954 Net cash provided by (used in) 5,494 (41,708) financing activities Effect of exchange rate changes on cash (426) (1,534) Increase in cash and cash equivalents 19,230 39,623 Cash and cash equivalents, beginning of 71,609 135,752 period Cash and cash equivalents, end of period $ $ 90,839 175,375 FAIR ISAAC CORPORATION REVENUE BY SEGMENT For the Quarters Ended December 31, 2012 and 2011 (In thousands) (Unaudited) Quarter Ended December 31, 2012 2011 Applications revenues: Transactional and maintenance $ 79,625 $ 64,272 Professional services 26,159 24,327 License 18,923 21,617 Total applications revenues $ 124,707 $ 110,216 Scores revenues: Transactional and maintenance $ 42,437 $ 42,197 Professional services 903 288 License 107 57 Total scores revenues $ 43,447 $ 42,542 Tools revenues: Transactional and maintenance $ 7,836 $ 7,714 Professional services 5,275 4,078 License 8,755 5,799 Total tools revenues $ 21,866 $ 17,591 Total revenues: Transactional and maintenance $ 129,898 $ 114,183 Professional services 32,337 28,693 License 27,785 27,473 Total revenues $ 190,020 $ 170,349 FAIR ISAAC CORPORATION NON-GAAP RESULTS For the Quarters Ended December 31, 2012 and 2011 (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2012 2011 GAAP net income $ 23,421 $ 29,997 Amortization of intangible assets (net of 2,265 1,308 tax) Restructuring and acquisition-related (net 2,209 - of tax) Stock-based compensation expense (net of 3,917 3,224 tax) Non-GAAP net income $ 31,812 $ 34,529 GAAP diluted earnings per share $ 0.65 $ 0.81 Amortization of intangible assets (net of 0.06 0.04 tax) Restructuring and acquisition-related (net 0.06 - of tax) Stock-based compensation expense (net of 0.11 0.09 tax) Non-GAAP diluted earnings per share $ 0.88 $ 0.94 Free cash flow Net cash provided by operating activities $ 28,729 $ 41,149 Capital expenditures (9,012) (7,757) Dividends paid (702) (717) Free cash flow $ 19,015 $ 32,675 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, and restructuring and acquisition-related 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. SOURCE FICO Website: http://www.fico.com Contact: Investors/Analysts, Steve Weber, 1-800-213-5542, email@example.com or Media, Steve Astle, +1-415-446-6204, firstname.lastname@example.org
FICO Announces Earnings of $0.65 per Share for First Quarter Fiscal 2013
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