FICO Announces Earnings of $0.65 per Share for First Quarter Fiscal 2013

   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, investor@fico.com or
Media, Steve Astle, +1-415-446-6204, stephenastle@fico.com