SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13
OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported): OCTOBER 28, 1999
Commission File Number
0-16439
FAIR, ISAAC AND COMPANY, INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE 94-1499887
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
111 Smith Ranch Road, San Rafael, California 94903
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 472-2211
ITEM 5. Other Events
On October 28, 1999, the Registrant issued the press release attached
hereto as Exhibit 99.1 and incorporated herein by reference.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release of the Registrant dated October 28, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FAIR, ISAAC AND COMPANY, INCORPORATED
DATE: October 29, 1999
By: PETER L. MCCORKELL
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Peter L. McCorkell
Senior Vice President, Secretary
and General Counsel
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Exhibit Index
To Fair, Isaac and Company, Incorporated
Report on Form 8-K dated October 28, 1999
Sequentially
Exhibit No. Exhibit Numbered Page
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99.1 Press Release dated October 28, 1999. 4
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Contact: Peter L. McCorkell (415) 491-5101
Fair, Isaac to Exit Healthcare Receivables Management Business
SAN RAFAEL, CALIFORNIA--October 28, 1999-- Fair, Isaac and Company, Incorporated
(NYSE: FIC) today announced that it is discontinuing its Healthcare Receivables
Management System ("HRMS") line. HRMS revenues in the fiscal year ended
September 30, 1999, were about $1.4 million. The Company will set aside a
reserve in the quarter that ends December 31, 1999, to cover charges related to
termination of HRMS. The exact amount of that reserve has not yet been
determined but is currently expected to be in the range of $3.0 to 4.0 million.
Because there would be a reduction in ongoing operating expenses, discontinuance
of HRMS is not expected to have a significant effect on fiscal 2000 earnings.
Tom Grudnowski, newly appointed president and CEO of Fair, Isaac, said, "We
continue to believe our Healthcare Receivables Management System could provide
excellent value for hospitals in reducing collection costs and charge-offs, and
early results from our first client bear that out. However, in the past year we
have generated only minimal sales and revenues from this product. This
disappointing market acceptance and the prospect of continuing losses in fiscal
2000 led us to the conclusion that we should redirect our resources to other,
more promising opportunities. We will, of course, ensure that our contractual
commitments to our existing HRMS clients are satisfied."
Fair, Isaac helps companies make faster, more profitable decisions about
marketing, customers, operations and portfolios. Widely recognized for its
pioneering work in predictive technology, the company provides advanced
decision-making solutions to the financial services, eBusiness, retail,
telecommunications and healthcare industries. Headquartered in San Rafael,
Calif., Fair, Isaac employs 1600 people in 18 offices worldwide. The company
today reported net income of $29.98 million ($2.09 per share, diluted) on
revenues of $276.9 million for the fiscal year ended September 30, 1999. For
more information visit www.fairisaac.com.
This press release contains certain forward-looking statements regarding events
and trends that may affect the Company's future results. Such statements are
subject to risks and uncertainties that could cause the Company's actual results
to differ materially. Such factors include, but are not limited to, the
Company's ability to recruit and maintain key technical and managerial
personnel, the maintenance of its existing relationships with key alliance
partners, its ability to continue to develop new and enhanced products and
services, competition, and market demand. For a more complete description of
these and other factors see the Company's annual and quarterly reports to
stockholders and its annual report on Form 10-K and other reports filed with the
Securities and Exchange Commission.
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