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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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) January 26, 2004
| FAIR ISAAC CORPORATION | ||
| (Exact name of registrant as specified in its charter) |
| Delaware | 0-16439 | 94-1499887 | ||
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| (State or other jurisdiction | (Commission | (IRS Employer | ||
| of incorporation) | File Number) | Identification No.) |
| 200 Smith Ranch Road | ||
| San Rafael, California | 94903 | |
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| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code 415-472-2211
| Item 7. Financial Statements and Exhibits. | ||||||||
| Item 12. Results of Operations and Financial Condition. | ||||||||
| SIGNATURE | ||||||||
| EXHIBIT INDEX | ||||||||
| EXHIBIT 99 | ||||||||
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Item 7. Financial Statements and Exhibits.
(c) Exhibits
| Exhibit | ||
| Number | Description | |
| 99 | Press Release dated January 26, 2004 |
Item 12. Results of Operations and Financial Condition.
On January 26, 2004, Fair Isaac Corporation (the “Company”) reported its financial results for the quarter ended December 31, 2003. See the Company’s press release dated January 26, 2004, which is furnished as Exhibit 99 hereto and incorporated by reference in this Item 12.
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SIGNATURE
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 CORPORATION | ||||
| By | /s/ KENNETH J. SAUNDERS | |||
| Kenneth J. Saunders Vice President and Chief Financial Officer |
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| Date: January 26, 2004 | ||||
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EXHIBIT INDEX
| Exhibit | ||||
| Number | Description | Method of Filing | ||
| 99 | Press Release dated January 26, 2004 | Filed Electronically |
Exhibit 99 [FAIR ISAAC LOGO] Contacts: INVESTORS & ANALYSTS: Megan Forrester Fair Isaac Corporation (800) 213-5542 investor@fairisaac.com FAIR ISAAC REPORTS FIRST QUARTER FISCAL 2004 RESULTS 15% Year-Over-Year Revenue Growth SAN RAFAEL, Calif. -- January 26, 2004 -- Fair Isaac Corporation (NYSE:FIC), the leader in customer analytics and decision technology, today announced financial results for the first fiscal quarter ended December 31, 2003. The company achieved first quarter revenues of $169.3 million in fiscal 2004 versus $146.7 million reported in the first quarter of fiscal 2003. Net income for the first quarter of fiscal 2004 totaled $28.8 million, or $0.59 per share on 49.2 million diluted shares outstanding, compared with net income of $19.8 million, or $0.38 per share on 52.2 million diluted shares outstanding reported in the same quarter last year. "This quarter our team did an excellent job of implementing and executing on a number of growth strategies we recently adopted," said Tom Grudnowski, President and CEO of Fair Isaac. "In particular, our outstanding quarterly bookings are a good indication that our new Go-To-Market strategy seems to be working. Additionally, as seen with our recently announced IBM partnership, we continue to build relationships that will help leverage our growth both domestically and internationally." The company will host a conference call today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its first quarter results and provide guidance for fiscal 2004. The call can be accessed live on the Investor Relations' section of the company's Web site at www.fairisaac.com, and will be archived on the site immediately following the call. - ----------------- ABOUT FAIR ISAAC Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com. FORWARD-LOOKING STATEMENTS Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac 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 company's ability to recruit and retain key technical and managerial personnel, 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, competition, regulatory changes applicable to the use of consumer credit and other data, the possibility that the anticipated benefits of acquisitions, including expected synergies, will not be realized and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2003. If any of these risks or uncertainties materializes, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements. Fair Isaac and FICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be trademarks of their respective owners. FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE QUARTERS ENDED DECEMBER 31, 2003 AND 2002 (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Quarter Ended December 31, ------------------------ 2003 2002 --------- -------- Revenues $ 169,341 $146,732 --------- -------- Operating expenses: Cost of revenues 59,535 60,654 Research and development 16,401 17,247 Selling, general and administrative 41,783 32,183 Amortization of intangible assets 4,067 3,262 Restructuring and merger-related (23) 2,010 --------- -------- Total operating expenses 121,763 115,356 --------- -------- Operating income 47,578 31,376 Other (expense) income, net (1,375) 802 --------- -------- Income before income taxes 46,203 32,178 Provision for income taxes 17,442 12,389 --------- -------- Net income $ 28,761 $ 19,789 ========= ======== Earnings per share: Basic $ 0.62 $ 0.39 ========= ======== Diluted $ 0.59 $ 0.38 ========= ======== Shares used in computing earnings per share: Basic 46,549 50,162 ========= ======== Diluted 49,158 52,173 ========= ======== FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2003 AND SEPTEMBER 30, 2003 (IN THOUSANDS) (UNAUDITED)
December 31, September 30, 2003 2003 ---------- ---------- ASSETS: Current assets: Cash and investments $ 515,889 $ 505,351 Receivables, net 132,158 138,712 Prepaid expenses and other current assets 21,518 23,809 ---------- ---------- Total current assets 669,565 667,872 Investments 229,511 164,254 Property and equipment, net 49,676 50,706 Goodwill and intangible assets, net 549,384 551,772 Other noncurrent assets 58,579 60,569 ---------- ---------- $1,556,715 $1,495,173 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable and other accrued liabilities $ 54,011 $ 40,939 Accrued compensation and employee benefits 22,045 25,839 Deferred revenue 37,642 31,584 ---------- ---------- Total current liabilities 113,698 98,362 Senior convertible notes 400,000 400,000 Convertible subordinated notes 141,740 141,364 Other noncurrent liabilities 5,982 5,905 ---------- ---------- Total liabilities 661,420 645,631 Stockholders' equity 895,295 849,542 ---------- ---------- $1,556,715 $1,495,173 ========== ========== FAIR ISAAC CORPORATION REVENUES BY SEGMENT FOR THE QUARTERS ENDED DECEMBER 31, 2003 AND 2002 (IN THOUSANDS) (UNAUDITED)
Quarter Ended December 31, ---------------------- 2003 2002 -------- -------- Scoring solutions $ 35,307 $ 34,168 Strategy machine solutions 103,261 85,367 Professional services 22,492 20,265 Analytic software tools 8,281 6,932 -------- -------- Total revenues $169,341 $146,732 ======== ========