UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 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 27, 2010 |
FAIR
ISAAC CORPORATION
(Exact
name of registrant as specified in its charter)
|
Delaware |
1-11689 |
94-1499887 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
901 Marquette Avenue, Suite 3200 Minneapolis, Minnesota |
55402-3232 |
|
(Address of principal executive offices) |
(Zip Code) |
|
Registrant’s telephone number, including area code |
612-758-5200 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
| Item 2.02. Results of Operations and Financial Condition. |
| Item 9.01. Financial Statements and Exhibits. |
| Signature |
| Exhibit Index |
| Exhibit 99.1 |
|
Item 2.02. |
Results of Operations and Financial Condition. |
On January 27, 2010, Fair Isaac Corporation (the “Company”) reported its financial results for the quarter ended December 31, 2009. See the Company’s press release dated January 27, 2010, which is furnished as Exhibit 99.1 hereto and incorporated by reference in this Item 2.02.
|
Item 9.01. |
Financial Statements and Exhibits. |
|
| (d) | Exhibits. | |
|
Exhibit |
Description |
| 99.1 | Press Release dated January 27, 2010 |
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 hereunto duly authorized.
|
FAIR ISAAC CORPORATION |
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By: |
/s/ THOMAS A. BRADLEY |
|
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Thomas A. Bradley |
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Executive Vice President and Chief Financial Officer |
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Date: |
January 27, 2010 |
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EXHIBIT INDEX
|
Exhibit No. |
Description |
Manner of Filing |
||
|
99.1 |
Press Release dated January 27, 2010 |
Filed Electronically |
Exhibit 99.1
FICO Announces Earnings of $0.37 per Share for First Quarter 2010
Bookings for first quarter of $60 million, up 14 percent from prior year
MINNEAPOLIS--(BUSINESS WIRE)--January 27, 2010--FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced financial results for its first fiscal quarter ended December 31, 2009.
First Quarter Fiscal 2010 Results
Net income for the first quarter of fiscal 2010 totaled $17.7 million, or $0.37 per share. This compares with prior-year period net income of $12.1 million, or $0.25 per share, a figure that was reduced by $0.12 per share due to restructuring costs.
“We continue to see signs of improvement in the marketplace, including a stabilization of our recurring revenue and continued strength in bookings,” said Mark Greene, chief executive officer. “These conditions reinforce our confidence that we’ve got the right strategy to put the company on the path to growth.”
First Quarter Fiscal 2010 Revenue
The company reported first quarter revenues of $151.5 million in fiscal 2010 versus $163.5 million reported in the prior year period. The prior year period included $5.4 million in revenue associated with the divested telecom product lines.
Effective October 1, 2009, the company implemented an organizational restructuring that consolidated the operating segment structure from four segments to three, in which the myFICO® business-to-consumer (B2C) service is now a component of the Scores segment and the Professional Services segment has been combined with the applicable segment to which the services relate. Fiscal 2009 revenues have been restated to reflect the new business structure.
Revenues for first quarter fiscal 2010 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 $92.9 million in the first quarter compared to $95.0 million in the prior year quarter, a decrease of 2%, primarily due to the divestiture of the telecom product lines. Excluding these divested products, revenue increased by $3.3 million or 4%, primarily due to an increase in revenue from Retail Action Manager, a component of Marketing Solutions.
- Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and the B2C service, were $41.5 million in the first quarter compared to $47.6 million in the prior year quarter, a decrease of 13%, primarily due to declining volumes in the B2C service and a decrease in revenues derived from credit bureau risk scores.
- Tools revenues, which include Blaze Advisor® and Xpress Optimization, and related professional services, decreased to $17.1 million in the first quarter compared to $20.9 million in the prior year quarter, a decrease of 18%, primarily due to decreased sales of the Blaze Advisor® product.
Bookings
Bookings for the first quarter were $59.9 million compared to $52.5 million in the same period last year. The company defines a “new booking” as estimated future contractual revenues, including agreements with perpetual, multi-year and annual terms. Management regards new bookings as one indicator of future revenues, but they are not comparable to, nor should they be substituted for, an analysis of the company’s revenues.
Balance Sheet and Cash Flow
Cash and cash equivalents, and investments were $382.5 million at December 31, 2009, as compared to $390.3 million at September 30, 2009. Significant changes in cash and cash equivalents from September 30, 2009, include $31.3 million of cash provided by operations, $33.4 million of cash used to repurchase common stock, $4.5 million related to purchase of property and equipment and $0.9 million of dividends paid.
Outlook
The company reiterates the previously issued guidance of year-over-year GAAP earnings per share growth by a high single-digit percentage in fiscal 2010 compared to fiscal 2009.
Company to Host Conference Call
The company will host a webcast today at 5:00 p.m. Eastern Time (4:00 p.m. Central Time/2:00 p.m. Pacific Time) to report its first quarter fiscal 2010 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 27, 2010.
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; www.FICO.com) is the leader in decision management, transforming business by making every decision count. FICO combines trusted advice, world-class analytics, and innovative applications to help businesses automate, improve, and connect decisions over customer lifecycles and across the enterprise. Clients in 80 countries work with FICO to increase customer loyalty and profitability, reduce fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of individuals manage their credit health through its consumer website, www.myFICO.com.
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, 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, 2009. 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 service, and Blaze Advisor are all trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.
| FAIR ISAAC CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| For the Quarters Ended December 31, 2009 and 2008 | ||||||||
| (In thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| December 31, | ||||||||
| 2009 | 2008 | |||||||
| Revenues: | ||||||||
| Transactional and maintenance | $ | 115,106 | $ | 123,054 | ||||
| Professional services | 26,237 | 28,397 | ||||||
| License | 10,153 | 12,009 | ||||||
| Total revenues | 151,496 | 163,460 | ||||||
| Operating expenses: | ||||||||
| Cost of revenues | 42,519 | 59,019 | ||||||
| Research and development | 18,976 | 18,121 | ||||||
| Selling, general and administrative | 55,203 | 54,769 | ||||||
| Amortization of intangible assets | 3,165 | 3,247 | ||||||
| Restructuring | - | 8,078 | ||||||
| Total operating expenses | 119,863 | 143,234 | ||||||
| Operating income | 31,633 | 20,226 | ||||||
| Other expense, net | (5,250 | ) | (4,057 | ) | ||||
| Income from operations before income taxes | 26,383 | 16,169 | ||||||
| Provision for income taxes | 8,697 | 4,059 | ||||||
| Net income | $ | 17,686 | $ | 12,110 | ||||
| Basic earnings per share | $ | 0.37 | $ | 0.25 | ||||
| Diluted earnings per share | $ | 0.37 | $ | 0.25 | ||||
| Shares used in computing earnings per share: | ||||||||
| Basic | 47,606 | 48,478 | ||||||
| Diluted | 47,915 | 48,522 | ||||||
| FAIR ISAAC CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| December 31, 2009 and September 30, 2009 | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| December 31, | September 30, | |||||
| 2009 | 2009 | |||||
| ASSETS: | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 206,207 | $ | 178,157 | ||
| Marketable securities | 131,051 | 139,673 | ||||
| Accounts receivable, net | 98,407 | 101,742 | ||||
| Prepaid expenses and other current assets | 23,794 | 22,986 | ||||
| Total current assets | 459,459 | 442,558 | ||||
| Marketable securities and investments | 45,222 | 72,445 | ||||
| Property and equipment, net | 33,701 | 34,340 | ||||
| Goodwill and intangible assets, net | 703,652 | 705,895 | ||||
| Other assets | 46,540 | 48,650 | ||||
| $ | 1,288,574 | $ | 1,303,888 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 49,563 | $ | 46,776 | ||
| Accrued compensation and employee benefits | 21,019 | 28,139 | ||||
| Deferred revenue | 43,301 | 39,673 | ||||
| Total current liabilities | 113,883 | 114,588 | ||||
| Revolving line of credit | 295,000 | 295,000 | ||||
| Senior notes | 275,000 | 275,000 | ||||
| Other liabilities | 18,116 | 19,031 | ||||
| Total liabilities | 701,999 | 703,619 | ||||
| Stockholders’ equity | 586,575 | 600,269 | ||||
| $ | 1,288,574 | $ | 1,303,888 | |||
| FAIR ISAAC CORPORATION | ||||||
| REVENUE BY SEGMENT | ||||||
| For the Quarters Ended December 31, 2009 and 2008 | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| Quarter Ended | ||||||
| December 31, | ||||||
| 2009 | 2008 | |||||
| Applications revenues: | ||||||
| Transactional and maintenance | $ | 66,734 | $ | 68,959 | ||
| Professional services | 21,462 | 21,254 | ||||
| License | 4,676 | 4,732 | ||||
| Total applications revenues | $ | 92,872 | $ | 94,945 | ||
| Scores revenues: | ||||||
| Transactional and maintenance | $ | 41,143 | $ | 47,464 | ||
| Professional services | 410 | 177 | ||||
| License | - | - | ||||
| Total scores revenues | $ | 41,553 | $ | 47,641 | ||
| Tools revenues: | ||||||
| Transactional and maintenance | $ | 7,229 | $ | 6,631 | ||
| Professional services | 4,365 | 6,966 | ||||
| License | 5,477 | 7,277 | ||||
| Total tools revenues | $ | 17,071 | $ | 20,874 | ||
| Total revenues: | ||||||
| Transactional and maintenance | $ | 115,106 | $ | 123,054 | ||
| Professional services | 26,237 | 28,397 | ||||
| License | 10,153 | 12,009 | ||||
| Total revenues | $ | 151,496 | $ | 163,460 | ||
| FAIR ISAAC CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Quarters Ended December 31, 2009 and 2008 | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| December 31, | ||||||||
| 2009 | 2008 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 17,686 | $ | 12,110 | ||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization | 8,087 | 9,583 | ||||||
| Share-based compensation | 4,535 | 5,471 | ||||||
| Changes in operating assets and liabilities | 2,807 | 7,159 | ||||||
| Other, net | (1,859 | ) | 2,341 | |||||
| Net cash provided by operating activities | 31,256 | 36,664 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (4,488 | ) | (5,554 | ) | ||||
| Net activity from marketable securities | 35,235 | (1,612 | ) | |||||
| Other, net | 397 | 1,300 | ||||||
|
Net cash provided by (used in) investing activities |
31,144 | (5,866 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from issuances of common stock | (461 | ) | 3,222 | |||||
| Repurchases of common stock | (33,393 | ) | - | |||||
| Other, net | (714 | ) | (853 | ) | ||||
| Net cash provided by (used in) financing activities | (34,568 | ) | 2,369 | |||||
| Effect of exchange rate changes on cash | 218 | (5,639 | ) | |||||
| Increase in cash and cash equivalents | 28,050 | 27,528 | ||||||
| Cash and cash equivalents, beginning of period | 178,157 | 129,678 | ||||||
| Cash and cash equivalents, end of period | $ | 206,207 | $ | 157,206 | ||||
CONTACT:
FICO
Investors
Michael Pung, 800-213-5542
investor@fico.com
or
Media
Steve
Astle, 415-446-6204
stephenastle@fico.com