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 28, 2009 |
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 28, 2009, Fair Isaac Corporation (the “Company”) reported its financial results for the quarter ended December 31, 2008. See the Company’s press release dated January 28, 2009, 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 28, 2009 |
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.
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FAIR ISAAC CORPORATION |
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By: |
/s/ Charles M. Osborne |
|
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Charles M. Osborne |
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Executive Vice President and Chief Financial Officer |
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Date: |
January 28, 2009 |
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EXHIBIT INDEX
|
Exhibit No. |
Description |
Manner of Filing |
| 99.1 | Press Release dated January 28, 2009 | Filed Electronically |
Exhibit 99.1
Fair Isaac Announces First Quarter 2009 Results
Earnings
per share from continuing operations of $0.25, including net charges
related to
previously
announced cost reductions of $0.12 per share
MINNEAPOLIS--(BUSINESS WIRE)--January 28, 2009--Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology today announced financial results for its first fiscal quarter ended December 31, 2008.
First Quarter Fiscal 2009 Results
The company reported first quarter revenues of $163.5 million in fiscal 2009 versus $190.1 million reported in the prior year period. Income from continuing operations for the first quarter of fiscal 2009 totaled $12.1 million, or $0.25 per diluted share, versus $20.8 million, or $0.41 per diluted share, reported in the prior year period. As previously announced, first quarter results included a $5.7 million after-tax restructuring charge for workforce and facility reductions, or $0.12 cents per diluted share.
“Despite the sustained downturn in the global economy and the markets Fair Isaac serves, we remain focused on executing our strategy and maintaining profitability,” stated Mark Greene, Chief Executive Officer. “Fair Isaac has a strong balance sheet and substantial free cash flow, which gives us agility and flexibility in today’s turbulent financial markets. In addition, we benefit from a global customer base and a broad portfolio of industry-leading solutions for risk management that are particularly relevant in this challenging time."
First Quarter Fiscal 2009 Revenue Highlights
Revenues for first quarter fiscal 2009 across each of the company’s four operating segments were as follows:
- Strategy Machine® Solutions revenues were $87.6 million in the first quarter compared to $97.4 million in the prior year quarter, or a decrease of 10%, primarily due a decline associated with fraud, marketing solutions and collections and recovery, partially offset by an increase in revenues derived from consumer products.
- Scoring Solutions revenues were $34.1 million in the first quarter compared to $42.7 million in the prior year quarter, or a decrease of 20%, primarily due to a decrease in revenues derived from our credit bureau risk scores.
- Professional Services revenues were $27.8 million in the first quarter compared to $36.0 million in the prior year quarter, or a decrease of 23%, primarily due to a decline associated with customized analytic implementation services, collections and recovery services and customer management services partially offset by an increase in revenues derived from tools services.
- Analytic Software Tools revenues increased to $14.0 million in the first quarter compared to $13.9 million in the prior year quarter, essentially flat with the prior year period.
Bookings Highlights from Continuing Operations
The bookings for the first quarter were $52.5 million compared to $92.7 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 the volume of new bookings achieved 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 Highlights
Cash and cash equivalents, and investments were $298.8 million at December 31, 2008, as compared to $271.2 million at September 30, 2008. Significant changes in cash and cash equivalents from September 30, 2008 include cash provided by operations of $36.7 million and $3.2 million received from the exercise of stock options and stock issued under an employee stock purchase plan. Cash used during the first quarter includes $5.6 million related to purchases of property and equipment.
Outlook
In light of the continuing uncertainty in the global financial markets and the continued lack of visibility into our clients’ spending intentions, we are not providing guidance at this time.
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 2009 results and provide various strategic and operational updates. The call can be accessed at Fair Isaac's Web site at www.fairisaac.com (follow the instructions on the Investor Relations page). A replay of the webcast will be available through February 28, 2009.
The webcast will also being 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 Fair Isaac Corporation
Fair Isaac Corporation (NYSE:FIC) makes decisions smarter. The company’s solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Founded in 1956, Fair Isaac powers hundreds of billions of decisions each year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector. Fair Isaac also helps millions of individuals manage their credit health through the www.myfico.com website. Visit Fair Isaac online at www.fairisaac.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news 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 success of the Company’s Decision Management strategy and reengineering plan, 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 Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2008. If any of these risks or uncertainties materializes, Fair Isaac’s results could differ materially from its expectations. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.
Fair Isaac and Strategy Machine are 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, 2008 and 2007 | ||||||||
| (In thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| December 31, | ||||||||
| 2008 | 2007 | |||||||
| Revenues | $ | 163,460 | $ | 190,106 | ||||
| Operating expenses: | ||||||||
| Cost of revenues | 59,019 | 66,972 | ||||||
| Research and development | 18,121 | 19,469 | ||||||
| Selling, general and administrative | 54,769 | 66,759 | ||||||
| Amortization of intangible assets | 3,247 | 3,063 | ||||||
| Restructuring | 8,078 | (445 | ) | |||||
| Total operating expenses | 143,234 | 155,818 | ||||||
| Operating income | 20,226 | 34,288 | ||||||
| Other expense, net | (4,057 | ) | (2,128 | ) | ||||
| Income from continuing operations before income taxes | 16,169 | 32,160 | ||||||
| Provision for income taxes | 4,059 | 11,324 | ||||||
| Income from continuing operations | 12,110 | 20,836 | ||||||
| Loss from discontinued operations | - | (650 | ) | |||||
| Net income | $ | 12,110 | $ | 20,186 | ||||
| Basic earnings (loss) per share: | ||||||||
| Continuing operations | $ | 0.25 | $ | 0.42 | ||||
| Discontinued operations | - | (0.02 | ) | |||||
| Total | $ | 0.25 | $ | 0.40 | ||||
| Diluted earnings (loss) per share: | ||||||||
| Continuing operations | $ | 0.25 | $ | 0.41 | ||||
| Discontinued operations | - | (0.02 | ) | |||||
| Total | $ | 0.25 | $ | 0.39 | ||||
| Shares used in computing earnings per share: | ||||||||
| Basic | 48,478 | 50,042 | ||||||
| Diluted | 48,522 | 51,200 | ||||||
| FAIR ISAAC CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| December 31, 2008 and September 30, 2008 | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| December 31, | September 30, | |||||
| 2008 | 2008 | |||||
| ASSETS: | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 157,206 | $ | 129,678 | ||
| Marketable securities | 55,174 | 57,049 | ||||
| Accounts receivable, net | 114,395 | 141,571 | ||||
| Prepaid expenses and other current assets | 22,991 | 23,404 | ||||
| Total current assets | 349,766 | 351,702 | ||||
| Marketable securities and investments | 86,449 | 84,475 | ||||
| Property and equipment, net | 44,993 | 46,360 | ||||
| Goodwill and intangible assets, net | 711,089 | 738,550 | ||||
| Other assets | 55,653 | 54,166 | ||||
| $ | 1,247,950 | $ | 1,275,253 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 41,305 | $ | 54,837 | ||
| Accrued compensation and employee benefits | 25,527 | 29,551 | ||||
| Deferred revenue | 39,539 | 38,243 | ||||
| Total current liabilities | 106,371 | 122,631 | ||||
| Revolving line of credit | 295,000 | 295,000 | ||||
| Senior notes | 275,000 | 275,000 | ||||
| Other liabilities | 22,015 | 20,681 | ||||
| Total liabilities | 698,386 | 713,312 | ||||
| Stockholders’ equity | 549,564 | 561,941 | ||||
| $ | 1,247,950 | $ | 1,275,253 | |||
| FAIR ISAAC CORPORATION | ||||||
| REVENUES BY SEGMENT | ||||||
| For the Quarters Ended December 31, 2008 and 2007 | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| Quarter Ended | ||||||
| December 31, | ||||||
| 2008 | 2007 | |||||
| Strategy machine solutions | $ | 87,575 | $ | 97,427 | ||
| Scoring solutions | 34,110 | 42,727 | ||||
| Professional services | 27,824 | 36,016 | ||||
| Analytic software tools | 13,951 | 13,936 | ||||
| Total revenues | $ | 163,460 | $ | 190,106 | ||
| FAIR ISAAC CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Quarters Ended December 31, 2008 and 2007 | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| December 31, | ||||||||
| 2008 | 2007 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 12,110 | $ | 20,186 | ||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization | 9,583 | 9,713 | ||||||
| Share-based compensation | 5,471 | 8,093 | ||||||
| Changes in operating assets and liabilities | 7,159 | 9,654 | ||||||
| Other, net | 2,341 | 390 | ||||||
| Net cash provided by operating activities | 36,664 | 48,036 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (5,554 | ) | (7,440 | ) | ||||
| Net activity from marketable securities | (1,612 | ) | 12,127 | |||||
| Other, net | 1,300 | 1,362 | ||||||
| Net cash provided by (used in) investing activities | (5,866 | ) | 6,049 | |||||
| Cash flows from financing activities: | ||||||||
| Net increase in revolving line of credit | - | 20,000 | ||||||
| Proceeds from issuances of common stock | 3,222 | 13,214 | ||||||
| Repurchases of common stock | - | (82,424 | ) | |||||
| Other, net | (853 | ) | (306 | ) | ||||
| Net cash provided by (used in) financing activities | 2,369 | (49,516 | ) | |||||
| Effect of exchange rate changes on cash | (5,639 | ) | 10 | |||||
| Increase in cash and cash equivalents | 27,528 | 4,579 | ||||||
| Cash and cash equivalents, beginning of period | 129,678 | 95,284 | ||||||
| Cash and cash equivalents, end of period | $ | 157,206 | $ | 99,863 | ||||
CONTACT:
Fair Isaac Corporation
Investors & Analysts:
John
D. Emerick, Jr., 800-213-5542
investorrelations@fairisaac.com