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) |
August 3, 2011 |
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 August 3, 2011, Fair Isaac Corporation (the “Company”) reported its financial results for the quarter ended June 30, 2011. See the Company’s press release dated August 3, 2011, 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 August 3, 2011 |
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/ MICHAEL J. PUNG |
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Michael J. Pung |
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Senior Vice President and Chief Financial |
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Officer |
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Date: |
August 3, 2011 |
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EXHIBIT INDEX
|
Exhibit No. |
Description |
Manner of Filing |
|
99.1 |
Press Release dated August 3, 2011 |
Filed |
Exhibit 99.1
FICO Announces Earnings for Third Quarter Fiscal 2011
Earnings per share of $0.58 from revenues of $151 million
MINNEAPOLIS--(BUSINESS WIRE)--August 3, 2011--FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced financial results for its third fiscal quarter ended June 30, 2011.
Third Quarter Fiscal 2011 Results
Net income for the quarter totaled $23.2 million, or $0.58 per share. This compares with prior-year period net income of $17.9 million, or $0.40 per share.
Third Quarter Fiscal 2011 Revenue
The company reported quarterly revenues of $150.7 million versus $155.3 million reported in the prior year period.
“Results this quarter were mixed. Revenue was disappointing, as several significant transactions pushed into Q4. Our vigilant management of expenses allowed us to nonetheless post good net income and earnings results,” said Mark Greene, chief executive officer. “We are now focused on converting the healthy pipeline of opportunities currently in view into signed deals this quarter, to meet our full-year FY11 top- and bottom-line guidance.”
Revenues for the third quarter of fiscal 2011 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 $92.1 million in the third quarter compared to $91.4 million in the prior year quarter, an increase of 1%, primarily due to an increase in revenue from Fraud Management solutions, offset by declines in license sales in Collections and Recovery and Customer Management solutions, and volume decline in Marketing solutions.
- Scores revenues, which include the company’s business-to-business scoring solutions and associated professional services, and the myFICO® business-to-consumer service, were $41.8 million in the third quarter compared to $46.5 million in the prior year quarter, a decrease of 10%. The B2B decline was due primarily to a true-up recorded in the previous year.
- Tools revenues, which include Blaze Advisor® and Xpress Optimization and related products and services, were $16.8 million in the third quarter compared to $17.4 million in the prior year quarter, a decrease of 3%, primarily due to a decrease in license sales during the quarter.
Bookings
Bookings for the third quarter were $50.0 million compared to $63.5 million in the prior year period. Bookings represent contracts signed in the current reporting period that will generate new future revenue streams. Management regards the volume of bookings achieved, among other factors, as an important indicator of future revenues, but they are not comparable to, nor should they be substituted for, an analysis of the company’s revenues, and they are subject to a number of risks and uncertainties concerning timing and contingencies affecting product delivery and performance.
Balance Sheet and Cash Flow
Cash and cash equivalents, and investments were $274.4 million at June 30, 2011, as compared to $230.3 million at September 30, 2010. Significant changes in cash and cash equivalents from September 30, 2010 include $105.0 million of cash provided by operations, $7.9 million from issuances of common stock from share-based payment plans, $53.8 million used for repurchases of common stock, $8.3 million used for purchases of property and equipment, $8.0 million related to repayment on Senior Notes, and $2.4 million of dividends paid.
Outlook
The company reaffirms the previously issued guidance for fiscal 2011, which follows:
| Fiscal 2011 Guidance | ||
| Revenue | $620 million - $625 million | |
| GAAP Net Income | $68 million - $72 million | |
| Non-GAAP Net Income, excluding restructuring charges of $8.7 million |
$77 million - $81 million |
|
| GAAP Earnings Per Share | $1.71 - $1.81 | |
| Non-GAAP Earnings Per Share, excluding restructuring charges of $0.21 |
$1.93 - $2.03 |
Our guidance figures for non-GAAP net income and non-GAAP earnings per share have been adjusted to exclude the effects of restructuring charges for Fiscal 2011 related to workforce and facility reductions. We believe the presentation of guidance on these non-GAAP figures provides useful information to investors for comparing year-over-year performance and analyzing business trends of our financial condition and results of operations, particularly given that we revised our Fiscal 2011 guidance earlier this year partially as a result of the restructuring charges.
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 third quarter fiscal 2011 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 September 3, 2011.
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, 2010 and its last quarterly report on Form 10-Q for the period ended March 31, 2011. 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 STATEMENTS OF INCOME | ||||||||||||||||
| For the Quarters and Nine Months Ended June 30, 2011 and 2010 | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues: | ||||||||||||||||
| Transactional and maintenance | $ | 111,740 | $ | 115,902 | $ | 337,933 | $ | 344,709 | ||||||||
| Professional services | 29,582 | 25,541 | 84,531 | 75,704 | ||||||||||||
| License | 9,357 | 13,886 | 36,970 | 30,132 | ||||||||||||
| Total revenues | 150,679 | 155,329 | 459,434 | 450,545 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of revenues | 43,398 | 45,316 | 137,707 | 132,476 | ||||||||||||
| Research and development | 14,290 | 19,176 | 48,573 | 57,403 | ||||||||||||
| Selling, general and administrative | 53,643 | 57,077 | 168,725 | 165,977 | ||||||||||||
| Amortization of intangible assets | 1,942 | 2,683 | 5,804 | 8,918 | ||||||||||||
| Restructuring | - | - | 12,391 | - | ||||||||||||
| 113,273 | 124,252 | 373,200 | 364,774 | |||||||||||||
| Operating income | 37,406 | 31,077 | 86,234 | 85,771 | ||||||||||||
| Other expense, net | (5,469 | ) | (4,368 | ) | (21,840 | ) | (13,507 | ) | ||||||||
| Income from operations before income taxes | 31,937 | 26,709 | 64,394 | 72,264 | ||||||||||||
| Provision for income taxes | 8,748 | 8,771 | 17,451 | 23,648 | ||||||||||||
| Net income | $ | 23,189 | $ | 17,938 | $ | 46,943 | $ | 48,616 | ||||||||
| Basic earnings per share | $ | 0.59 | $ | 0.40 | $ | 1.18 | $ | 1.05 | ||||||||
| Diluted earnings per share | $ | 0.58 | $ | 0.40 | $ | 1.16 | $ | 1.04 | ||||||||
| Shares used in computing earnings per share: | ||||||||||||||||
| Basic | 39,451 | 44,446 | 39,788 | 46,171 | ||||||||||||
| Diluted | 40,241 | 44,885 | 40,426 | 46,561 | ||||||||||||
| FAIR ISAAC CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| June 30, 2011 and September 30, 2010 | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| June 30, | September 30, | |||||
| 2011 | 2010 | |||||
| ASSETS: | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 140,917 | $ | 146,199 | ||
| Marketable securities | 117,593 | 68,615 | ||||
| Accounts receivable, net | 102,030 | 113,187 | ||||
| Prepaid expenses and other current assets | 15,866 | 19,174 | ||||
| Total current assets | 376,406 | 347,175 | ||||
| Marketable securities and investments | 15,845 | 15,441 | ||||
| Property and equipment, net | 27,278 | 30,975 | ||||
| Goodwill and intangible assets, net | 688,632 | 693,197 | ||||
| Other assets | 33,525 | 36,928 | ||||
| Total assets | $ | 1,141,686 | $ | 1,123,716 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 45,806 | $ | 37,497 | ||
| Accrued compensation and employee benefits | 29,395 | 33,697 | ||||
| Deferred revenue | 51,482 | 42,953 | ||||
| Current maturities on long-term debt | 8,000 | 8,000 | ||||
| Total current liabilities | 134,683 | 122,147 | ||||
| Senior notes | 504,000 | 512,000 | ||||
| Other liabilities | 15,217 | 14,655 | ||||
| Total liabilities | 653,900 | 648,802 | ||||
| Stockholders’ equity | 487,786 | 474,914 | ||||
| $ | 1,141,686 | $ | 1,123,716 | |||
| FAIR ISAAC CORPORATION | |||||||||||||
| REVENUE BY SEGMENT | |||||||||||||
| For the Quarters and Nine Months Ended June 30, 2011 and 2010 | |||||||||||||
| (In thousands) | |||||||||||||
| (Unaudited) | |||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Applications revenues: | |||||||||||||
| Transactional and maintenance | $ | 63,355 | $ | 62,939 | $ | 194,054 | $ | 194,376 | |||||
| Professional services | 25,893 | 21,500 | 74,128 | 62,583 | |||||||||
| License | 2,812 | 6,991 | 17,450 | 14,239 | |||||||||
| Total applications revenues | $ | 92,060 | $ | 91,430 | $ | 285,632 | $ | 271,198 | |||||
| Scores revenues: | |||||||||||||
| Transactional and maintenance | $ | 40,798 | $ | 46,153 | $ | 121,197 | $ | 129,181 | |||||
| Professional services | 610 | 352 | 1,579 | 1,411 | |||||||||
| License | 385 | - | 792 | - | |||||||||
| Total scores revenues | $ | 41,793 | $ | 46,505 | $ | 123,568 | $ | 130,592 | |||||
| Tools revenues: | |||||||||||||
| Transactional and maintenance | $ | 7,587 | $ | 6,810 | $ | 22,682 | $ | 21,152 | |||||
| Professional services | 3,079 | 3,689 | 8,824 | 11,710 | |||||||||
| License | 6,160 | 6,895 | 18,728 | 15,893 | |||||||||
| Total tools revenues | $ | 16,826 | $ | 17,394 | $ | 50,234 | $ | 48,755 | |||||
| Total revenues: | |||||||||||||
| Transactional and maintenance | $ | 111,740 | $ | 115,902 | $ | 337,933 | $ | 344,709 | |||||
| Professional services | 29,582 | 25,541 | 84,531 | 75,704 | |||||||||
| License | 9,357 | 13,886 | 36,970 | 30,132 | |||||||||
| Total revenues | $ | 150,679 | $ | 155,329 | $ | 459,434 | $ | 450,545 | |||||
| FAIR ISAAC CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Nine Months Ended June 30, 2011 and 2010 | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| June 30, | ||||||||
| 2011 | 2010 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 46,943 | $ | 48,616 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization | 18,623 | 23,762 | ||||||
| Share-based compensation | 11,762 | 13,235 | ||||||
| Changes in operating assets and liabilities | 30,184 | 649 | ||||||
| Other, net | (2,459 | ) | (2,237 | ) | ||||
| Net cash provided by operating activities | 105,053 | 84,025 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (8,323 | ) | (12,746 | ) | ||||
| Net activity from marketable securities | (49,486 | ) | 50,824 | |||||
| Other, net | 75 | 2,232 | ||||||
|
Net cash provided by (used in) investing activities |
(57,734 | ) | 40,310 | |||||
| Cash flows from financing activities: | ||||||||
| Payments on revolving line of credit | - | (50,000 | ) | |||||
| Payments on Senior Notes | (8,000 | ) | - | |||||
| Proceeds from issuances of common stock | 7,902 | 1,981 | ||||||
| Repurchases of common stock | (53,761 | ) | (137,497 | ) | ||||
| Other, net | (1,077 | ) | (1,720 | ) | ||||
| Net cash used in financing activities | (54,936 | ) | (187,236 | ) | ||||
| Effect of exchange rate changes on cash | 2,335 | (2,644 | ) | |||||
| Increase in cash and cash equivalents | (5,282 | ) | (65,545 | ) | ||||
| Cash and cash equivalents, beginning of period | 146,199 | 178,157 | ||||||
| Cash and cash equivalents, end of period | $ | 140,917 | $ | 112,612 | ||||
CONTACT:
FICO
Investors/Analysts:
Steve Weber,
800-213-5542
investor@fico.com
or
Media:
Steve
Astle, 415-446-6204
stephenastle@fico.com