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) July 25, 2012
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):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o 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 |
| i |
| Item 2.02. | Results of Operations and Financial Condition. |
On July 25, 2012, Fair Isaac Corporation (the “Company”) reported its financial results for the quarter ended June 30, 2012. See the Company’s press release dated July 25, 2012, 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 July 25, 2012 |
| 1 |
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 | ||
| By | /s/ MICHAEL J. PUNG | |
| Michael J. Pung | ||
| Executive Vice President and Chief Financial Officer | ||
Date: July 25, 2012
| 2 |
EXHIBIT INDEX
| Exhibit No. | Description | Manner of Filing |
| 99.1 | Press Release dated July 25, 2012 | Filed Electronically |
| 3 |
FICO Announces Earnings of $0.59 per Share for Third Quarter Fiscal 2012
Revenue of $160 million vs. $151 million in prior year
Raises guidance for fiscal 2012
MINNEAPOLIS, July 25, 2012 /PRNewswire/ -- FICO (NYSE: FICO), the leading provider of analytics and decision management technology, today announced financial results for its third fiscal quarter ended June 30, 2012.
(Logo: http://photos.prnewswire.com/prnh/20111010/CG83314LOGO)
Third Quarter Fiscal 2012 Results
Net income for the quarter totaled $20.7 million, or $0.59 per share, versus $23.2 million, or $0.58 per share, reported in the prior year period.
Third Quarter Fiscal 2012 Revenue
The company reported revenues of $160.5 million for the quarter as compared to $150.7 million reported in the prior year period, an increase of 7%.
"Our results were solid this quarter, driven by healthy revenue growth in our Applications and Tools businesses," said Will Lansing, chief executive officer. "The strength of our core analytics solutions, in combination with B2B Scores, will continue to be the foundation of our business as we uncover and pursue new opportunities to accelerate growth. Accordingly, we feel confident increasing our guidance for fiscal 2012."
Revenues for third quarter fiscal 2012 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 $98.3 million in the third quarter compared to $92.1 million in the prior year quarter, an increase of 7%, due primarily to increases in revenue from Customer Management solutions and Collections & Recovery solutions.
- Scores revenues, which include the company's business-to-business (B2B) scoring solutions and associated professional services, and the myFICO® business-to-consumer (B2C) service, were $41.9 million in the third quarter compared to $41.8 million in the prior year quarter. The B2B revenue increased 4% from the prior year quarter, offset by a decline in B2C.
- Tools revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $20.2 million in the third quarter compared to $16.8 million in the prior year quarter, an increase of 20%, primarily due to an increase in Blaze Advisor® and Xpress license sales during the quarter.
Bookings
Bookings for the third quarter were $57.5 million compared to $50.0 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 $166.8 million at June 30, 2012, as compared to $256.7 million at September 30, 2011. Significant changes in cash and cash equivalents from September 30, 2011, include $106.4 million of cash provided by operations, $39.6 million from the issuance of common stock from share-based payment plans, $191.1 million used for repurchases of common stock, $19.6 million used for purchases of property and equipment, $18.2 million used for an acquisition, $8.0 million repayment on senior notes, and $2.1 million of dividends paid.
Outlook
The company is increasing the previously issued guidance for fiscal 2012, which follows:
New Fiscal 2012 Guidance | Old Fiscal 2012 Guidance | |
Revenue | $650 million - $655 million | $640 million - $645 million |
GAAP Net Income | $90 million - $93 million | $86 million - $89 million |
GAAP Earnings Per Share | $2.50 - $2.60 | $2.45 - $2.55 |
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 2012 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 August 25, 2012.
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, 2011 and Form 10-Q for the quarter ended March 31, 2012. 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, 2012 and 2011 | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Quarter Ended | Nine Months Ended | ||||||
June 30, | June 30, | ||||||
2012 | 2011 | 2012 | 2011 | ||||
Revenues: | |||||||
Transactional and maintenance | 113,708 | 111,740 | 342,734 | 337,933 | |||
Professional services | 31,993 | 29,582 | 91,147 | 84,531 | |||
License | 14,777 | 9,357 | 56,467 | 36,970 | |||
Total revenues | 160,478 | 150,679 | 490,348 | 459,434 | |||
Operating expenses: | |||||||
Cost of revenues | 47,832 | 43,398 | 142,620 | 137,707 | |||
Research & development | 14,890 | 14,290 | 41,925 | 48,573 | |||
Selling, general and administrative | 59,123 | 53,643 | 173,482 | 168,725 | |||
Amortization of intangible assets | 1,465 | 1,942 | 4,885 | 5,804 | |||
Restructuring | - | - | - | 12,391 | |||
123,310 | 113,273 | 362,912 | 373,200 | ||||
Operating income | 37,168 | 37,406 | 127,436 | 86,234 | |||
Other expense, net | (6,914) | (5,469) | (23,873) | (21,840) | |||
Income from operations before income taxes | 30,254 | 31,937 | 103,563 | 64,394 | |||
Provision for income taxes | 9,505 | 8,748 | 32,805 | 17,451 | |||
Net income | 20,749 | 23,189 | 70,758 | 46,943 | |||
Basic earnings per share: | 0.61 | 0.59 | 2.01 | 1.18 | |||
Diluted earnings per share: | 0.59 | 0.58 | 1.95 | 1.16 | |||
Shares used in computing earnings per share: | |||||||
Basic | 34,004 | 39,451 | 35,126 | 39,788 | |||
Diluted | 35,293 | 40,241 | 36,247 | 40,426 | |||
FAIR ISAAC CORPORATION | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
June 30, 2012 and September 30, 2011 | |||
(In thousands) | |||
(Unaudited) | |||
June 30, | September 30, | ||
2012 | 2011 | ||
ASSETS: | |||
Current assets: | |||
Cash and cash equivalents | $ 118,681 | $ 135,752 | |
Marketable securities | 32,022 | 105,826 | |
Accounts receivable, net | 111,863 | 104,974 | |
Prepaid expenses and other current assets | 16,850 | 17,929 | |
Total current assets | 279,416 | 364,481 | |
Marketable securities and investments | 16,090 | 15,104 | |
Property and equipment, net | 38,138 | 33,017 | |
Goodwill and intangible assets, net | 697,085 | 684,186 | |
Other assets | 35,566 | 32,680 | |
$ 1,066,295 | $ 1,129,468 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
Current liabilities: | |||
Accounts payable and other accrued liabilities | $ 48,800 | $ 60,260 | |
Accrued compensation and employee benefits | 36,077 | 36,470 | |
Deferred revenue | 50,803 | 41,768 | |
Current maturities on long-term debt | 8,000 | 8,000 | |
Total current liabilities | 143,680 | 146,498 | |
Senior notes | 496,000 | 504,000 | |
Other liabilities | 20,255 | 13,476 | |
Total liabilities | 659,935 | 663,974 | |
Stockholders' equity | 406,360 | 465,494 | |
$ 1,066,295 | $ 1,129,468 | ||
FAIR ISAAC CORPORATION | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
For the Nine Months Ended June 30, 2012 and 2011 | |||
(In thousands) | |||
(Unaudited) | |||
Nine Months Ended | |||
June 30, | |||
2012 | 2011 | ||
Cash flows from operating activities: | |||
Net income | $ 70,758 | $ 46,943 | |
Adjustments to reconcile net income to net cash provided by | |||
operating activities: | |||
Depreciation and amortization | 14,555 | 18,623 | |
Share-based compensation | 15,466 | 11,762 | |
Changes in operating assets and liabilities net of disposition effects | 7,985 | 30,184 | |
Other, net | (2,356) | (2,459) | |
Net cash provided by operating activities | 106,408 | 105,053 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (19,616) | (8,323) | |
Net activity from marketable securities | 73,592 | (49,486) | |
Cash paid for acquisitions, net of cash acquired | (18,192) | - | |
Other, net | (149) | 75 | |
Net cash provided by (used in) investing activities | 35,635 | (57,734) | |
Cash flows from financing activities: | |||
Payment on Senior Notes | (8,000) | (8,000) | |
Proceeds from issuances of common stock | 39,609 | 7,902 | |
Repurchases of common stock | (191,056) | (53,761) | |
Other, net | 2,291 | (1,077) | |
Net cash used in financing activities | (157,156) | (54,936) | |
Effect of exchange rate changes on cash | (1,958) | 2,335 | |
Increase in cash and cash equivalents | (17,071) | (5,282) | |
Cash and cash equivalents, beginning of period | 135,752 | 146,199 | |
Cash and cash equivalents, end of period | $ 118,681 | $ 140,917 | |
FAIR ISAAC CORPORATION | |||||||||
REVENUE BY SEGMENT | |||||||||
For the Quarters and Nine Months Ended June 30, 2012 and 2011 | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | Nine Months Ended | ||||||||
June 30, | June 30, | ||||||||
2012 | 2011 | 2012 | 2011 | ||||||
Applications revenues: | |||||||||
Transactional and maintenance | $ 64,729 | $ 63,355 | $ 192,524 | $ 194,054 | |||||
Professional services | 27,109 | 25,893 | 77,192 | 74,128 | |||||
License | 6,484 | 2,812 | 34,956 | 17,450 | |||||
Total applications revenues | $ 98,322 | $ 92,060 | $ 304,672 | $ 285,632 | |||||
Scores revenues: | |||||||||
Transactional and maintenance | $ 41,394 | $ 40,798 | $ 127,227 | $ 121,197 | |||||
Professional services | 500 | 610 | 1,309 | 1,579 | |||||
License | 26 | 385 | 351 | 792 | |||||
Total scores revenues | $ 41,920 | $ 41,793 | $ 128,887 | $ 123,568 | |||||
Tools revenues: | |||||||||
Transactional and maintenance | $ 7,585 | $ 7,587 | $ 22,983 | $ 22,682 | |||||
Professional services | 4,384 | 3,079 | 12,646 | 8,824 | |||||
License | 8,267 | 6,160 | 21,160 | 18,728 | |||||
Total tools revenues | $ 20,236 | $ 16,826 | $ 56,789 | $ 50,234 | |||||
Total revenues: | |||||||||
Transactional and maintenance | $ 113,708 | $ 111,740 | $ 342,734 | $ 337,933 | |||||
Professional services | 31,993 | 29,582 | 91,147 | 84,531 | |||||
License | 14,777 | 9,357 | 56,467 | 36,970 | |||||
Total revenues | $ 160,478 | $ 150,679 | $ 490,348 | $ 459,434 | |||||
CONTACT: Investors/Analysts, Steve Weber, 1-800-213-5542, investor@fico.com, or Media, Steve Astle, +1-415-446-6204, stephenastle@fico.com