Fair Isaac Reports Second Quarter Fiscal 2004 Results; 24% Year-Over-Year EPS Growth.Business Editors SAN RAFAEL San Rafael (săn rəfĕl`), residential city (1990 pop. 48,404), seat of Marin co., W Calif., a suburb of San Francisco on the northern shore of San Francisco Bay; inc. 1913. , Calif.--(BUSINESS WIRE)--April 29, 2004 Fair Isaac Fair Isaac Corporation (NYSE: FIC), founded in 1956 by engineer Bill Fair and mathematician Earl Isaac, provides consulting services and enterprise decision management systems. Corporation (NYSE NYSE See: New York Stock Exchange :FIC FIC First International Computer FIC Fogarty International Center (John E. Fogarty International Center for Advanced Study in the Health Sciences; National Institutes of Health) FIC Fellowship for Intentional Community ), a leader in customer analytics and decision technology, today announced financial results for the second fiscal quarter ended March 31, 2004. The company achieved second quarter revenues of $173.2 million in fiscal 2004 versus $158.6 million reported in the second quarter of fiscal 2003. Revenues for the six months ended March 31, 2004 totaled $342.6 million as compared to revenues of $305.3 million reported in the same period last year. Net income for the second quarter of fiscal 2004 totaled $30.8 million, or $0.42 per share on 78.1 million diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares outstanding, compared with net income of $25.6 million, or $0.34 per share on 75.7 million diluted shares outstanding reported in the same quarter last year (1). Net income for the six months ended March 31, 2004 totaled $59.6 million, or $0.81 per share on 77.9 million diluted shares outstanding, compared with $45.4 million, or $0.59 per share on 76.9 million shares outstanding reported in the same period last year (1). All earnings per share figures reflect the company's three-for-two stock split, which took effect March 10, 2004. "We had another very strong bookings quarter and hit our bottom line while undertaking many new strategic initiatives," said Tom Grudnowski, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Fair Isaac. "We had some standout performances in the Consumer and Software Tools divisions, both posting high double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. year-over-year growth. Our revenue was reduced a bit from our plans, stemming largely from underperformance in our insurance segment. We also were able to execute on a number of significant initiatives with the promotion of our CFO See Chief Financial Officer. to a newly established COO (Cell Of Origin) See mobile positioning. role, replacing him with another seasoned executive. Further, we just announced an offer to buy London Bridge London Bridge, granite, five-arched bridge formerly over the Thames, in London, England. It is 928 ft (283 m) long and was designed by John Rennie and built between 1824 and 1831. , a UK-based software company specializing in debt recovery and collections solutions, which rounds off our customer lifecycle offerings very nicely and adds an important European-based presence." The company will host a conference call today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its second quarter results and provide guidance for the remainder of 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 pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae 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 Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and 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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. providers, healthcare organizations and government agencies. Through the www.myFICO.com Web site, consumers use the company's FICO FICO See: Financing corporation (R) scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended September September: see month. 30, 2003 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended December December: see month. 31, 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. in other countries. Other product and company names herein may be trademarks of their respective owners. (1) The computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter and six months ended March 31, 2004 includes 4.1 million shares of common stock issuable upon conversion of our convertible subordinated notes, along with a corresponding adjustment to net income to add back related interest expense, net of tax, of approximately $1.6 million and $3.2 million, respectively. The computation of diluted earnings per share for the quarter and the six months ended March 31, 2003 excludes these shares, as they were antidilutive antidilutive Of or relating to the conversion of convertible securities into common stock when such conversion would result in an increase in diluted earnings per share or a decrease in diluted loss per share. during these periods.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters and Six Months Ended March 31, 2004 and 2003
(In thousands, except per share data)
(Unaudited)
Quarter Ended Six Months Ended
March 31, March 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Revenues $173,246 $158,598 $342,587 $305,330
--------- --------- --------- ---------
Operating expenses:
Cost of revenues 63,283 64,041 122,818 124,695
Research and
development 14,333 17,119 30,734 34,366
Selling, general
and
administrative 40,508 31,724 82,268 63,898
Amortization of
intangible assets 4,064 3,419 8,131 6,681
Restructuring and
merger-related - 606 - 2,616
--------- --------- --------- ---------
Total operating
expenses 122,188 116,909 243,951 232,256
--------- --------- --------- ---------
Operating income 51,058 41,689 98,636 73,074
Other (expense)
income, net (1,117) (585) (2,492) 208
--------- --------- --------- ---------
Income before
income taxes 49,941 41,104 96,144 73,282
Provision for
income taxes 19,098 15,459 36,540 27,847
--------- --------- --------- ---------
Net income $30,843 $25,645 $59,604 $45,435
========= ========= ========= =========
Earnings per share:
Basic $0.44 $0.36 (b) $0.85 $0.62 (b)
========= ========= ========= =========
Diluted $0.42 (a) $0.34 (b) $0.81 (a) $0.59 (b)
========= ========= ========= =========
Shares used in
computing earnings
per share:
Basic 70,308 71,847 (b) 70,065 73,563 (b)
========= ========= ========= =========
Diluted 78,071 (a) 75,679 (b) 77,931 (a) 76,937 (b)
========= ========= ========= =========
(a) The computation of diluted earnings per share for the quarter
and six months ended March 31, 2004 includes 4.1 million shares of
common stock issuable upon conversion of our convertible subordinated
notes, along with a corresponding adjustment to net income to add back
related interest expense, net of tax, of approximately $1.6 million
and $3.2 million, respectively. The computation of diluted earnings
per share for the quarter and the six months ended March 31, 2003
excludes these shares, as they were antidilutive during these periods.
(b) On February 2, 2004, our Board of Directors declared a
three-for-two stock split in the form of a 50% common stock dividend
with cash payment in lieu of fractional shares, paid on March 10, 2004
to shareholders of record on February 18, 2004. The share and per
share amounts within the condensed consolidated statements of income
have been restated to reflect this stock split.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2004 and September 30, 2003
(In thousands)
(Unaudited)
March 31, Sept. 30,
2004 2003
----------- -----------
ASSETS:
Current assets:
Cash and investments $633,791 $505,351
Receivables, net 134,204 138,712
Prepaid expenses and other current
assets 20,219 23,809
----------- -----------
Total current assets 788,214 667,872
Investments 136,982 164,254
Property and equipment, net 49,325 50,706
Goodwill and intangible assets, net 547,482 551,772
Other noncurrent assets 57,325 60,569
----------- -----------
$1,579,328 $1,495,173
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and other accrued
liabilities $49,863 $40,939
Accrued compensation and employee
benefits 27,766 25,839
Deferred revenue 38,476 31,584
----------- -----------
Total current liabilities 116,105 98,362
Senior convertible notes 400,000 400,000
Convertible subordinated notes 142,121 141,364
Other noncurrent liabilities 6,979 5,905
----------- -----------
Total liabilities 665,205 645,631
Stockholders' equity 914,123 849,542
----------- -----------
$1,579,328 $1,495,173
=========== ===========
FAIR ISAAC CORPORATION
REVENUES BY SEGMENT
For the Quarters and Six Months Ended March 31, 2004 and 2003
(In thousands)
(Unaudited)
Quarter Ended Six Months Ended
March 31, March 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Strategy machine solutions $103,587 $100,639 $206,848 $186,006
Scoring solutions 33,707 32,855 69,014 67,023
Professional services 24,616 19,828 47,108 40,093
Analytic software tools 11,336 5,276 19,617 12,208
--------- --------- --------- ---------
Total revenues $173,246 $158,598 $342,587 $305,330
========= ========= ========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion