10-KPeriod: FY2011

FAIR ISAAC CORP Annual Report, Year Ended Sep 30, 2011

Filed November 18, 2011For Securities:FICO

Summary

Fair Isaac Corporation (FICO) reported revenues of $619.7 million for the fiscal year ended September 30, 2011, a slight increase from the previous year. The company operates across three segments: Applications, Scores, and Tools, with the Applications segment, particularly fraud solutions, being a significant revenue driver. While revenue growth was modest, the company highlighted improved operating income due to strategic resource allocation and cost management, part of its ongoing reengineering initiative. FICO's business model relies heavily on transactional and maintenance revenues, with a substantial portion of its customer base in the banking and insurance industries. The company continues to invest in its Decision Management strategy and new product development, balancing these investments with expense management to maintain profitability.

Financial Highlights

55 data points
Beta

Revenue

$619.68M

69.9% Gross Margin

Net Income

$71.56M

11.5% Net Margin

EPS (Diluted)

$1.79

Total Assets

$1.13B

Cash & Equivalents

$135.75M

Free Cash Flow

$122.14M

Financial Statements
Beta
Revenue$619.68M
Cost of Revenue$186.47M
Gross Profit$433.21M
R&D Expenses$62.13M
SG&A Expenses$223.62M
Operating Expenses$492.35M
Operating Income$127.34M
Interest Expense$32.36M
Net Income$71.56M
EPS (Basic)$1.82
EPS (Diluted)$1.79
Shares Outstanding (Basic)39.36M
Shares Outstanding (Diluted)39.99M

Key Highlights

  • 1Total revenues for fiscal year 2011 reached $619.7 million, a 2% increase year-over-year.
  • 2Operating income grew by 12% to $127.3 million in fiscal year 2011, reflecting successful reengineering and expense management efforts.
  • 3The Applications segment, driven by fraud and origination solutions, saw a 4% revenue increase, while the Scores segment experienced a 2% decrease, and the Tools segment grew by 3%.
  • 4International revenues continued to grow, representing 37% of total revenues in fiscal year 2011.
  • 5The company repurchased $96.3 million of its common stock during fiscal year 2011.
  • 6FICO maintained a strong balance sheet with $241.6 million in cash, cash equivalents, and marketable securities at the end of fiscal year 2011.

Frequently Asked Questions

FICO operates through three main segments: Applications (pre-configured decision management applications and related services), Scores (business-to-business and business-to-consumer scoring solutions, including the FICO Score), and Tools (software tools for clients to build custom decision management applications).

In fiscal year 2011, FICO reported total revenues of $619.7 million, an increase of 2% from fiscal year 2010. Operating income increased by 12% to $127.3 million, driven by effective cost management and strategic initiatives.

The FICO Score is a core product within the Scores segment and is a significant contributor to FICO's revenue. While the report doesn't break out specific revenue for the FICO Score itself, it mentions that the Scores segment generated $168.6 million in revenue in fiscal year 2011, and that FICO Scores are used in most U.S. credit decisions.

FICO's primary client industries are banking (including consumer credit) and insurance, which accounted for 78% of its revenues in fiscal year 2011. Other significant industries served include healthcare and retail.