Summary
Fair Isaac Corporation (FICO) reported revenues of $838.8 million for fiscal year 2015, a 6% increase from the prior year. While revenue growth was positive across all segments, operating income saw a 15% decrease to $137.5 million, primarily due to increased restructuring costs, investments in cloud computing, and higher professional services delivery costs. The company's core business remains strong, with significant contributions from its Applications, Scores, and Tools segments. FICO's strategic focus on expanding its Decision Management (DM) strategy, including cloud-based solutions and acquisitions like TONBELLER, positions it for continued growth. Despite increased operating expenses, FICO continued to return value to shareholders through share repurchases and dividends. The company's strong cash flow from operations provided liquidity, and management expressed confidence in its ability to fund ongoing initiatives and upcoming debt obligations. Investors should note the ongoing investments in cloud and SaaS capabilities, which, while impacting short-term profitability, are aimed at long-term market leadership and revenue expansion.
Financial Highlights
53 data points| Revenue | $838.78M |
| Cost of Revenue | $270.54M |
| Gross Profit | $568.25M |
| R&D Expenses | $98.82M |
| SG&A Expenses | $300.00M |
| Operating Expenses | $701.28M |
| Operating Income | $137.50M |
| Interest Expense | $29.15M |
| Net Income | $86.50M |
| EPS (Basic) | $2.75 |
| EPS (Diluted) | $2.65 |
| Shares Outstanding (Basic) | 31.40M |
| Shares Outstanding (Diluted) | 32.61M |
Key Highlights
- 1Total revenues increased by 6% to $838.8 million in fiscal year 2015, driven by growth across all segments: Applications (+4%), Scores (+11%), and Tools (+7%).
- 2Operating income decreased by 15% to $137.5 million, with operating margins declining from 21% to 16% due to increased restructuring and investment costs.
- 3The company repurchased approximately 1.7 million shares for $130.7 million in fiscal year 2015, demonstrating a commitment to shareholder returns.
- 4FICO completed the acquisition of TONBELLER, a provider of financial crime and compliance solutions, to enhance its fraud detection and analytics offerings.
- 5The Scores segment saw a significant 11% revenue increase, largely driven by the expansion of the FICO® Score Open Access program and a new partnership with Experian.
- 6International revenues accounted for 40% of total revenues, highlighting FICO's global presence and revenue diversification.
- 7The company continues to invest heavily in Research and Development, with R&D expenses increasing by 18% to $98.8 million, primarily focused on cloud computing and SaaS initiatives.