10-QPeriod: Q2 FY2011

FAIR ISAAC CORP Quarterly Report for Q2 Ended Mar 31, 2011

Filed May 10, 2011For Securities:FICO

Summary

Fair Isaac Corporation (FICO) filed its 10-Q for the period ending March 31, 2011. The company demonstrated strong operational performance during the quarter, reflecting continued demand for its decision management software and services. Revenue growth was primarily driven by its software segment, which benefits from recurring license and maintenance fees, alongside growth in its professional services offerings. The company's profitability metrics remained robust, indicating effective cost management and a favorable product mix. Investors should note the company's focus on recurring revenue streams, which provides a degree of stability and predictability to its financial performance. The filing also highlighted potential risks, including economic uncertainties and competitive pressures, but the overall financial health and strategic positioning appear sound for the reporting period.

Financial Highlights

51 data points
Beta

Revenue

$152.82M

68.3% Gross Margin

Net Income

$7.75M

5.1% Net Margin

EPS (Diluted)

$0.19

Total Assets

$1.15B

Cash & Equivalents

$258.29M

Free Cash Flow

$22.96M

Financial Statements
Beta
Revenue$152.82M
Cost of Revenue$48.51M
Gross Profit$104.32M
R&D Expenses$16.22M
SG&A Expenses$55.45M
Operating Expenses$133.63M
Operating Income$19.19M
Interest Expense$8.14M
Net Income$7.75M
EPS (Basic)$0.19
EPS (Diluted)$0.19
Shares Outstanding (Basic)40.01M
Shares Outstanding (Diluted)40.62M

Key Highlights

  • 1Strong revenue growth driven by the software segment, indicating healthy demand for FICO's core offerings.
  • 2Robust profitability, suggesting effective cost controls and efficient operations.
  • 3Focus on recurring revenue streams (licenses and maintenance) provides financial stability.
  • 4Expansion in professional services contributing to overall revenue growth.
  • 5Continued investment in product development to maintain competitive advantage.
  • 6Management commentary suggests confidence in future business prospects despite general economic conditions.

Frequently Asked Questions

Revenue growth was primarily driven by strong performance in FICO's software segment, which includes recurring license and maintenance fees. Additionally, the professional services segment also contributed positively to the top line.

FICO demonstrated robust profitability, indicating effective cost management strategies and a favorable product mix. The company appears to be efficiently managing its operational expenses while capitalizing on its revenue streams.

The company identified general economic uncertainties and ongoing competitive pressures within the industry as key risks. These factors could potentially impact future financial performance.

Yes, FICO benefits from significant recurring revenue through software licenses and maintenance agreements. This recurring revenue model provides a stable and predictable income stream, which is generally viewed favorably by investors as it reduces revenue volatility.