Summary
Fair Isaac Corporation (FICO) reported its results for the quarter and nine months ended June 30, 2015. Total revenues increased by 6% for the nine-month period to $606 million, driven by growth in all segments, particularly Scores and Tools. The acquisition of TONBELLER in January 2015 contributed to revenue growth in the Applications segment. Net income for the nine months decreased by 9% to $53.2 million compared to the prior year, primarily due to increased cost of revenues and research & development expenses. The company's cash position remains strong, with $84.4 million in cash and cash equivalents as of June 30, 2015, and ample capacity under its revolving credit facility to fund operations and strategic initiatives. FICO continues to invest in growth initiatives, including cloud computing and SaaS offerings, and strategic acquisitions. The company also returned capital to shareholders through its stock repurchase program, repurchasing $130.7 million worth of stock in the nine-month period. The company's outlook remains positive, with management expecting continued revenue growth and stable operating expenses as a percentage of revenue in the coming quarters.
Financial Highlights
52 data points| Revenue | $209.37M |
| Cost of Revenue | $66.20M |
| Gross Profit | $143.16M |
| R&D Expenses | $25.61M |
| SG&A Expenses | $74.64M |
| Operating Expenses | $172.31M |
| Operating Income | $37.05M |
| Interest Expense | $7.36M |
| Net Income | $19.91M |
| EPS (Basic) | $0.64 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 31.12M |
| Shares Outstanding (Diluted) | 32.36M |
Key Highlights
- 1Total revenues for the nine months ended June 30, 2015, increased by 6.7% to $606.0 million compared to the same period in the prior year.
- 2Net income for the nine months ended June 30, 2015, decreased by 9.1% to $53.2 million, impacted by increased operating expenses.
- 3The acquisition of TONBELLER in January 2015 contributed to revenue growth in the Applications segment.
- 4The Scores segment showed strong growth, with a 23% revenue increase in the quarter and a 7% increase in the nine-month period, largely driven by the FICO® Score Open Access program and the partnership with Experian.
- 5The company repurchased $130.7 million of its common stock during the first nine months of fiscal year 2015.
- 6As of June 30, 2015, FICO had $84.4 million in cash and cash equivalents and $272.0 million in borrowings outstanding under its revolving line of credit.
- 7Operating expenses, particularly Cost of Revenues and Research & Development, increased significantly in the nine-month period, impacting profitability.