8-KEarnings & ResultsExhibits & Filings

FAIR ISAAC CORP 8-K Report, Financial Results (Jan 25, 2006)

Filed January 25, 2006For Securities:FICO

Summary

Fair Isaac Corporation (FICO) filed an 8-K on January 25, 2006, to report its financial results for the quarter ended December 31, 2005. The primary purpose of this filing is to furnish the press release containing these results, which is included as Exhibit 99.1. Investors should note that the press release includes a non-GAAP financial measure, "EPS before Share-Based Compensation." The company explicitly states its rationale for excluding stock-based compensation, citing a desire to compare current results with prior periods and previous guidance, as well as the non-cash nature of these expenses. While FICO reconciles this non-GAAP measure to GAAP EPS, investors are cautioned that it may not be comparable to similar measures used by other companies and should not be considered a substitute for GAAP financial performance.

Key Highlights

  • 1Fair Isaac Corporation (FICO) reported financial results for the quarter ended December 31, 2005.
  • 2The filing is primarily a furnishing of a press release (Exhibit 99.1) containing the financial results.
  • 3The press release introduces or highlights the non-GAAP financial measure "EPS before Share-Based Compensation."
  • 4The company excludes share-based compensation to facilitate comparisons with prior periods and previous guidance.
  • 5FICO acknowledges that "EPS before Share-Based Compensation" is a non-cash expense.
  • 6The company provides a reconciliation from the non-GAAP measure to GAAP EPS within the press release.
  • 7Investors are advised that this non-GAAP measure may not be comparable to those of other companies and is not a substitute for GAAP measures.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Fair Isaac Corporation's financial results for the quarter ended December 31, 2005, by furnishing the accompanying press release as an exhibit.

"EPS before Share-Based Compensation" is a non-GAAP financial measure that excludes the expense related to stock-based compensation. FICO uses this measure to allow for easier comparison of its current financial performance to historical results and previous company guidance, as well as because it is a non-cash expense.

No, investors should not rely solely on this non-GAAP measure. The company itself states that non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with Generally Accepted Accounting Principles (GAAP). It is important to review the GAAP EPS and the reconciliation provided.

The detailed financial results are presented in the press release dated January 25, 2006, which is included as Exhibit 99.1 to this 8-K filing.