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8-K - FORM 8-K - FAIR ISAAC CORP | c63130e8vk.htm |
Exhibit 99
Contacts:
Investors/Analysts: | Media: | |||
Steven Weber | Steve Astle | |||
FICO | FICO | |||
+1 800 213 5542 | +1 415 446 6204 | |||
investor@fico.com | stephenastle@fico.com |
FICO Announces Cost Reductions to Drive Profitable Growth
Management reaffirms revenue guidance, boosts net income and EPS projections
MINNEAPOLISFebruary 16, 2011FICO (NYSE:FICO), the leading provider of analytics and
decision management technology, today announced cost reductions as part of its ongoing
reengineering program designed to concentrate resources in areas with the greatest potential for
growth and profitability. The company is also revising upward fiscal 2011 earnings guidance.
The company expects to reduce operating expenses through staffing reductions, facility
consolidations, and reductions in discretionary spending. In connection with these actions, the
company expects to eliminate approximately 200 positions and record a pre-tax restructuring charge
of approximately $10 million in the second quarter of fiscal 2011, or $0.18 per share. Specific
actions include:
| Integrating and streamlining the sales and professional services organizations, eliminating redundant management layers while preserving client-facing staff | ||
| Concentrating research & development resources in areas with the greatest potential for growth | ||
| Continued rationalization of the product portfolio | ||
| Reducing finance, legal and human resources corporate expenses | ||
| Curtailing certain marketing activities and reducing discretionary costs |
Weve seen the beginnings of growth in recent quarters, and have chosen to maintain our cost
reengineering discipline in this improving environment in order to compete more aggressively and
win more deals, said CEO Mark Greene. Weve made it a priority to allocate resources toward
product innovation, client service and revenue-producing activity. While any staff reductions are
painful, were confident that these actions will allow us to bring the greatest possible value to
our clients and shareholders, and to ensure the companys long-term financial health and success.
Outlook
The company is providing the following revised financial guidance for fiscal 2011:
Previous Fiscal 2011 | Revised Fiscal 2011 | |||||||
Guidance | Guidance | |||||||
Revenue |
$620 million - $625 million | $620 million - $625 million | ||||||
GAAP Net Income |
$65 million - $67 million | $70 million - $73 million | ||||||
Non-GAAP Net Income, excluding
restructuring
charge |
Not applicable | $76 million - $80 million | ||||||
GAAP Earnings Per
Share (assumes 39.9
million outstanding
shares) |
$ | 1.63 - $1.68 | $ | 1.75 - $1.83 | ||||
Non-GAAP Earnings
Per Share,
excluding
restructuring
charge (assumes
39.9 million
outstanding shares) |
Not applicable | $ | 1.90 - $2.00 |
Company to Host Conference Call
The company will host a webcast today at 5:00 p.m. Eastern Time (4:00 p.m. Central / 2:00 p.m.
Pacific) to recap this announcement and answer questions about these actions. The call can be
accessed at www.FICO.com (follow the instructions on the Investor Relations page). A replay of the
webcast will be available through March 16, 2011. The webcast will also be distributed through the
Thomson StreetEvents Network to both institutional and individual investors. Individual investors
can listen to the call at www.fulldisclosure.com, Thomson/CCBNs individual investor portal,
powered by StreetEvents. Institutional investors can access the call via Thomsons
password-protected event management site, StreetEvents (www.streetevents.com).
About FICO
FICO (NYSE:FICO) transforms business by making every decision count. FICOs Decision Management
solutions combine trusted advice, world-class analytics and innovative applications to give
organizations the power to automate, improve and connect decisions across their
business. Clients
in 80 countries work with FICO to increase customer loyalty and profitability, cut fraud losses,
manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO
also helps millions of individuals manage their credit health through the www.myFICO.com website.
Learn more about FICO at www.fico.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release
that relate to FICO or its business are forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause actual results to differ
materially, including the success of the Companys Decision Management strategy and reengineering
initiative, the maintenance of its existing relationships and ability to create new relationships
with customers and key alliance partners, its ability to continue to develop new and enhanced
products and services, its ability to recruit and retain key technical and managerial personnel,
competition, regulatory changes applicable to the use of consumer credit and other data, the
failure to realize the anticipated benefits of any acquisitions, continuing material adverse
developments in global economic conditions, and other risks described from time to time in FICOs
SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2010. If any
of these risks or uncertainties materializes, FICOs results could differ materially from its
expectations. FICO disclaims any intent or obligation to update these forward-looking statements.
FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and
in other countries.
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