Fair Isaac Corporation (NYSE:FICO) Q1 2015 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 05:00 pm ET

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Fair Isaac Corporation (NYSE:FICO) Q1 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fair Isaac Corporation Quarterly Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

I will now turn the call over to Steve Weber. You may begin your conference.

Executive
Steven Weber

Thank you, Mike. Good afternoon, and thank you for joining FICO's First Quarter Earnings Call. I'm Steve Weber, Vice President of IR, and I'm joined today by our CEO, Will Lansing; our CFO Mike Pung; and our EVP of Scores, Jim Wehmann.

Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison to the prior quarter in order to facilitate understanding of the run rate of our business.

(Forward-Looking Cautionary Statements)

This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and Regulation G schedule issued today for a reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measure. The earnings release and Regulation G schedule are available on the IR page of the company's website at fico.com or on the SEC's website at sec.gov. A replay of this webcast will be available through January 29, 2016.

Now, I'll turn the call over to Will Lansing.

Executive
William Lansing

Thanks, Steve, and thank you, everyone, for joining us for our first quarter earnings call. I'll briefly summarize our financial results for this quarter and then I'll discuss some of our strategic initiatives and their expected impact.

In our first quarter, we reported revenues of 190 million, an increase of 3% over the same period last year. We delivered $14 million of GAAP net income and GAAP earnings of $0.43 per share, down 15% and 8%, respectively from the prior year. We delivered $23 million of non-GAAP net income, down 14% from last year and non-GAAP EPS of $0.68 per share, a decrease of 7% from the same period last year.

Our Applications segment was up 3% over the same period last year and our Tools segment was up 19%. Our Scores segment was down 7% compared to last year, when we had a large global FICO Score deal. These results were in line with our internal expectations coming off last quarter's record results.

We continue to invest in areas, where we see the greatest potential with the goal being to drive predictable, sustainable growth. Let me give you a few examples. First, we announced this month that we have acquired TONBELLER; an innovator in risk-based financial crime prevention and compliance. This acquisition combines FICO fraud detection and analytics leadership with TONBELLER's capabilities to address the rapidly growing demand for integrated, enterprise-class financial crime and compliance solutions.

Now on the face of it, this may appear to be a simple technology tuck-in, giving us better capability in the