FICO quarterly income and revenue up
FICO, an analytics and decision management software provider, has reported a rise in revenue and income for its third fiscal quarter.
For the period ended 30 June 2016, net income totalled $35.0 million, or $1.08 per share, versus $19.9 million, or $0.62 per share, reported in the prior year period. Non-GAAP net income for the quarter was $46.8 million versus $32.3 million in the prior year period.
Revenue also did well. The company reported revenues of $238.8 million for the quarter as compared to $209.4 million reported in the prior year period.
Will Lansing, chief executive officer at FICO, says: “The strategic initiatives we’ve been pursuing are continuing to bear fruit, and we’re leveraging that into accelerated cash flow and earnings.”
In terms of its three operating segments, applications revenues and scores revenue had healthy revenue rises of 11% and 10% respectively. Tools revenues, which include Blaze Advisor, Xpress Optimization and related professional services, were $36.1 million in the third quarter compared to $26.5 million in the prior year quarter, an increase of 36%.
Looking to the future, FICO is “updating its previously provided guidance for fiscal 2016”. The outlook for revenue remains the same – $860 million to $870 million.
However, GAAP net income is now higher; at $98 million to $102 million, compared to the previous figures of $94 million to $98 million. Non-GAAP net income is also a bit higher. The outlook is now $145 million to $149 million, from the previously forecasted $144 million to $148 million.
There were some notable deals for FICO this year.
It acquired US cyber risk security scoring firm QuadMetrics. The deal will help FICO further develop its Enterprise Security Score, which ranks an organisation’s level of cybersecurity risk.
FICO also teamed with and tech consultancy firm Capgemini to provide analytic solutions in financial services. The alliance will provide FICO’s risk and fraud management products through Capgemini’s consulting and integration services in North America.