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» Fair Isaac Corporation F3Q09 (Qtr End 6/30/09) Earnings Call Transcript
In order to provide additional information to investors, we will use certain non-GAAP measures on this call. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures entitled regulation G disclosure is available on the investor page of our website under the presentations tab. A replay of the webcast will be available through December 3.I will now turn the call over to Mark Greene. Mark Greene Thanks, Mike and good afternoon. We’ll proceed today as usual in three parts. First, I will summarize the quarter results and assess our business in light of current market conditions. Tom Bradley will then provide further financial details. And then finally, I’ll discuss our business and fiscal 2011 guidance before we take your questions. For the fourth quarter of fiscal 2010, revenue was $155 million, consistent with prior quarter results. GAAP earnings per share in the quarter were $0.38, down sequentially but up 9% year-over-year and they included a $0.03 per share charge for one-time restructuring activities. GAAP earnings per share for the entire 2010 fiscal year totaled $1.42, an increase of 6% from fiscal 2009. Bookings in our fourth quarter, which are an indicator of future revenue, were $106 million, up 66% sequentially. Now, let me break out our quarterly performance by the three segments of our decision management portfolio. First, the application segment consists of business software used by clients to help make smarter decisions over customer life cycles. Revenue from these applications totaled $96 million, up 5% sequentially. We saw improved performance across most of our applications with impressive results from our marketing, customer management and fraud products. The marketing solutions saw continued strong growth driven by our retail action manager product, with volume increases at several of our customers. Bookings and marketing solutions totaled $20 million in the quarter, the largest amount in almost three years. Customer management sub segment recorded $12 million of bookings in the quarter. The largest amount in two years, including several sizable triad license deals in the EMEA and Latin America.
The fraud area consisting of our insurance fraud manager and the Falcon product for banking also had a solid quarter with $26 million in bookings including an enterprisewide license with the leading European bank for the latest version of our Falcon product version 6.Total fraud bookings for the 2010 fiscal year exceeded $70 million, the largest in several years. And finally, in this application segment, during the quarter, we signed an agreement with PNC Financial Services Group, one of the nation's largest diversified financial services organization to provide an integrated solution that supports the bank's growth strategy. While terms of this agreement cannot be disclosed, it was one of the largest transactions in FICO’s history. When delivered with the FICO solution – when delivered the FICO solution, we will provide the bank a connected learning and decision capability that allows PNC to grow its customer base and expand share of wallet. Turning now to our score segment, which consists of predictive analytics used to assess risk. Overall scores revenue was $42 million in the quarter, down 10% from the prior quarter, in which we had benefited from a one-time true-up of several million dollars in credit bureau royalties. We track the score's business in two sub segments B2B, which are scores sold to financial institutions and B2C, which is scores sold to consumers at myFICO.com website. The B2B sub segment was essentially flat when adjusted for the prior quarter true-up. We have now seen five quarters of this stability, following the steep fall-off that we observed during recession. In this quarter, we observed the following on B2B. First, a 22% increase in the volume of scores used for marketing and an 8% increase in the volume of scores used in originations. Read the rest of this transcript for free on seekingalpha.com