“We continue to drive excellent growth in our Scores business,” said Will Lansing, chief executive officer. “We’re adding to our recurring revenue stream through large cloud-based sales, and are efficiently managing costs to accelerate bottom-line growth.”
Revenues for the second quarter fiscal 2016 across each of the company’s three operating segments were as follows:
Applications revenues, which include the company’s preconfigured decision management applications and associated professional services, were $121.9 million in the second quarter compared to $134.4 million in the prior year quarter, a decrease of 9%. This was due to decreased license sales in Fraud Solutions compared to the prior year.
Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and the business-to-consumer (B2C) service, were $61.1 million in the second quarter, compared to $49.9 million in the prior year quarter, an increase of 22%. Revenue for B2B increased 14% and B2C revenue increased 42% from the prior year quarter.
Tools revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $23.6 million in the second quarter compared to $22.8 million in the prior year quarter, an increase of 4%, due primarily to increased professional services. Net income for the quarter totaled $23.1 million, or $0.72 per share, versus $18.9 million, or $0.58 per share, reported in the prior year period.
Second Quarter Fiscal 2016 Non-GAAP Results
Non-GAAP Net Income for the quarter was $35.1 million vs. $29.7 million in the prior year period. Non-GAAP EPS for the quarter was $1.09 vs. $0.91 in the prior year period. Free cash flow for the quarter was $33.6 million vs. $36.7 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.
The company is reiterating its previously provided guidance for fiscal 2016, which is as follows: Revenues in the range of US$860 million to US$870 million.
Source: FICO Earnings Release