FICO Fiscal Q2 2014FICO reported revenues of $185.5 million for the quarter (ending March 31st, 2014) as compared to $179.3 million reported in the prior year period, an increase of 3%.

“Our year-over-year revenues increased as we drove growth in our Scores and Tools businesses,” said Will Lansing, chief executive officer.  “Our Applications revenues were flat, but the large bookings this quarter will increase our backlog in that segment. At the same time, we are holding the line on expenses and delivering increased cash flows.”

Revenues for the second quarter fiscal 2014 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$115.6 million in the second quarter compared to $117.2 million in the prior year quarter, a decrease of 1%.  This was due to declines in license revenue in Banking Fraud.
  • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and the myFICO®business-to-consumer (B2C) service, were $47.9 million in the second quarter compared to $44.1 million in the prior year quarter, an increase of 9%. The B2C revenue increased 11% and the B2B revenue increased 8% from the prior year quarter, mainly due to a true-up associated with an underpayment of royalties over a multi-year period.
  • Tools revenues, which include Blaze Advisor®, Xpress Optimization, Models and related professional services, were $22.0 million in the second quarter compared to $18.0 million in the prior year quarter, an increase of 22%, due to increased license sales of Model Central and Optimization solutions.

Outlook: The company is reiterating its previously provided guidance for fiscal 2014, which follows predicting revenue to be in the range of $763 million –  $773 million

Source:  FICO Earnings Release