Fair Isaac Corporation (FICO) has reported a 9.06 percent fall in profit for the quarter ended Mar. 31, 2015. The company has earned $18.87 million, or $0.58 a share in the quarter, compared with $20.75 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.67 million, or $0.91 a share compared with $28.69 million or $0.81 a share, a year ago. Revenue during the quarter grew 11.67 percent to $207.11 million from $185.46 million in the previous year period. Gross margin for the quarter contracted 291 basis points over the previous year period to 65.72 percent. Total expenses were 83.39 percent of quarterly revenues, up from 79.11 percent for the same period last year. That has resulted in a contraction of 428 basis points in operating margin to 16.61 percent.
Operating income for the quarter was $34.40 million, compared with $38.74 million in the previous year period.
"We drove growth throughout all of our segments, particularly in Applications," said Will Lansing, chief executive officer. "I'm also pleased with the strong quarter in our Consumer Scores business, and encouraged by the strength we're seeing in our B2B Scores driven by new originations."
Operating cash flow drops significantly
Fair Isaac Corporation has generated cash of $43.28 million from operating activities during the first half, down 42.36 percent or $31.81 million, when compared with the last year period. The company has spent $66.80 million cash to meet investing activities during the first six months as against cash outgo of $4.30 million in the last year period.
Cash flow from financing activities was $14.50 million for the first six months as against cash outgo of $46.77 million in the last year period. It has made net debt repayment of $112 million. It has spent net of $100.71 million on repurchase of common stocks.
Cash and cash equivalents stood at $86.84 million as on Mar. 31, 2015, down 19.72 percent or $21.34 million from $108.18 million on Mar. 31, 2014.
Working capital drops significantly
Fair Isaac Corporation has witnessed a decline in the working capital over the last year. It stood at $45.67 million as at Mar. 31, 2015, down 49.51 percent or $44.79 million from $90.46 million on Mar. 31, 2014. Current ratio was at 1.18 as on Mar. 31, 2015, down from 1.50 on Mar. 31, 2014.
Days sales outstanding were almost stable at 69 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 60 days for the quarter from 30 for the same period last year.
Debt increases substantially
Fair Isaac Corporation has witnessed an increase in total debt over the last one year. It stood at $658 million as on Mar. 31, 2015, up 36.23 percent or $175 million from $483 million on Mar. 31, 2014. Total debt was 53.21 percent of total assets as on Mar. 31, 2015, compared with 41.03 percent on Mar. 31, 2014. Debt to equity ratio was at 1.73 as on Mar. 31, 2015, up from 0.91 as on Mar. 31, 2014.
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