Fair Isaac Corporation (FICO) has reported a 96.98 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $37.90 million, or $1.16 a share in the quarter, compared with $19.24 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $33.49 million, or $1.03 a share compared with $32.11 million or $0.99 a share, a year ago.
Revenue during the quarter grew 9.76 percent to $219.60 million from $200.08 million in the previous year period. Gross margin for the quarter contracted 79 basis points over the previous year period to 68.13 percent. Total expenses were 84.10 percent of quarterly revenues, down from 84.59 percent for the same period last year. This has led to an improvement of 49 basis points in operating margin to 15.90 percent.
Operating income for the quarter was $34.93 million, compared with $30.83 million in the previous year period.
"We had a great start to our fiscal 2017," said Will Lansing, chief executive officer. "We achieved strong top-line growth throughout the company, and are well positioned to continue our momentum."
For fiscal year 2017, Fair Isaac Corporation projects revenue to be $925 million for financial year 2017. The company expects net income to be $126 million. It forecasts adjusted net income to be $158 million. The company forecasts diluted earnings per share to be $3.92. The company forecasts diluted earnings per share to be $4.92 on adjusted basis.
Operating cash flow drops significantly
Fair Isaac Corporation has generated cash of $32.98 million from operating activities during the quarter, down 34.86 percent or $ 17.65 million, when compared with the last year period.
The company has spent $4.32 million cash to meet investing activities during the quarter as against cash outgo of $4.29 million in the last year period.
The company has spent $13 million cash to carry out financing activities during the quarter as against cash outgo of $41.27 million in the last year period.
Cash and cash equivalents stood at $88.10 million as on Dec. 31, 2016, down 2.88 percent or $2.61 million from $90.71 million on Dec. 31, 2015.
Working capital declines
Fair Isaac Corporation has witnessed a decline in the working capital over the last year. It stood at $35.03 million as at Dec. 31, 2016, down 21.20 percent or $9.43 million from $44.46 million on Dec. 31, 2015. Current ratio was at 1.14 as on Dec. 31, 2016, down from 1.18 on Dec. 31, 2015.
Days sales outstanding went down to 66 days for the quarter compared with 68 days for the same period last year.
At the same time, days payable outstanding went up to 45 days for the quarter from 31 for the same period last year.
Debt remains almost stable
Total debt of Fair Isaac Corporation remained almost stable for the quarter at $620.67 million, when compared with the last year period. Total debt was 50.69 percent of total assets as on Dec. 31, 2016, compared with 50.94 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 1.47 as on Dec. 31, 2016, when compared with the last year.
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