Fair Isaac Corporation reports developments in credit scoring, applied analytics software and digital decisioning for lenders and other enterprises. The company is known for the FICO® Score, a consumer credit-risk measure used by top U.S. lenders and made available in other countries, and it generates news around modern score models such as FICO Score 10T, mortgage-risk analysis, and credit-card market data.
Recurring updates also cover the company's Scores and Software segments, including B2B and B2C scoring solutions, FICO Platform, Falcon Fraud Manager, Customer Communication Services, decision optimization, customer deployments, earnings releases, investor presentations and capital-market communications.
FICO has appointed Louise Lunn as the head of its new Global Analytics Delivery organization. Based in the UK, Lunn will manage data science teams across various regions, including EMEA, Latin America, Asia-Pacific, and North America. This strategic move aims to enhance innovation and expedite analytics solutions for top banks and other sectors. Lunn previously led EMEA analytics at FICO and has extensive experience in credit risk analytics. Her leadership is expected to drive the application of advanced analytics globally.
FICO (NYSE:FICO) reported a strong third fiscal quarter ending June 30, 2020, with net income of $64.1 million ($2.15 per share), up from $64.2 million ($2.12 per share) year-over-year. Non-GAAP net income rose to $76.7 million ($2.58 per share), compared to $75.6 million ($2.50 per share) last year. Revenue slightly decreased to $313.7 million from $314.2 million. Key segments showed varied performance: Applications revenue fell 15%, while Scores revenue surged 14%, and Decision Management Software revenue grew 22%. Free cash flow reached $99 million, significantly higher than $60.8 million last year.
FICO (NYSE:FICO) announced a new stock repurchase program, allowing the company to buy back up to $250 million of its common stock. This decision follows the completion of the previous repurchase program from July 2019 to July 2020. The open-ended program permits share repurchases in the open market and negotiated transactions, reflecting the company's commitment to enhancing shareholder value. FICO continues to leverage predictive analytics to drive profitability and operational decisions across various industries.
On July 28, 2020, FICO announced that Doug Clare, VP of fraud, compliance, and security solutions, will present at the U.S. Chamber of Commerce's Virtual Cyber Series. The series aims to address the increase in cyber threats amid the COVID-19 pandemic, focusing on securing remote workforces and digital environments. Clare will discuss assessing cyber risks in vulnerable supply chains and share best practices for third-party risk management. The first session is in Chicago on July 28 at 10:00 a.m. CST, followed by Minnesota on August 6 at 1:00 p.m. CST.
The International Bank of Azerbaijan (IBA) has successfully implemented the FICO® Siron® solution to enhance its capabilities in combating money laundering and terrorist financing. The integrated system, initiated in 2019 and executed by RDTEX, comprises three automated modules: customer behavior monitoring, risk screening, and real-time transaction screening. This initiative aims to minimize compliance risks and meet regulatory standards. IBA's managing director emphasized the importance of this solution in maintaining the bank's leadership and compliance in Azerbaijan's banking sector.
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FICO and Corinium have published a report indicating a significant rise in demand for AI, data, and digital tools amid the COVID-19 pandemic. Over 100 C-level executives were surveyed, revealing that 57% believe the pandemic has heightened the necessity for AI initiatives. Notably, 63% of organizations are scaling their AI capacity, yet ethical considerations remain a major barrier for 93% of respondents. Challenges also include building appropriate teams, integrating new technologies, and managing regulatory risks. The report highlights AI's potential to enhance competitive advantages as businesses adapt to the post-COVID landscape.
On July 9, 2020, FICO (NYSE:FICO) announced a free financial education event for Raleigh and Durham residents on July 16, 2020. The event, part of the "Score A Better Future" program, aims to enhance consumer understanding of financial health and FICO Scores, which impact 90% of lending decisions. Senator Thom Tillis will discuss the significance of financial literacy during the event. Partnering with Operation HOPE, FICO will offer one-on-one credit coaching sessions. Registration details are available online.
FICO has been awarded 13 new patents focused on fraud detection, AI, and decision management, bringing its total to 198 patents and 103 pending applications. Key innovations include technology enhancing the FICO® Falcon® Platform for fraud management and advancements in real-time analytics. These patents aim to improve fraud detection accuracy and reduce false positives, impacting various industries such as banking and telecommunications positively.
Grupo Fleury, a leading diagnostic medical company in Brazil, has optimized its demand planning tool, the Fleury Forecaster, using FICO's Xpress Platform. This enhancement has reduced the sales forecasting time from a month to just 30 minutes, leading to significant efficiency improvements and cost savings. The collaboration has resulted in a solution that integrates AI and business insights, boosting forecast accuracy and enabling better resource allocation. For its innovation, Grupo Fleury received the 2019 FICO® Decisions Award for AI and Machine Learning.