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Executives

John D. Emerick, Jr. - Vice President, Corporate Development and Treasurer

Dr. Mark N. Greene - Chief Executive Officer

Charles M. Osborne - Executive Vice President and Chief Financial Officer

Michael H. Campbell – Chief Operating Officer

Analysts

Carter Malloy – Stephens Inc.

Michael Nemeroff – Wedbush Morgan Securities

Thomas – No company listed

Mike [Lattimore] – [North Plant]

Fair Isaac Corporation (FIC) F2Q09 Earnings Call April 22, 2009 5:00 PM ET

Operator

Welcome everyone to the FICO second quarter 2009 conference call. (Operator Instructions) Mr. Emerick you may begin the conference.

John Emerick, Jr.

Good afternoon everyone. This is John Emerick of FICO. Let me thank you for joining us to review results from FICO’s second quarter fiscal 2009 ended March 31. Joining me today are CEO Mark Greene; CFO, Tom Bradley and retiring CFO, Chuck Osborne. A replay of this call will be available on our website through May 22.

The forward-looking statements made on this call and in today’s news release should be viewed with caution. These statements represent our guidance and outlook and are subject to risk and uncertainties, which could cause actual results to differ materially. This includes statements concerning our business strategies and reengineering plan and the actual expense, revenue and net income impact associated therewith. We assume no obligation to update such forward-looking statements. Our product roadmaps and similar marketing materials should also be considered forward-looking and subject to change. Further information concerning various factors and risks that could cause actual results to differ from today’s forward-looking statements can be found on our annual report on Form 10K for the year ended September 30, 2008, and our quarterly report on form 10Q for the period ended December 31, 2008, both filed with the Securities and Exchange Commission. Please refer to the forward-looking statements and risk factors portions of those reports which are available on www.sec.gov and on www.FICO.com.

We will use certain non-GAAP financial measures on this call including free cash flow and operating expenses excluding restructuring charges. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures entitled Regulation G Disclosure is now available on the Invest page of our website under the presentations tab.

Now, I’ll turn the call over to Mark Greene.

Dr. Mark N. Greene

Thanks John. Good afternoon. We will proceed today in three parts. First, I will summarize the quarterly results and assess our business in view of current market conditions. Second, we will get further financial details from Tom Bradley, our incoming CFO who joined the company on April 8. Third, I will discuss our strategy and business outlook for the balance of the fiscal year. Tom and I will then be joined by our retiring CFO, Chuck Osborne for the question-and-answer session.

Now to the numbers. Revenue in the second quarter fiscal 2009 was $159.3 million, down slightly from the prior quarter and substantially from the prior year. Earnings per share from continuing operations were $0.37, over both the prior quarter and prior year. These results reflect the continuation of two trends that we discussed on our last conference call. First, market conditions remain very challenging as many of our clients have shrunk their technology budgets or at least paused spending in the face of the global recession.

Second, given this difficult revenue environment we continue to aggressively manage expenses and have again been able to generate healthy earnings. Let me elaborate on these points by discussing the performance of the four segments of our decision management portfolio. Namely, analytics which are the scores used to assess the risk of various transactions or entities; Applications, which use these analytics to help businesses make smarter decisions throughout a customer lifecycle; Software tools, such as rules engines in which the applications are based; Finally, the services segment consisting of consulting and system integration work around our product.

Starting with analytics, our analytic revenue fell by $3 million or 9% from the prior quarter. This decline is generally consistent with the seasonality that we have experienced in prior years. Within this result are some puts and takes. On the positive side, mortgage volumes are up strongly due to refinance activity and may continue to show good recovery if interest rates remain attractive. On the negative side, scores used for managing credit card portfolios, which is the largest slice of our scoring revenue, remain depressed as banks trim their existing card holder base and focus on cross selling instead of new account origination. We have also seen large declines in auto lending volumes, which now appear to be bottoming out. Overall, we view the analytics segment as a good proxy for the health of the U.S. economy. Our scoring revenue is a coincident indicator of the business cycle. It got thick in the middle of last year when the economy turned down and we expect it to recover as the general economy does.

Next, in applications revenue fell by $1 million or 1% from the prior quarter. As we noted last quarter the recession is causing clients to conserve cash, restricting investments in large technology projects and subjecting business cases to greater scrutiny. These same forces also lead clients to a greater appreciation of our decision management approach since it provides a way for them to manage risks systemically across their various product lines. As a result, we see a growing number of our fees for applications to originate and manage customer accounts, improve collections and prevent fraud.

We are particularly excited by the strength and quality of the pipeline that is developing for our latest decision management product, which is Falcon Fraud Manager version 6 that ships next week. We are tracking opportunities worth over $100 million in both new and upgrade business for this Falcon Version 6 product. We are excited about these prospects but remain cautious about the speed at which we will be able to win this business given our clients’ budget challenges and the lengthy sales cycle.

Turning now to tools. Tools revenue declined by $3 million or 23%. We believe this reflects the lumpiness of that license-based business. We look for the tools business to return to normal levels in the quarters ahead helped by the fact that our Blaze and Express products remain respectively the leading rules management and optimization products both in market share and functionality.

Finally, our services revenue grew by $3 million or 11% sequentially, partially thanks to a one-time adjustment related to recognition of previously deferred revenue. Our clients continue to value the expertise of FICO’s consultants but they also seek to minimize their own costs by slowing down previously contracted work. We also note several clients moving work in-house, reflecting an industry trend towards reduced use of outside labor during this down cycle.

Now for further financial details, let me introduce FICO’s new Chief Financial Officer, Tom Bradley. Tom, we are delighted you are on board. We welcome you. Over to you please.

Tom Bradley

Thanks Mark. I wanted to start with telling you how thrilled I am to join you and your team here at FICO. Coming from a career in the financial services industry and looking at the products and services we have here at FICO, I am really excited about how we can provide the risk management, risk selection and other decision management solutions to our customers in financial services and particularly how important these capabilities are as they fix their balance sheet and move forward in this challenging market.

I would second like to thank Chuck Osborne. He leaves behind for me a very talented finance team led by Mike Pung and John Emerick, that will make my life easier and I also inherited a nice clean set of financial statements. Kudos to you Chuck and good luck in your retirement.

Finally, for everybody on the line I would just like to say that if you are interested enough to tune into this call I am interested in meeting you. I look forward to doing so in the next couple of months.

Now lets go to the results. As Mark mentioned, revenue in the quarter was $159.3 million, a slight decrease from last quarter. Our revenue has moved at a pace consistent with the decline in consumer lending activity, the consolidation of credit card portfolios and the lower level of IT spending in our four focus industries; banking, insurance, retail and healthcare.

Recurring revenue for the quarter represented 76% of total revenues, an increase from the 71% for the same period last year and consistent with last quarter. This high percentage of recurring revenue is a testament to the strength of our Falcon and TRIAD brands whose revenues have remained steady in this difficult environment.

Consulting and implementation revenues were 19% of total revenues this quarter versus 20% in the same period last year. Finally, one-time or license revenues are 4% of total revenue, a decrease from the 9% reported last year.

This quarter 32% of our total revenue came from outside the United States compared to 35% a year ago. The continued strengthening of the U.S. dollar drove reported revenue down by $7 million on a constant exchange rate basis from a year ago. Bookings of $47 million created $11 million of current period revenue, a 23% yield. This is about half the amount of bookings from the same period last year and a 10% decline from last quarter. We experienced reduced levels of bookings as financial institutions continue to evaluate when to start or restart investments in new products.

Moving to expenses, we have worked diligently over the past year to reduce costs. Total operating expenses in the quarter were $129 million, a decrease of 22% against the year-ago period as well as a 10% decrease from last quarter’s expense level. This quarter we booked a small pre-tax restructuring charge of $187,000. This compares to the $6 million charge in the same period a year ago and $8 million that we charged in the last quarter. Excluding these restructuring charges, operating expenses declined by 19% from the prior year and 5% from last quarter.

These savings cut across all expense categories but we are intentionally maintaining investment in research and development at about 12% of revenue.

Now looking at the bottom line. Our ability to deliver consistent earnings reflects the resilience of our business model. Income from continuing operations in the quarter was $18 million, a 50% increase from last quarter and a 2% increase from the same quarter last year. These amounts include the after-tax impact of the previously discussed restructuring charges. This resulted in earnings per share from continuing operations of $0.37 for the quarter compared to $0.36 last year and $0.25 last quarter. This quarter also includes a $400,000 or $0.01 loss on the discontinued operations line. The resulting total earnings per share is $0.36 this quarter compared to $0.28 last year and $0.25 last quarter.

The effective tax rate for the quarter was about 27% driven by a higher amount of taxable income in areas outside of the U.S. with lower effective tax rates and the reinstatement of the R&D tax credit in October of 2008.

We think these results are evidence of the significant efforts we have undertaken to deliver the highest possible profitability in this environment without impairing our revenue generating activity. Furthermore, our financial discipline and related re-engineering efforts will position us extremely well when scoring volumes and other revenues rebound.

I would next like to talk about cash flow and the balance sheet. We define free cash flow as cash flow from operations less capital expenditures and dividends paid. The free cash flow for the quarter was $46 million or 29% of revenue compared to $15 million or 8% of revenue in the same period last year. This is our strongest quarterly free cash flow performance in two years. Furthermore, our fiscal year-to-date free cash flow is $76 million or 24% of revenue compared with $55 million or 14% of revenue from the prior year six month period. This improvement is driven by our previously discussed expense reductions and from effectively managing our accounts receivable. Even in this challenging business environment we have reduced our day sales outstanding from 73 days as of our fiscal year-end to 59 days at the end of this quarter.

We are continuing to keep this cash on our balance sheet. This approach reduces our net debt and provides us with maximum financial flexibility in an uncertain economy. This leads to a few points highlight the strength of our liquidity position. We now have $331 million in cash and marketable securities on the balance sheet plus $235 million available against our revolving credit facility. This gives us $566 million in total liquidity. Our debt remains unchanged from last quarter consisting of a $295 million balance on our revolver and $275 million in outstanding notes. The ratio of our total net debt to EBITDA is now at 1.6 times, well below the covenant level of three times. Importantly, we do not have any maturities of this debt until the middle of 2011.

Finally, we did not repurchase any shares in the open market this past quarter. Our fully diluted share count is essentially unchanged at 48.8 million shares. We remain committed to returning capital to shareholders through stock repurchases over the long-term and have $148 million remaining under our existing share repurchase authorization.

With that I turn the call back to Mark.

Dr. Mark Greene

In this concluding section I would like to update you on the health of our business and our prospects going forward. Let me begin with three corporate updates. First, concerning the management team we are delighted to have two talented leaders join our executive branch recently. In addition to Tom Bradley who joined us this month as CFO from Zurich Financial, we are very pleased that Deborah Kerr came on board in January from HP as our Chief Product and Technology Officer. With these two senior appointments I feel very good about our executive team. We have the talent and discipline to weather this difficult period while also positioning our company for growth.

Second, concerning our corporate identity, we have unified the company around the FICO brand as the name that best resonates in the market place. Legally we are still Fair Isaac Corporation but we are doing business as FICO. It is a strong brand and one that we will be careful to be good stewards of. You will see the FICO brand used increasingly in product names, marketing collateral, thought leadership articles, etc.

Thirdly, concerning innovation I am pleased that our efforts to harness the creativity of our 300 analytic scientists and researchers are starting to pay off. We are now delivering important innovations to the market. In analytics we have rolled out several timely scoring innovations including a new FICO score tailored to the mortgage industry, a score trend service that lets banks track credit quality over time and just last week a mortgage recovery initiative which we call FICO MRI, Mortgage Recovery Initiative, that lets both lenders and homeowners participate in loan workout activities to prevent foreclosure. The MRI solution uses our analytics to screen applicants under the new federal mortgage relief programs and to flag homeowners at risk of future defaults.

Each of these innovations is designed to bring our expertise to bear on a topical issue in the national agenda. We are now similarly focused on new innovations for the credit card industry, where the next wave of delinquencies is forming. In applications we are shipping now the first generation of the new decision management products that have been years in the making. Our collections product, known as Debt Manager 7, began shipping in December.

Our fraud product for banks, Falcon 6, ships this month. The version for insurers, Insurance Fraud Manager, ships in July. These applications are important building blocks in our vision of connected decisions, helping financial firms to serve their clients and manage risk holistically, both across multiple financial instruments and over the lifetime of their consumer relationships.

Finally, in tools we are delivering innovative products that make it easier for clients to manage through turbulent times. We are now shipping a new decision graphing tool with our TRIAD and Blaze products that helps financial managers to visualize and update their business rules in real time which is very useful in dynamic applications such as credit line management.

Later this quarter we will ship the next version of our optimization product that is 40% faster in helping financial institutions to optimally price products and determine ways to maximize consumer profitability.

So I feel good about our ability to innovate in ways that produce relevant, commercial offerings which is a reason why we continue to invest significantly in R&D, even as we trim spending on other corporate overhead functions.

So where does this lead us in the months ahead? Namely the second half of our fiscal 2009 which ends in September. Let me comment on our prospects in each business area. Starting with analytics, our analytics revenue is largely driven by our scoring business which remains hard to predict. Our bureau partners report some resilience in scoring volumes in March, especially in the mortgage space but we remain concerned about deterioration in the credit card space which cuts both ways for us. Banks are shutting or consolidating accounts which does hurt our transactional revenue but they are also looking for more help in credit line management and related analytics, which helps.

Overall, we see early signs that the decline in scoring volumes is abating but it is too early to call the bottom. We do remain cautiously optimistic about our scoring revenues once the economy recovers.

Turning to applications, application revenue seems likely to be flat until financial firms resume their technology spending. We are heartened by the strong and growing pipeline for new decision management products, particularly the fraud products that I mentioned but many of these opportunities will take time to progress. Tools revenue is expected to recover to normal levels in the months ahead as firms pursue do-it-yourself technology projects.

The net here is that the revenue picture seems to be largely moving sideways but remains both murky and volatile. We continue to consult closely with our clients about their own financial outlooks in hopes of establishing improved visibility that will allow us to provide revenue guidance. In the interim, we believe it appropriate to provide guidance on the thing we can control; expenses, as we remain focused on delivering solid earnings. We have previously guided we expected operating expenses to decline from $612 million last fiscal year to $535 million in this fiscal 2009 excluding restructuring charges.

Our ongoing cost re-engineering work now suggests slightly better performance than that so we are updating our full year opex guidance to $525 million. We are providing this update to emphasize our ongoing commitment to producing strong cash flow and delivering solid earnings.

Let me conclude with a personal perspective on our company. FICO’s mission is to be the leader in decision management, transforming business by making every decision count. We have pioneered the use of predictive analytics to help companies make smarter decisions and materially improve their business outcomes. That value proposition has never been more relevant than today. Our clients understand the power of our analytics, our applications and our tools.

Over 500 of those clients gathered last month in New York for our interact user conference. They attended seminars on credit line management, best practices in mortgage collections and optimal lending strategies under the TARP system. They told us repeatedly how relevant FICO is to their business. While many of these clients have trimmed their technology spending in this rough economy they also tell us that they understand and need our connected decisions capability and that they intend to buy from FICO as their financial health allows.

So while the near-term will likely remain challenging, I am more optimistic than ever about the eventual pay off from our decision management strategy.

Before we move to the question-and-answer period, I would like to thank our outgoing CFO, Chuck Osborne for his five years of leadership and management contributions at FICO. As previously announced, Chuck is preparing to retire this summer and he is now working closely with Tom in a smooth transition of our finance functions. I want to express my thanks to Chuck for his service to our company and to invite him to say a few parting words. Chuck?

Charles Osborne

Thank you Mark for your kind comments. This is my last earnings call for FICO and I am going to miss the discussions and repartee with our colleagues in the financial sector. I feel very good about what we have been able to accomplish in financing and the protection of earnings for FICO over the last five years. We certainly have our challenges today especially in light of the difficult economic conditions for our financial institution customers. Those conditions have not dampened my enthusiasm and optimism for what FICO brings to the market place.

I am still reminded of a statement by one of our largest shareholders who shared with me that one of the reasons he loved his investment in FICO was its opportunity to bring value to the market through the ingenious use of mathematics and analytics. “Literally making something out of nothing,” were the words he used to describe what our mathematicians, analyst and developers do to create value for our customers. I think that opportunity exists even more today than it did when that shareholder said those words.

I am very thankful to my colleagues in FICO especially Mike Pung and John Emerick who have both been instrumental in helping build the finance function at FICO. With the arrival of Tom Bradley and with the continued help of the finance team here I have no doubt that the finances at FICO are in good hands.

Finally, my sincere thanks to our shareholders for their support of FICO over the past five years. It has been an honor and pleasure to serve your corporation.

John, I will turn it back over to you.

John Emerick, Jr.

Thanks Chuck. This concludes our prepared remarks. We are ready now to take your questions. Operator, please open the line for questions.

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from the line of Carter Malloy – Stephens Inc.

Carter Malloy – Stephens Inc.

In looking at your scoring revenues can you just help me reconcile the difference between what you are seeing and the bureaus? Both of your public bureau friends there have reported down low single digit scoring revenues versus you down 21%. I’m just trying to understand the difference there.

Dr. Mark Greene

We have to make sure this is a sequential or year-over-year question?

Carter Malloy – Stephens Inc.

Year-over-year.

Dr. Mark Greene

A couple of the bureaus I think are pursuing more than low single digits when you do year-over-year. I have seen a few of them reporting single digits on a sequential basis. A partial answer to your question is it has to do with mix. We are quite heavily weighted in our scoring business to the credit card segment. It is about 70% of our revenue. That of course is the challenged part of the scoring business. Some of the other bureaus that you have seen reporting a little bit more, for instance the mortgages which has been growing, but for us mortgages is about 10-11% of our business. So the mix is not working to our favor at the moment but of course that same mix may benefit us when the card business recovers when the economy does.

Carter Malloy – Stephens Inc.

Did you say it was 70%?

Dr. Mark Greene

About 70% on credit cards. About 10-11% on mortgages. The balance is autos and other forms of consumer credit.

Carter Malloy – Stephens Inc.

Has your card exposure gotten larger? You showed a slide at Analyst Day that said it was 60%.

Dr. Mark Greene

It has been in the mid 60’s, so it may not be quite up to 70 but it is within a few points of 65% or something like that. No, nothing has essentially changed.

Carter Malloy – Stephens Inc.

Tom, can you give us the size of the one-time gain in your services?

Tom Bradley

In which?

Carter Malloy – Stephens Inc.

In professional services. You had a one-time gain in the quarter.

Tom Bradley

$3 million revenue adjustment.

Carter Malloy – Stephens Inc.

What are your expectations for the tax rate going forward?

Tom Bradley

We think a marginal rate of about 30% is our expectation for the rest of the year.

Operator

The next question comes from Michael Nemeroff – Wedbush Morgan Securities.

Michael Nemeroff – Wedbush Morgan Securities

Mark, when do you expect the scoring revenue to up tick? You are in a unique position to see a lot of data on the U.S. consumer and in your prepared remarks you kind of mentioned that you didn’t really quite feel ready to call the bottom yet. Do you still feel that the U.S. consumer is still as troubled as it was during last quarter or are you kind of seeing maybe the signs of bottoming out with the U.S. consumer?

Dr. Mark Greene

We are seeing signs of bottoming out but I don’t know that we have touched bottom yet. The best answer I can give you is sort of what I said before, which is the more we study our scoring business the better we understand it to be a very close indicator of exactly where the economy is. It is a coincident indicator. So when you see unemployment…well actually unemployment is [inaudible]. When you see other signs of economic recovery you should expect to see our scoring business recover sort of right away. It got sick right away when the economy did and it will recover right away. We are not seeing that yet, but we are seeing as others have reported a slowing in the rate of deceleration.

Michael Nemeroff – Wedbush Morgan Securities

On the bookings that you showed this quarter of $46.8 million, is the 99.2 a comparable number on continuing ops or is there a number that you could give us where we could make a more useful comparison to the continuing operations?

Tom Bradley

I don’t have a better number for you. It is largely comparable. There has been some suggestion in the industry and you see minor signs of this ourselves that there is a change in some buying behavior where customers are buying what were long engagements and smaller pieces but I don’t have any hard numbers to offer you there. So I would say that these are comparable numbers.

Dr. Mark Greene

Specifically it is continuing ops. It doesn’t include anything that was sold.

Michael Nemeroff – Wedbush Morgan Securities

You used to give or Chuck used to provide this waterfall analysis that was helpful and we don’t get that anymore. Of the $46.8 million could you tell us what amount of that $46.8 million will turn into revenue this fiscal year for the next two quarters?

Tom Bradley

We turned about $10 million in the first quarter of that $46 million. About another $10 million in the next two quarters. So $20 million total in this fiscal year.

Michael Nemeroff – Wedbush Morgan Securities

In terms of the expenses, the two highest margin businesses which are tools and scoring those were down a little bit more than I was expecting this quarter and I was kind of curious how you are going to continue to keep the margins and the expenses down relative to those two high margin businesses showing a little more weakness than expected?

Dr. Mark Greene

I think we need to correct the impression about margins. You are right that scoring is our highest margin or what we more broadly call analytics, scoring plus a few other things. However, tools is not right up there with it. Tools is a lower margin business. Somewhere in between those two is applications. So the margin projections that we have here are on the assumption that our applications business holds up and begins to grow over time.

Michael Nemeroff – Wedbush Morgan Securities

You mentioned normal levels in that tools business, the analytical software tools. Is normal levels approximately what you posted maybe in Q1?

Dr. Mark Greene

That’s right. Q1 and I think that is similar to the prior couple of quarters before that as well. We think we saw a blip last time having to do with transactions that are lumpy and didn’t quite fall in line in time.

Michael Nemeroff – Wedbush Morgan Securities

So 13-14 is approximately normal levels?

Dr. Mark Greene

That’s the right range, yes.

Operator

The next question comes from Thomas – No company listed.

Thomas – No company listed

One quick follow-up to the previous question. What has happened to average contract length over the last year on those bookings?

Dr. Mark Greene

Roughly constant.

John Emerick, Jr.

It is about the same as what it was last quarter for our total bookings.

Thomas – No company listed

But that is down year-over-year isn’t it? Your average contract length is down year-over-year isn’t it? Wasn’t it down last quarter?

John Emerick, Jr.

It is up from last quarter to slightly over 2 years. This is for our total bookings. Last quarter it was about constant with where it was in the fourth quarter. It has ticked up a little bit but it is really operating right about in that 2-year range.

Thomas – No company listed

How is the MyFico.com business performing? Has that been able to maintain healthy production? We haven’t heard you talk about it much lately.

Dr. Mark Greene

There are two things there. You will be aware that two months ago one of the partners whose scores had been available on MyFico.com, Experian, elected to withdraw from that relationship. That has had some impact. Not material but measurable. Low millions of dollars, $1-2 million per quarter on the revenue there. Otherwise, however, we continue to enjoy good growth in consumer traffic and subscription rates. So that is a business that previously had been on a 10% revenue growth trajectory. You will net out some of the loss that we expect going forward due to the Experian withdrawal and we will take a pause in that growth but the long-term trend in My Fico continues to be a growth trend as consumers find greater interest in tracking their own personal finances.

Operator

The next question comes from Mike [Lattimore] – [North Plant].

Mike [Lattimore] – [North Plant]

At the Analyst Day you mentioned kind of a break out between acquisition versus origination versus maintenance in your scoring business. Have those percentages changed at all among the three categories?

Dr. Mark Greene

No, they have held up roughly as they have.

Mike [Lattimore] – [North Plant]

Are you seeing, you mentioned the consumer monitoring their scores more. Did you notice any sort of material increase in banks monitoring their portfolios more in the quarter?

Dr. Mark Greene

In a few places yes. There are a handful of banks that are beginning especially in our car portfolios to take what happened previously quarterly checks on their consumers moving to monthly. It is not yet a broad based trend but there are some banks that are looking more closely at especially troubled accounts and therefore pulling more scores.

I might take this opportunity to also mention something else about the MyFico business relative to your question and the prior one. In this mortgage initiative that I referred to that was announced last week, the Mortgage Recovery Initiative (MRI), that leverages quite deeply our MyFico website and infrastructure. So that is a re-use, if you will of in terms of the structure that we have for consumers now applied to the mortgage space. So we expect further traffic coming as a result of that.

Mike [Lattimore] – [North Plant]

With regard to the expense forecast for $525 million you mentioned that your cost re-engineering efforts were a little ahead of schedule. Is that the main influence or is it just being a little bit more cautiously aware as well?

Dr. Mark Greene

A little of both.

Mike [Lattimore] – [North Plant]

You also mentioned that on score you get a little bit of a seasonal weakness in your fiscal second quarter. Are we in an environment where we can have normal seasonal patterns here or is seasonality not the biggest influence on the business?

Dr. Mark Greene

It is hard to use the word normal to describe anything going on in this environment. I will say that the step down, the minor decline that we saw in scoring is consistent with what we have seen if you were to apply seasonal factors from the past. I don’t want that answer to be interpreted as saying our scoring business is returning to normal, but I think we saw a normal seasonal variation last quarter.

John Emerick, Jr.

We are all done everyone. Thank you very, very much. We appreciate all your time. If anybody has any other questions you know how to get in touch with us. Thank you.

Operator

This concludes today’s conference call. You may now disconnect.

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Source: Fair Isaac Corporation F2Q09 (Qtr End 03/31/09) Earnings Call Transcript
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