Fair Isaac Corporation announced unaudited consolidated earnings results for the first quarter ended December 31 2017. For the quarter, the company reported total revenue was $235.321 million against $219.600 million a year ago. Operating income was $39.904 million against $34.927 million a year ago. Income before income tax was $33.957 million against $28.655 million a year ago. Net income was $27.299 million against $37.901 million a year ago. Diluted earnings per share were $0.86 against $1.16 a year ago. Net cash provided by operating activities was $28.777 million against $32.978 million a year ago. Purchases of property and equipment were $4.044 million against $4.319 million a year ago. Non-GAAP net income was $41.145 million against $33.492 million a year ago. Non-GAAP diluted earnings per share were $1.30 against $1.03 a year ago. Free cash flow was $24.733 million against $28.041 million a year ago. The effective tax rate was about 20% this quarter.

The company revised earnings guidance for the fiscal 2018. The company expects revenue of $990 million. GAAP net income expected $136 million or $4.34 per diluted share against $119 million or $3.71 per diluted share of previous guidance. Non-GAAP net income expected $191 million or $6.09 per diluted share against $171 million or $5.32 per diluted share of previous guidance. The company expects a reduction in tax expense of $14.0 million as a result of a tax rate change from tax reform legislation. The company expects Operating margin to be between 26.5% and 28% for the full year. It anticipate a reduction in tax rate will result in a savings in fiscal 2018 of about $14 million. The company still evaluating the long-term impact of the tax reform but expect cash rate to be in the low to mid-20s over the remainder of 2018.