814547--11/26/2008--FAIR_ISAAC

related topics

{product, market, service}

{system, service, information}

{condition, economic, financial}

{customer, product, revenue}

{stock, price, operating}

{property, intellectual, protect}

{acquisition, growth, future}

{regulation, government, change}

{operation, international, foreign}

{personnel, key, retain}

{provision, law, control}

{tax, income, asset}

{product, liability, claim}

{cost, operation, labor}

We derive a substantial portion of our revenues from a small number of products and services, and if the market does not continue to accept these products and services, our revenues will decline. If we are unable to access new markets or develop new distribution channels, our business and growth prospects could suffer. If we are unable to develop successful new products or if we experience defects, failures and delays associated with the introduction of new products, our business could suffer serious harm. We rely on relatively few customers, as well as our contracts with the three major credit reporting agencies, for a significant portion of our revenues and profits. Certain of our large customers have been negatively impacted by the current financial crisis. If these customers continue to be negatively impacted, or if the terms of these relationships otherwise change, our revenues and operating results could decline. We rely on relationships with third parties for marketing, distribution and certain services. If we experience difficulties in these relationships, our future revenues may be adversely affected. If we do not engage in acquisition activity to the extent we have in the past, we may be unable to increase our revenues at historical growth rates. If we engage in acquisitions, significant investments in new businesses, or divestitures of existing businesses, we will incur a variety of risks, any of which may adversely affect our business. The occurrence of certain negative events may cause fluctuations in our stock price. Our products have long and variable sales cycles. If we do not accurately predict these cycles, we may not forecast our financial results accurately, and our stock price could be adversely affected. We typically have revenue-generating transactions concentrated in the final weeks of a quarter, which may prevent accurate forecasting of our financial results and cause our stock price to decline. The failure to recruit and retain additional qualified personnel could hinder our ability to successfully manage our business. The failure to obtain certain forms of model construction data from our customers or others could harm our business. We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed. If we are subject to infringement claims, it could harm our business. Breaches of security, or the perception that e-commerce is not secure, could harm our business. Protection from system interruptions is important to our business. If we experience a sustained interruption of our telecommunication systems, it could harm our business. Risks Related to Our Industry Our ability to increase our revenues will depend to some extent upon introducing new products and services. If the marketplace does not accept these new products and services, our revenues may decline. If we fail to keep up with rapidly changing technologies, our products could become less competitive or obsolete. If our competitors introduce new products and pricing strategies, it could decrease our product sales and market share, or could pressure us to reduce our product prices in a manner that reduces our margins. Legislation that is enacted by the U.S. Congress, the states, Canadian provinces, and other countries, and government regulations that apply to us or to our customers may expose us to liability, affect our ability to compete in certain markets, limit the profitability of or demand for our products, or render our products obsolete. If these laws and regulations require us to change our current products and services, it could adversely affect our business and results of operations. Our revenues depend, to a great extent, upon conditions in the consumer credit, financial services and insurance industries. If our clients industries continue to experience a downturn, it will likely harm our business, financial condition or results of operations. Risk Related to External Conditions Continuing material adverse developments in global economic conditions, or the occurrence of certain other world events, could affect demand for our products and services and harm our business. In operations outside the United States, we are subject to unique risks that may harm our business, financial condition or results of operations. Our anti-takeover defenses could make it difficult for another company to acquire control of Fair Isaac, thereby limiting the demand for our securities by certain types of purchasers or the price investors are willing to pay for our stock. If we experience changes in tax laws or adverse outcomes resulting from examination of our income tax returns, it could adversely affect our results of operations.

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814547--11/26/2008--FAIR_ISAAC_CORP