SPSS GmbH Software

Pressemeldung April 2008

SPSS Reports 2008 First Quarter Results

München, 29. April 2008 - SPSS Inc., a global provider of Predictive Analytics software and solutions, today announced results for the quarter ended March 31, 2008.

The Company reported total revenues of $78.2 million, up 12 percent from $70.2 million in the first quarter of 2007. Net income was $9.8 million, up 21 percent from $8.2 million in the first quarter last year, with diluted earnings per share (EPS) of $0.51, a 31 percent increase from $0.39 in the 2007 first quarter. New license revenues were $38.4 million, up 10 percent from $35.0 million in the first quarter of 2007. Operating income increased 15 percent to $13.9 million, or 18 percent of revenues, from $12.1 million, or 17 percent of revenues, in the same quarter last year. Charges for share-based compensation were $0.07 and $0.06 in the first quarters of 2008 and 2007, respectively. Approximately 60 percent of total revenues in the 2008 first quarter came from outside of the United States. Excluding the effects of currency exchange rates, total revenues were up 5 percent over the 2007 first quarter.

"Given the economic environment, we were pleased to see new license revenue growth of 13 percent in the United States, improved maintenance revenues, and higher service revenues primarily driven by increased training deliveries," said Jack Noonan, SPSS chairman, CEO and president. "Once again, the diversity of our product line, customer base, and geographic markets enabled us to perform in an uncertain economy. Sales growth in the first quarter was strongest in the government and education sectors. At the same time, an increased number of lower-priced transactions and partnership arrangements also contributed to our success."

Noonan added, "Our good start in 2008 was supported by our multiple distribution channels and disciplined financial focus. We believe that we are well-positioned to meet the short-term economic challenges, while driving long-term profitable growth."
At March 31, 2008, cash and cash equivalents totaled $294.6 million. Cash provided by operating activities in the quarter was $14.1 million, after the payment of a $7.4 million year-end 2007 accrued expense related to the Company's share repurchase program, compared to $21.3 million for the same period in 2007. During the first quarter of 2008, the Company continued its share repurchase program, acquiring 853,800 shares at a cost of $27.9 million. Pursuant to the previously announced Board authorization allowing the Company to repurchase up to 2 million shares of its issued and outstanding common stock, 539,000 shares remain available for repurchase under this program. Repurchases are not mandatory and will be made from time to time based on the availability of alternative investment opportunities and market conditions.

Outlook and Guidance
"The Company continues to drive revenue growth on an increasingly efficient basis," said Raymond Panza, SPSS executive vice president and CFO. "Even with larger investments in marketing activities and higher non-cash charges for amortization expense of capitalized software, first quarter 2008 operating income and margin improved over the same quarter last year. Contributing to this increased profitability were lower R&D costs, a result of initiatives to consolidate software development centers, and expand operations in China. Such previous and ongoing productivity improvements should continue to drive further growth in operating income and margins."

Panza continued, "In the 2008 second quarter, we expect revenues of between $74.0 million and $78.0 million, with EPS in the range of $0.40 to $0.48. Looking further ahead based on our first quarter results, we are raising guidance for the 2008 fiscal year. We now expect revenues of between $310.0 million and $320.0 million, with EPS in the range of $1.90 to $2.00. Guidance for the second quarter and full year assumes charges for share-based compensation of $0.08 and $0.26 per share, respectively, and an expected effective income tax rate of 39 percent."