MR software and predictive analytics giant SPSS has reported second quarter revenues of $69.7m, down 8% from the previous year period. Revenues for the six months ended June 30, 2009, totalled $141.8m, also down 8% from the same period in 2008.
Since the close of the quarter, SPSS has announced IBM's bid to buy the firm for around $1.2bn. The Board of Directors have unanimously approved the merger, but shareholders are due tomeet on 2 October to vote on whether the sale should proceed.
In Q2 net income fell 12% to $6.2m, and overall, net income for the six months ended June 30, 2009, was $15.5m, down 3% from $16.1m in the 2008 period.
During the period, license revenues dropped 13% to $30.3m, while maintenance revenue inched up 1% to $33.6m.
Operating income was $11.3m or 16% of revenues, compared with $10.9m or 14% revenue in the same period in 2008.
The firm says this operating income and operating margin were the highest second quarter operating income and operating margin in the company's history, reflecting the benefits of cost initiatives and expense controls initiated late in 2008.
Second quarter G&A (general and administrative) expenses included one-time transaction costs of $1.2m, primarily related to the pending merger transaction.
Chairman, President and CEO Jack Noonan explained that Q2 is generally the firm's 'softest' quarter and that, as expected, during the period SPSS had confirmed a lower number of larger sales of combined products, particularly in Europe.
'While we are not satisfied with the 2009 second quarter results, the company remains in a financially solid position,' stated EVP and CFO Raymond Panza, 'In view of the announced pending merger transaction with IBM, the company is not providing guidance for the 2009 third quarter or balance of the year.'
Web site: www.spss.com .
All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.