SPSS Reports Record Revenues

Software firm SPSS has achieved record revenues for the fourth consecutive quarter. The third quarter of 2005 saw a 9% revenue increase, driven by a 22% growth in new license revenues. Thanks to climbing revenue and falling expenses, net income for the quarter increased almost five-fold to more than $4m.

Third quarter results
Net revenues rose to $58.3m - a 9% increase from the $53.5m in the same period last year. New license revenues grew by 22% to $27.4m.

Operating income grew to $8.2m, or 14% of total revenues, compared with $1.2m, or 2% of total revenues, in the same quarter last year.

Operating expenses fell by 4% - from $52.3m to $50.1m.

As a result, net income rose by a huge 386% from $833,000 to just over $4m.

First nine months
Results for the year to date reflected the same pattern. Net revenues grew by 6%, with a 14% increase in new license revenues. Operating income was $19.4m ( 11% of total revenues), up from $2.9 million ( 2% of total revenues). Operating expenses fell by 4%, and net income rose by 418% - from just over $1.9m to $10.2m

Q3 Activities
During the third quarter of the year, SPSS signed software license or service agreements with several organisations, including the FBI, Giorgio Armani, Harley-Davidson, Saga Holidays, Tesco, and the US Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives.

The company also launched SPSS 14 - an enhanced version of the company's flagship software - during Q3 2005.

The future
The company expects revenues of between $61m and $64m for the fourth quarter of 2005, and has increased its revenue guidance for the full year from $230-235m to $235-238m.

SPSS President and CEO Jack Noonan says he is feeling 'pretty confident' about the business, adding that the company is 'very well positioned to take advantage of the heightened demand from leading organisations worldwide for predictive analytics'.

SPSS is online at www.spss.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.