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New License Revenue Growth Drives Increase in Operating Income

München, 8. November 2007 - SPSS Inc. (NASDAQ:SPSS), a worldwide provider of predictive analytics software, today announced results for the quarter and nine months ended September 30, 2007. The company reported record third quarter revenues of $72.3 million, a 12 percent increase from $64.7 million in the third quarter of 2006. New license revenues were $34.5 million, up 15 percent from $30.0 million in the third quarter of 2006. Operating income increased 29 percent to $12.5 million, or 17 percent of total revenues, from $9.6 million, or 15 percent of total revenues, in the third quarter of 2006. Reported operating income for the third quarter of 2007 includes $1.2 million in charges related to the previously announced R&D facility closures and consolidation.

Diluted earnings per share (EPS) in the 2007 third quarter were a record $0.41, compared to $0.28 for the same period last year. These results included charges for share-based compensation of $1.0 million and $1.9 million in the third quarter of 2007 and 2006, respectively.

"In the third quarter, we saw growth in all major geographies driven by solid new license revenue," said SPSS president and CEO Jack Noonan. "Contributing to this improvement were strong sales of our statistics and data mining products, as well as several larger predictive analytic solutions deals. With the benefits of predictive analytics increasingly recognized in the marketplace along with the proven value of SPSS products, we remain positive about the future."

Revenues for the nine months ended September 30, 2007 totaled $211.4 million, an 11 percent increase from $190.4 million in the same period last year. New license revenues were $101.8 million, up 14 percent from $89.2 million in the 2006 nine-month period. Operating income increased 54 percent to $34.8 million, or 16 percent of total revenues, from $22.6 million, or 12 percent of total revenues, for the same period in 2006. Operating income in 2007 includes charges of $1.9 million for restructuring and R&D facility closures. Charges for share-based compensation were $5.5 million and $5.0 million in the first nine months of 2007 and 2006, respectively. EPS for the 2007 nine-month period was $1.16, compared to $0.63 for the same period in 2006. The effective income tax rate for the 2007 nine-month period was 39 percent, compared with a 37 percent effective tax rate in the same period last year.

Cash at September 30, 2007 was $297.1 million, up from $140.2 million on December 31, 2006. Cash flow from operations for the nine months ended September 30, 2007 totaled $51.5 million compared with $26.0 million for the same period last year.

Outlook and Guidance

"Strong revenue growth combined with the benefits from our ongoing productivity improvement efforts resulted in record earnings and operating margin for the 2007 third quarter despite the charges for restructuring and facility closures," said Raymond Panza, SPSS executive vice president and CFO. "Looking ahead, we remain focused on building upon the momentum of our revenue growth and further operational efficiencies to ensure we continue to capitalize on the increasing market adoption of predictive analytic technologies."

Panza added, "We expect revenues for the 2007 fourth quarter of between $74.0 million and $76.0 million with reported EPS in the range of $0.34 to $0.40. EPS for the 2007 fourth quarter includes estimated charges of $0.06 for share-based compensation and $0.09 related to the previously announced R&D facility closures that will be completed by year-end. For the 2007 fiscal year, the total costs recognized relative to the restructuring and R&D facilities consolidations are estimated to be $5.0 million. It is expected that the resulting savings realized during 2008 will exceed those restructuring costs. Earnings guidance assumes an effective income tax rate of 39 percent for fourth quarter and fiscal year."




Über SPSS
SPSS Inc. (Nasdaq: SPSS) ist ein führender Anbieter von Predictive Analytics-Software und -Lösungen. Die Predictive Analytics-Technologie des Unternehmens unterstützt Organisationen dabei, Geschäftsprozesse zu optimieren, da sie täglich zu treffende Entscheidungen vorausschauend treffen können. Durch die Integration von Predictive Analytics in das Tagesgeschäft werden Unternehmen zum Predictive Enterprise - und sind so in der Lage, Entscheidungen zu steuern und zu automatisieren, um Geschäftsziele und einen messbaren Wettbewerbsvorteil zu erreichen. Mehr als 250.000 Kunden aus der Wirtschaft, dem Hochschulbereich und dem öffentlichen Dienst vertrauen auf die SPSS-Technologie, um Erträge zu erhöhen, Kosten zu senken, wichtige Prozesse zu verbessern und um Betrug zu erkennen und zu vermeiden.

Zu den Kunden von SPSS in Deutschland zählen große Unternehmen und Institutionen wie GfK AG, Bundesagentur für Arbeit, Deutsche Telekom AG, Vattenfall Europe-Hamburg AG, MSD Sharp & Dohme GmbH , Commerzbank AG, Yamaha Motor Deutschland GmbH, Barmer Ersatzkasse, DekaBank Deutsche Girozentrale, OBI GmbH & Co. Franchise Center KG, TUI AG, AOL Deutschland GmbH & Co. KG, O2 Germany GmbH & Co. KG, Allianz Versicherungs AG, AMB Generali Holding AG, DBV Winterthur Versicherung AG, Gruner + Jahr AG & Co.KG, Raiffeisenlandesbank Niederösterreich Wien, IT Austria und KTM Sportmotorcycle AG.

SPSS Inc. mit Hauptsitz in Chicago, Illinois, wurde 1968 gegründet. Die deutsche Niederlassung besteht seit 1986. SPSS beschäftigt in Deutschland und Österreich derzeit rund 70 Mitarbeiter. Weitere Informationen finden sich unter www.spss.de.


Kontakt zum Unternehmen:
Michaela Kagerer, SPSS GmbH Software
Theresienhöhe 13 Tel: 089 / 489 074 0
80339 München Fax: 089 / 448 3115
E-Mail: mkagerer@spss.com / www.spss.de

Für weitere Presse-Informationen wenden Sie sich bitte an:
Kathrin Wittmann, LEWIS Communications GmbH
Baierbrunnerstr. 15 Tel.: 089 / 173019-0
81379 München Fax: 089 / 173019-99
E-Mail: kathrinw@lewispr.com

SafeHarborStatement
In addition to historical information, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation, statements regarding the Company's expectations, beliefs, intentions or future strategies that are signified by the words "expects," "anticipates," "intends," "believes," "estimates" or similar language. All forward-looking statements included in this document are based on information available to the Company on the date hereof. The Company cautions investors that its business and financial performance and the matters described in these forward-looking statements are subject to substantial risks and uncertainties. Because of these risks and uncertainties, some of which may not be currently ascertainable and many of which are beyond the Company's control, actual results could differ materially from those expressed in or implied by the forward-looking statements. The potential risks and uncertainties that could cause results to differ materially include, but are not limited to: the Company's ability to predict revenue, the Company's ability to respond to rapid technological changes, a potential loss of relationships with third parties from whom the Company licenses certain software, fluctuations in currency exchange rates, the impact of new accounting pronouncements, increased competition and risks associated with product performance and market acceptance of new products. A detailed discussion of other risk factors that affect the Company's business is contained in the Company's Annual Reports on Form 10-K, particularly under the heading "Risk Factors." The Company does not intend to update these forward-looking statements to reflect actual future events.


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