Growth in New License Revenue, Increased Productivity Drive Solid SPSS 2007 Second Quarter, First Half Results

München, (PresseBox) - SPSS Inc. (Nasdaq: SPSS - News), a worldwide provider of predictive analytics software, today announced results for the quarter and six months ended June 30, 2007. The company reported second quarter revenues of $68.9 million, an increase of 9 percent from $63.5 million in the second quarter of 2006. New license revenues were $32.4 million, up 10 percent from $29.3 million in the same quarter last year. Operating income increased to $10.2 million, or 15 percent of revenues, from $6.0 million, or 9 percent of revenues, in the 2006 second quarter.

Diluted earnings per share (EPS) in the 2007 second quarter were $0.36, compared to $0.12 for the same quarter last year. Charges for stock-based compensation were $2.6 million and $2.2 million in the second quarter of 2007 and 2006, respectively.

The company continued to identify cost-saving initiatives and drive productivity improvements in the 2007 second quarter, including the expected closure of three facilities, all of which should be completed by year end. Operating results in the quarter included reorganization and related pre-tax charges of $0.7 million or approximately $0.02 EPS. Additional charges related to these initiatives will be recorded in the 2007 third and fourth quarters.

"We continued to see good sales momentum in the quarter, including double digit new license revenue growth in the United States and Europe, increased predictive application sales, and expanding partner influenced transactions," said SPSS president and CEO Jack Noonan. "Overall, the second quarter shows increasing demand for our predictive analytic tools and solutions with the continuation of bottom-line improvement."

Revenues for the six months ended June 30, 2007 totaled $139.1 million, an increase of 11 percent from $125.7 million for the same period in 2006. New license revenues were $67.3 million, up 14 percent from $59.2 million in the same period last year. Operating income increased to $22.3 million, or 16 percent of revenues, from $13.0 million, or 10 percent of revenues, in the 2006 six-month period. EPS was $0.75, compared to $0.35 in the same period a year ago. Charges for stock-based compensation were $4.5 million and $3.1 million in the first six months of 2007 and 2006, respectively. The effective income tax rate in the 2007 six-month period was 37 percent, compared to 38 percent in the same period last year.

Cash at June 30, 2007 was $278.4 million. Cash from operations increased to $34.7 million in the six months ended June 30, 2007 from $14.6 million in the same period in 2006.

Outlook and Guidance

"We are pleased with the benefits realized from operational improvements," said Raymond Panza, SPSS executive vice president and CFO. "During the 2007 second quarter, we initiated the process for closing R&D centers in the United Kingdom and Denmark, closed a small facility in the United States and announced organizational changes. At the same time, the company continues to focus on global productivity initiatives to improve operations and reduce costs."

Panza added, "In the 2007 third quarter we expect revenues of between $72.0 million and $74.0 million, with EPS in the range of $0.38 to $0.42, including an estimated expense of $0.06 for stock-based compensation. For the 2007 fiscal year, we reiterate our revenue guidance of between $285.0 million and $295.0 million. Based on our strong first half earnings results, we are increasing EPS guidance to a range of $1.53 to $1.63. Guidance for the 2007 fiscal year includes the $0.02 charge recognized in the second quarter for restructuring. Additional restructuring costs of approximately $3 million, expected to be incurred in the second half of 2007, are not included in the 2007 third quarter or 2007 fiscal year guidance. The full amount of these 2007 estimated restructuring charges are expected to be more than fully recovered in savings during 2008. EPS guidance for the 2007 fiscal year includes an estimated expense of $0.26 for stock-based compensation and an effective income tax rate of 37 percent."

Safe Harbor Statement
This press release contains forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements can be identified by phrases such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "could," "designed," "should be" and other similar expressions which denote expectations of future events rather than statements of fact. These forward-looking statements involve factors that are subject to risks and uncertainties. These risks and uncertainties, which may not be currently ascertainable and many of which are beyond the Company's control, may cause the Company's actual results, performance or achievements to be materially different than the results, performance or achievements expressed in or implied by the forward-looking statements. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission ("SEC"). Copies of these filings are available either on the SEC's website at www.sec.gov or from the Company's investor relations department. In light of these risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that any future results, performance or achievements will be attained. These forward-looking statements speak only as of the date on which they are made. The Company assumes no obligation to update the forward-looking statements contained in this press release.

IBM Deutschland Business Analytics

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. 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.

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