SPSS Reports 2008 First Quarter Results
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."
Safe Harbor Statement
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.
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, 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.