SPSS Reports Record First Quarter
SPSS Inc. (Nasdaq: SPSS), a worldwide provider of predictive analytics software, today announced results for the first quarter ended March 31, 2007.
The company reported total revenues of $70.2 million, a 13 percent increase from $62.2 million in the 2006 first quarter, with diluted earnings per share (EPS) of $0.39, compared to $0.24 in the prior year first quarter. New license revenues were $35.0 million, up 17 percent from $29.9 million in the 2006 first quarter. Operating income increased to $12.1 million, or 17 percent of revenues, from $7.0 million, or 11 percent of revenues, in the same quarter last year. Charges for share-based compensation were $0.06 and $0.03 in the first quarters of 2007 and 2006, respectively.
At March 31, 2007, cash totaled $256.1 million, including proceeds from the company’s recent convertible debt offering less cash used for a concurrent share repurchase. Cash provided by operating activities in the quarter was $21.3 million, up from $8.1 million for the same period in 2006.
“This quarter was a solid start to the year,” said Jack Noonan, SPSS president and CEO. “We saw double-digit growth in new license revenues with higher sales in all major geographies, along with increased growth from both our predictive tools and deployment solutions. We continued to strengthen our leadership position in predictive analytics by delivering significant recognized value to our customers.”
Outlook and Guidance
“Our focus is on building upon the successes in this quarter by continuing to increase revenues and achieve further productivity improvements,” said Raymond Panza, SPSS executive vice president and CFO. “Next quarter we expect revenues to be between $68.0 million and $70.0 million with EPS in the range of $0.30 to $0.35. This guidance includes an expected expense for share-based compensation of approximately $0.08.”
He continued, “For the 2007 fiscal year, we are reiterating previous revenue guidance of between $285.0 million and $295.0 million. However, we are increasing previous 2007 fiscal year EPS guidance from $1.20 to $1.30 to a new range of $1.40 to $1.50. This increase reflects both higher earnings realized in the first quarter, as well as the expected benefits from the recently completed convertible debt offering and the related repurchase of common stock. EPS guidance for the 2007 annual period includes an estimated expense of approximately $0.29 for share-based compensation. EPS guidance for the quarter and fiscal year periods does not consider any potential charges resulting from possible cost management initiatives. Guidance for the 2007 fiscal year assumes an effective income tax rate of 38 percent.”
Share / Note Repurchase Authorized
The SPSS Board of Directors has authorized the company to repurchase up to a maximum of two million shares of its issued and outstanding common stock and up to $20.0 million principal amount of its issued and outstanding convertible notes. These repurchases are not mandatory and will be made from time to time based on the availability of alternative investment opportunities and market conditions. This authorization extends until December 31, 2008.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.