SPSS Q3 Earnings More Than Quadruple

Predictive analytics software firm SPSS reported marginally higher revenue for the quarter ended Sept. 30, but earnings leaped more than four-fold compared with the same period last year.

SPSS's third-quarter sales reached $58.3 million, the company said, up from $53.5 million in the third quarter of 2004. Third-quarter earnings seriously outpaced sales growth, however, rising 386 percent to $4.05 million, up from $833,000 a year ago.

Operating income for the most recent quarter was $8.2 million, or 14 percent of total revenue for the period. In the same quarter last year, SPSS achieved operating income of $1.2 million, or 2 percent of total revenue.

New customer wins for SPSS in the third include the Centers for Disease Control and Prevention, the Federal Bureau of Investigation, Harley-Davidson Motor Co., Humana, LexisNexis and the United States Naval Special Warfare Command.

The company's third-quarter earnings were boosted only a "minor amount" by sales of SPSS 14.0, a new upgrade of the vendor's flagship analytics software, a spokesman said. SPSS 14.0 debuted in August.

The firm forecasts revenue of between $61 million and $64 million in the fourth quarter. "The company is very well positioned to take advantage of the heightened demand from leading organizations worldwide for predictive analytics," said SPSS president and CEO Jack Noonan in a prepared statement.

SPSS reported new license revenue of $27.4 million in its most recent quarter, up 22 percent over last year.

The public markets reacted positively to the vendor's earnings report, which came out after market close Monday. SPSS shares sprinted to a new 52-week high in mid-day trading Tuesday, briefly hitting $25.19 each.