SPSS Revenues Up, But Earnings Down

Despite a 10 percent revenue increase in Q3, company loses $4.3 million for the quarter.

SPSS Inc. enjoyed a 10 percent revenue increase in the third quarter of 2003 from the same period a year ago, but saw profits generated in last years third quarter turn to losses this year.

The Chicago-based business intelligence and analytics software developer saw revenues go up to $52.7 million from $47.9 million in last years third quarter. But SPSS lost $4.3 million after a $2.6 million profit last year.

The company ended its investment in Illumitek Corp., taking a $4.3 million charge in the process, though it took over Illumiteks nVizn product. SPSS also completed a reorganization of its field sales operations in the quarter, which included a 25 percent reduction in the size of the sales force.

Market research and statistics products led the revenue surge. Revenues for analytical solutions and data warehousing applications fell during the quarter.

SPSS officials said the company saw little revenue in the quarter from its NetGenesis and LexiQuest applications for Web analytics and text mining, respectively. Its PredictiveMarketing for Siebel application also did not produce "any immediate returns," though officials say the sales pipeline is strong for all these products.

Another data analysis software developer, Insightful Corp., saw revenues go down in the third quarter, from $4.3 million last year to $3.9 million this year. License revenues were up slightly, however, from $2.8 million to $3.1 million.

The Seattle-based company lost $1.05 million after a $43,000 profit last year.