SSPS Inc. (SPSS), a provider of Predictive Analytics software and solutions, Tuesday reported a decline in its second-quarter profit reflecting a decline in revenues. Results came in below Street estimates.
Quarterly net profit declined 12% to $6.18 million from $7.03 million in the same quarter a year ago, while on a per share basis, earnings were down 14% to $0.32 per share from $0.37 per share in the corresponding quarter last year.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.42 per share for the second quarter. Analysts estimate typically excludes special items.
Jack Noonan, CEO said, "Even in more stable economic times, our second quarter is generally our softest quarter. In this continued unpredictable market, we faced an even greater challenge."
Quarterly operating income, however, increased to $11.3 million from $10.9 million in the same quarter last year, helped by the cost cutting measures deployed late in last year.
Quarterly revenues declined 8% to $69.7 million from $75.7 million in the same quarter last year. Excluding the unfavorable impact of currency translations, quarterly revenues remained flat with the comparable quarter a year ago. Wall Street expected revenues of $71.00 million for the second quarter.
The decline in quarterly revenues was primarily due to decreases in license revenues and services revenues. License revenues declined 13% to $30.3 million from $34.8 million in the comparable quarter a year ago, while services revenues declined 23% to $5.9 million from $7.7 million in the corresponding quarter last year.
According to Noonan, "Mid- and low-priced transactions of our statistical products continue to account for the majority of our license revenue and, as expected, we had a lower number of larger sales of combined products, particularly in Europe, which weakened our second quarter results. Geographically, we saw a slight decline in license revenue in the U.S. and greater weakness in Europe, offset by higher sales in Asia Pacific, with significant gains in Japan."
For the six-month period, net income declined 3% to $15.5 million from $16.1 million in the same quarter last year, while on a per share basis, earnings dropped 5% to $0.80 per share from $0.84 per share in the comparable quarter last year.
Net revenues for the six-month period declined 8% to $141.826 million from $153.942 million in the same quarter last year.
The company did not provide guidance for the third quarter and the rest of the year in view of the pending merger deal with IBM.
SPSS closed Tuesday's trading at $49.49, up $0.04 or 0.08%, on a volume of 0.956 million shares on the Nasdaq.
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