-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LyRWznRpm+7l0VAfk4dhog3c9w5M4VpInOiaI5JXtQZbOxB46VStlsSqequqhR60 a2CBSlYuf6GQtRZQpHsoIA== 0000950137-99-001617.txt : 19990517 0000950137-99-001617.hdr.sgml : 19990517 ACCESSION NUMBER: 0000950137-99-001617 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPSS INC CENTRAL INDEX KEY: 0000869570 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 362815480 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-22194 FILM NUMBER: 99621259 BUSINESS ADDRESS: STREET 1: 233 SOUTH WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3123292400 MAIL ADDRESS: STREET 1: 233 SOUTH WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 10-Q 1 FORM 10-Q 1 =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999 COMMISSION FILE NUMBER: 33-64732 SPSS INC. (Exact name of registrant as specified in its charter) DELAWARE 36-2815480 (State or other jurisdiction (IRS Employer Identification No.) of incorporation or organization) 233 S. Wacker Drive, Chicago, Illinois 60606 (Address of principal executive offices and Zip Code) REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE: (312) 651-3000 Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes X No --- --- As of May 10, 1999, there were 9,049,985 shares of common stock outstanding, par value $.01, of the registrant. =============================================================================== 2 SPSS INC. FORM 10-Q QUARTER ENDED MARCH 31, 1999 INDEX
PART I - FINANCIAL INFORMATION PAGE ---- ITEM 1. FINANCIAL STATEMENTS Independent Auditors' Review Report 3 Consolidated Balance Sheets as of December 31, 1998 And March 31, 1999 (Unaudited) 4 Consolidated Statements of Income for the three months ended March 31, 1998 (unaudited) and 1999 (unaudited) 5 Consolidated Statements of Comprehensive Income for the three months ended March 31, 1998 (unaudited) and 1999 (unaudited) 6 Consolidated Statements of Cash Flows for the three months ended March 31, 1998 (unaudited) and 1999 (unaudited) 7 Notes to Consolidated Financial Statements 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS of FINANCIAL CONDITION AND RESULTS of OPERATION 8 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS 13 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 13
2 3 ITEM 1. FINANCIAL STATEMENTS INDEPENDENT AUDITORS' REVIEW REPORT The Board of Directors SPSS Inc.: We have reviewed the consolidated balance sheet of SPSS Inc. and subsidiaries as of March 31, 1999 and the related consolidated statements of income, comprehensive income and cash flows for the three-month periods ended March 31, 1998 and 1999. These consolidated financial statements are the responsibility of SPSS Inc. management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above, for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of SPSS Inc. and subsidiaries as of December 31, 1998, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 17, 1999, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1998, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. /s/ KPMG LLP - ------------ KPMG LLP Chicago, Illinois May 4, 1999 3 4 SPSS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA)
DECEMBER 31, MARCH 31, 1998 1999 ----------- ----------- ASSETS (unaudited) CURRENT ASSETS: Cash and cash equivalents $ 14,912 $13,638 Accounts receivable, net of allowances 33,825 32,160 Inventories 2,871 3,094 Deferred income taxes 2,183 2,183 Prepaid expenses and other current assets 2,304 2,474 -------- ------- Total current assets 56,095 53,549 -------- ------- EQUIPMENT AND LEASEHOLD IMPROVEMENTS, at cost: Land and building 1,721 1,670 Furniture, fixtures, and office equipment 7,252 7,236 Computer equipment and software 23,068 23,776 Leasehold improvements 6,434 7,489 -------- ------- 38,475 40,171 Less accumulated depreciation and amortization 22,783 23,683 -------- ------- Net equipment and leasehold improvements 15,692 16,488 -------- ------- Capitalized software development costs, net of accumulated amortization 10,658 11,429 Goodwill, net of accumulated amortization 5,110 5,010 Other assets 3,734 3,515 -------- ------- $91,289 $89,991 ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable $ 9,000 $ 8,000 Accounts payable 6,146 5,507 Accrued royalties 571 491 Accrued rent 847 901 Other accrued liabilities 10,431 9,720 Income taxes and value added taxes payable 5,822 5,455 Customer advances 579 455 Deferred revenues 10,310 8,859 -------- ------- Total current liabilities 43,706 39,388 -------- ------- Deferred income taxes 2,638 2,638 Other non-current liabilities 1,222 1,122 STOCKHOLDERS' EQUITY: Common Stock, $.01 par value; 50,000,000 shares authorized; 9,029,326 and 9,037,433 shares issued and outstanding in 1998 and 1999, respectively 90 90 Additional paid-in capital 47,054 47,161 Accumulated other comprehensive income (877) (1,159) Retained earnings (accumulated deficit) (2,544) 751 -------- ------- Total stockholders' equity 43,723 46,843 -------- ------- $ 91,289 $89,991 ======== =======
See accompanying notes to consolidated financial statements. 4 5 SPSS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT FOR SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED MARCH 31, --------------------------- 1998 1999 ---------- ---------- Net revenues: Desktop products $ 20,615 $ 24,035 Large System products 4,300 4,315 Other products and services 3,585 4,198 ---------- ---------- Net revenues 28,500 32,548 Cost of revenues 2,435 2,683 ---------- ---------- Gross profit 26,065 29,865 ---------- ---------- Operating expenses: Sales and marketing 14,281 16,757 Product development 4,954 5,639 General and administrative 1,785 2,212 ---------- ---------- Operating expenses 21,020 24,608 ---------- ---------- Operating income 5,045 5,257 ---------- ---------- Other income (expense): Net interest income (expense) 28 (75) Other expense (162) (167) ---------- ---------- Other income (expense) (134) (242) ---------- ---------- Income before income taxes 4,911 5,015 Income tax expense 1,685 1,720 ---------- ---------- Net income $ 3,226 $ 3,295 ========== ========== Basic net earnings per share $ 0.36 $ 0.36 ========== ========== Shares used in computing basic net earnings per share 8,843,934 9,034,886 ========== ========== Diluted net earnings per share $ 0.34 $ 0.35 ========== ========== Shares used in computing diluted net earnings per share 9,517,007 9,544,873 ========== ==========
See accompanying notes to consolidated financial statements. 5 6 SPSS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED MARCH 31, ----------------------- 1998 1999 ---- ---- Net income $3,226 $3,295 Other comprehensive income (loss): Foreign currency translation adjustment 216 (282) ------ ------ Comprehensive income $3,442 $3,013 ====== ======
See accompanying notes to consolidated financial statements. 6 7 SPSS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED MARCH 31, --------------------- 1998 1999 ----------- -------- Cash flows from operating activities: Net income $ 3,226 $ 3,295 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 1,454 2,087 Changes in assets and liabilities: Accounts receivable 983 1,665 Inventories (486) (223) Accounts payable (223) (639) Accrued royalties (90) (80) Accrued expenses (1,863) (657) Accrued income taxes 1,178 (367) Deferred revenues (1,351) (1,451) Other 433 (661) ------- ------- Net cash provided by operating activities 3,261 2,969 ------- ------- Cash flows from investing activities: Capital expenditures, net (1,861) (1,931) Capitalized software development costs (1,016) (1,419) Net payments for acquisitions (24) -- ------- ------- Net cash used in investing activities (2,901) (3,350) ------- ------- Cash flows from financing activities: Net repayments on notes payable (71) (1,000) Net proceeds from issuance of common stock 253 107 Income tax benefit from stock option exercises 114 -- ------- ------- Net cash (used in) provided by financing activities 296 (893) ------- ------- Net change in cash and cash equivalents 656 (1,274) Cash and cash equivalents at beginning of period 8,079 14,912 ------- ------- Cash and cash equivalents at end of period $ 8,735 $13,638 ======= ======= Supplemental disclosures of cash flow information: Interest paid $ 78 $ 185 Income taxes paid 843 1,546 ======= =======
See accompanying notes to consolidated financial statements. 7 8 SPSS INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods presented. All such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with SPSS' audited consolidated financial statements and notes thereto for the year ended December 31, 1998, included in SPSS' Annual Report on Form 10-K filed with the Securities and Exchange Commission. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. The following table sets forth the percentages that selected items in the Consolidated Statements of Income bear to net revenues:
PERCENTAGE OF NET REVENUES -------------------------------- THREE MONTHS ENDED MARCH 31, -------------------------------- 1998 1999 --------------- -------------- Statement of Income Data: Net revenues: Desktop products 72% 74% Large System products 15% 13% Other products and services 13% 13% --------------- -------------- Net revenues 100% 100% Cost of revenues 9% 8% --------------- -------------- Gross profit 91% 92% --------------- -------------- Operating expenses: Sales and marketing 50% 52% Product development 17% 17% General and administrative 6% 7% --------------- -------------- Operating expenses 73% 76% --------------- -------------- Operating income 18% 16% --------------- -------------- Other income (expense): Net interest income (expense) -- -- Other expense (1%) (1%) --------------- -------------- Other income (expense) (1%) (1%) --------------- -------------- Income before income taxes 17% 15% Income tax expense 6% 5% --------------- -------------- Net income 11% 10% =============== ==============
8 9 COMPARISON OF THREE MONTHS ENDED MARCH 31, 1998 TO THREE MONTHS ENDED MARCH 31, 1999. Net Revenues. Net Revenues were $28,500,000 and $32,548,000 in the three months ended March 31, 1998 and 1999, respectively, an increase of 14%. Revenues from products designed for desktop computers ("Desktop products") increased $3,420,000 (17%) over the corresponding period in 1998. In addition, revenues from annual license renewals of Desktop products increased by $702,000, reflecting a $734,000 increase in annual license renewals for SPSS for Windows. Revenues from products designed for mainframes, minicomputers, and UNIX workstations ("Large System products") were flat compared to the corresponding period in 1998. Other products and services revenues increased 17% due to growth in training and consulting revenues. Revenues for the first quarter of 1999 were adversely effected by changes in foreign currency exchange rates. Cost of Revenues. Cost of revenues consists of costs of goods sold, amortization of capitalized software development costs, and royalties paid to third parties. Cost of revenues was $2,435,000 and $2,683,000 in the three months ended March 31, 1998 and 1999, respectively, an increase of 10%. Such costs increased due to higher cost of goods sold resulting from increased sales and increased amortization of capitalized software. As a percentage of net revenues, cost of revenues decreased from 9% to 8%. Sales and Marketing. Sales and marketing expenses were $14,281,000 and $16,757,000 in the three months ended March 31, 1998 and 1999, respectively, an increase of 17%. This increase was due to the addition of the former Integral Solutions Limited ("ISL") and Surveycraft Pty Ltd. sales, marketing and services personnel, expansion of the domestic and international sales organizations, higher cost of new, more senior sales personnel and increased consulting expenses. As a percentage of net revenues, such expenses increased from 50% to 52%. Product Development. Product development expenses were $4,954,000 and $5,639,000 (net of capitalized software development costs of $516,000 and $313,000) in the three months ended March 31, 1998 and 1999, respectively, an increase of 14%. In the corresponding periods in 1998 and 1999, SPSS' expense for amortization of capitalized software and product translations, included in cost of revenues, was $451,000 and $650,000, respectively. The increase in product development expenses was primarily due to addition of the ISL development group, other additions to the product development staff and increases in staff compensation. As a percentage of net revenues, product development expenses remained constant at 17%. General and Administrative. General and administrative expenses were $1,785,000 and $2,212,000 in the three months ended March 31, 1998 and 1999, respectively, an increase of 24%. Such expenses increased primarily due to the addition of amortization expense related to ISL and Surveycraft intangibles and an increased administrative staff. As a percentage of net revenues, general and administrative expenses increased from 6% to 7%. 9 10 Net Interest Income (Expense). Net interest income (expense) was $28,000 and ($75,000) in the three months ended March 31, 1998 and 1999, respectively. This unfavorable variance was primarily due to the interest expense on the line-of-credit borrowing during the three months ended March 31, 1999 compared to no borrowing on the line-of-credit during the comparable period of 1998. Other Expense. Other expense was $162,000 and $167,000 in the three months ended March 31, 1998 and 1999, respectively. Such transactions consist of foreign currency transactions. Provision for Income Taxes. Provision for income taxes was $1,685,000 and $1,720,000 in the three months ended March 31, 1998 and 1999, respectively. During 1998 and 1999, the provision for income taxes represented an effective tax rate of approximately 34.3%. LIQUIDITY AND CAPITAL RESOURCES SPSS' long-term debt as of March 31, 1999 is a mortgage on property in the United Kingdom. As of March 31, 1999, SPSS held approximately $13,638,000 of cash and short-term investments. Funds in the first three months of 1999 were provided by operations and offset by payments for acquisition-related charges from SPSS' acquisitions of Quantime Limited, In2itive Technologies A/S, Surveycraft and ISL. Capital expenditures included, among other things, new computer systems for use in internal product development and sales. In May 1998, SPSS entered into a new loan agreement (the "Agreement") with American National Bank and Trust Company of Chicago ("American National") to replace its existing agreement with Bank of America, N.T.S.A. Under the Agreement, SPSS has an available $10,000,000 unsecured line of credit with American National, under which borrowings bear interest at either the prime interest rate or the Eurodollar Rate, depending on the circumstances. As of March 31, 1999, SPSS had $8,000,000 outstanding under this line of credit. SPSS' Agreement with American National requires SPSS to comply with certain specified financial ratios and tests, and, among other things, restricts SPSS' ability to (i) incur additional indebtedness, (ii) create liens on assets, (iii) make investments, (iv) engage in mergers, acquisitions or consolidations where SPSS is not the surviving entity, (v) sell assets, (vi) engage in certain transactions with affiliates and (vii) amend its organizational documents or make changes in capital structure. SPSS anticipates that amounts available under its line of credit, existing sources of liquidity and cash flows generated from operations will be sufficient to fund SPSS' operations and capital requirements for the foreseeable future. However, no assurance can be given that changing business circumstances will not require additional capital for reasons that are not currently anticipated or that the necessary additional capital will then be available to SPSS on favorable terms, or at all. 10 11 INTERNATIONAL OPERATIONS Revenues from international operations were 53% of total net revenues in the three months ended March 31, 1999 compared to 54% in the three months ended March 31, 1998. The portion of revenues attributable to international operations were affected by changes in foreign currency exchange rates. Net corporate revenues increased 14% in the three months ended March 31, 1999 when compared to the three months ended March 31, 1998. Net of the effects of changes in foreign currency rates, the increase would have been approximately 13% for the quarter. SAFE HARBOR "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this report constitute "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"). Such statements involve known and unknown risks and uncertainties which may cause SPSS' actual results, performance or achievements, or industry results, to be materially different than any future results, performance or achievements expressed or implied in or by such forward-looking statements. By way of example and not limitation, known risks and uncertainties include SPSS' ability to successfully integrate or improve the performance of acquired businesses, change in market conditions or product demand, competition and currency fluctuations, changes in product release schedules and product acceptance. In light of these and other risks and uncertainties, the inclusion of forward-looking statements in this report should not be regarded as a representation by SPSS that any future results, performance or achievements will be attained. YEAR 2000 Many computer systems and applications currently use two digits to define the applicable year. As a result, date-sensitive systems may recognize the year 2000 as 1900 or not at all, which could cause miscalculations or system failures. SPSS uses software and other related technologies throughout its business and also sells computer software that will be affected by the date change in the year 2000. The four areas where year 2000 issues may affect SPSS include: - SPSS' information technology (IT) systems; - SPSS' non-IT systems; - the computer software SPSS sells; and - third parties with material relationships with SPSS, such as vendors and suppliers. To address the year 2000 issue, SPSS assembled a committee of representatives from all divisions and operating areas in early 1998. An inventory of the readiness of all major IT and non-IT systems has been completed and SPSS is in the process of testing and replacing non-compliant systems. This process is expected to be completed by mid-1999. Likewise, SPSS has been testing the software it sells to third parties. The year 2000 compliance of SPSS products is detailed at SPSS' Web Site at www.spss.com. Finally, SPSS has sent compliance question letters to all its major suppliers. Virtually all have responded and most of those responding 11 12 signed the standard compliance letter, as SPSS requested. Those responding suppliers that did not sign the SPSS standard compliance letter instead provided their own year 2000 compliance materials. These materials have been forwarded to the appropriate members of SPSS' year 2000 committee for evaluation. Thus far, the SPSS year 2000 committee has not encountered any material issues. The SPSS year 2000 committee will be developing contingency plans in the event of year 2000 non-compliance and expects to have this completed by mid-1999. While SPSS' year 2000 readiness plans are underway, the consequences of non-compliance by SPSS, its major service providers, vendors or suppliers could have a material adverse effect on SPSS' operations. Although SPSS does not anticipate any major non-compliance issues, there can be no assurance that there will not be a delay in, or increased costs associated with, the implementation of SPSS' year 2000 readiness plan. SPSS currently believes that the greatest risk of disruption in its business exists in the event of non-compliance by its material third parties. Some of the possible consequences of non-compliance by SPSS or its material third party suppliers include: - inability to efficiently contact customers to obtain orders: - inability to get orders to fulfillment houses; - inability to send product to customers; and - invoice and collection errors. Given these risks, SPSS is developing contingency plans intended to mitigate the possible disruption in business operations that may result from year 2000 non-compliance. It is currently estimated that the aggregate cost of SPSS' year 2000 efforts will be approximately $1.25 million to $1.5 million, of which $850,000 has been incurred to date. These costs do not include any costs associated with the implementation of contingency plans, which are in the process of being developed. SPSS' year 2000 readiness plan is an ongoing process and the estimates of costs and completion dates for various components of the program as described above are subject to change. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. SPSS' market risk disclosures pursuant to item 3 are not material and are therefore not required. 12 13 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Currently there are no material pending legal proceedings to which SPSS or any of its subsidiaries is a party or to which any of their property is subject. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits (Note: Management contracts and compensatory plans or arrangements are underlined in the following list.)
Incorporation Exhibit by Reference Number Description of Document (if applicable) - ------- ----------------------- --------------- 3.1 Certificate of Incorporation of SPSS * 3.2 3.2 By-Laws of SPSS * 3.4 4.1 Loan Agreement between SPSS and + 4.1 American National Bank and Trust Company Of Chicago 4.2 Rights Agreement, dated June 18, 1998 between ** Exhibit 1 SPSS Inc. and Harris Trust and Savings Bank 15.1 Acknowledgment of Independent Certified Public Accountants Regarding Independent Auditors' Review Report 27.1 Financial Data Schedule
- ------------------------------- * Previously filed with Amendment No. 2 to Form S-1 Registration Statement of SPSS Inc. filed on August 4, 1993 (Registration No. 33-64732) ** Previously filed with SPSS' Registration Statement on Form 8-A filed on June 18, 1998 13 14 + Previously filed with SPSS' 10-Q Quarterly Report for the quarterly period ended June 30, 1998. (b) Reports on Form 8-K There were no reports on Form 8-K filed by SPSS during the fiscal quarter ended March 31, 1999. 14 15 SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. SPSS INC. DATE: MAY 14, 1999 BY: /s/ JACK NOONAN --------------------------------------- JACK NOONAN PRESIDENT AND CHIEF EXECUTIVE OFFICER PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS REPORT HAS BEEN SIGNED BY THE UNDERSIGNED, IN HIS CAPACITY AS THE PRINCIPAL FINANCIAL OFFICER OF THE REGISTRANT. DATE: MAY 14, 1999 BY: /s/ EDWARD HAMBURG --------------------------------------- EDWARD HAMBURG EXECUTIVE VICE-PRESIDENT, CORPORATE OPERATIONS AND CHIEF FINANCIAL OFFICER 15 16 EXHIBIT INDEX
Exhibit Page Number Description of Document Number - ------- ----------------------- ------ 15.1 Acknowledgement of Independent Certified Public Accountants Regarding Independent Auditors' Review Report 27.1 Financial Data Schedule
16 EX-15.1 2 INDEPENDENT AUDITORS' REVIEW REPORT 1 EXHIBIT 15.1 ACKNOWLEDGMENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS REGARDING INDEPENDENT AUDITORS' REVIEW REPORT The Board of Directors SPSS Inc.: With respect to the Registration Statements on Form S-8 (nos. 333-25869, 33-73130, 33-80799, 33-73120, 333-63167 and 33-74402) of SPSS Inc., on Form S-3 the registration statements (nos. 333-41207, 333-21025, 333-10423) and on Form S-4 the registration statement (no. 333-15427) of SPSS Inc., we acknowledge our awareness of the use therein of our report dated May 4, 1999 related to our review of interim financial information. Pursuant to Rule 436(c) under the Securities Act of 1933, such report is not considered part of a registration statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of sections 7 and 11 of the Act. /s/ KPMG LLP ------------- KPMG LLP Chicago, Illinois May 14, 1999 EX-27.1 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SPSS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT MARCH 31, 1999 AND CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1999 JAN-01-1999 MAR-31-1999 $13,638 0 34,020 1,860 3,094 53,549 40,171 23,683 89,991 39,388 1,122 0 0 90 46,753 89,991 32,548 32,548 2,683 2,683 24,608 241 152 5,015 1,720 3,295 0 0 0 3,295 0.36 0.35
-----END PRIVACY-ENHANCED MESSAGE-----