SPSS Inc. Q2 2008 Earnings Call Transcript

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2008-07-29 18:30:31.0

Tags: SPSS Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question will come from the line Steve Ashley from Robert W. Baird.

Steve Ashley - Robert W. Baird

Well, firstly, I'd like to thank you for providing all that detail on all the geographies, and then I am going to ask you to actually repeat some of it because I missed getting some it down. In terms of total revenue growth, I am sorry, did you say the America's was plus 6%, UK was plus 12%?

Raymond Panza

Correct, on total.

Steve Ashley - Robert W. Baird

Okay, on total. And then what was Netherlands, minus seven?

Raymond Panza

Minus seven.

Steve Ashley - Robert W. Baird

And other Pacific Rim?

Raymond Panza

Six.

Steve Ashley - Robert W. Baird

Six. And then Japan?

Raymond Panza

Japan is included in the overall Pac Rim and represents the largest portion of that six.

Steve Ashley - Robert W. Baird

Great. And then, some more color on this relocating of your sales office and inside call center in the Netherlands. What GOS were impacted by that? And is there any way to guess the dollar amount of impact that might have had on revenue?

Raymond Panza

Yes. Overall, what happened is we were not able to replace some people. It became very competitive for skilled software people. And we're in a location that's not on a train line or on a major highway. And we realized probably a little bit too late that we didn't have the sales capacity.

We fixed that by opening an office in Utrecht, which is right at the train station at a major intersection on a highway, which is helping our recruiting. We've already opened the office. We've already started to ramp-up the people and have a number of people hired. So, we think this is a fixable issue.

We recognized that our Northern Europe, which is predominantly the Netherlands, Sweden and Denmark, with net-net down about Sweden and Denmark with net down about $1.8 million.

Steve Ashley - Robert W. Baird

Great. And then, do you know what license revenue would have been in the period excluding FX?

Raymond Panza

I am sorry, Steve.

Steve Ashley - Robert W. Baird

License revenue year-over-year excluding FX.

Raymond Panza

License revenue year-over-year excluding FX was, as I mentioned, was about flat.

Steve Ashley - Robert W. Baird

Great, thank you.

Raymond Panza

I should point out, that 1.8 I gave you were Holland. That is ex-currency. That's after all currency. That's a real number. And that's why it's so material to us. Had that 1.8 been realized, we would have been having a totally different discussion.

 

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