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Business intelligence leader SAS hits record revenues

Launch of SAS Enterprise BI Server and strong solutions performance drive revenue up 10% to $1.68 billion

On the eve of its 30th anniversary, SAS today announced that its intelligence strategy, evidenced by increased demand for SAS® Enterprise BI Server and industry-specific solutions, led to record sales in 2005. Total revenue grew 10%, from $1.53 billion to $1.68 billion, marking 29 consecutive years of revenue growth and profitability.

'Our customers rely on the SAS®9 Enterprise Intelligence Platform to grow profits and improve customer satisfaction,” said CEO Jim Goodnight. “With demand for SAS technologies, solutions, and industry expertise never greater, we’re better positioned than ever to meet it.”

Revenue breakdown
From an industry perspective, solutions for banking continued to lead, growing 10% and generating 28% of industry-specific revenue. Retail was up 20%, Education 16%, Insurance 12% and Government 11%. Global demand for better intelligence in financial management, HR, IT, marketing automation, risk, and supply chain drove cross-industry solutions sales up XX% higher than in 2005.

SAS’ revenue showed global balance: 46% came from Americas, 44% from Europe/Middle East/Africa (EMEA), and 10% from Asia Pacific. Latin America and the Caribbean grew 42%, highlighted by 86% growth in Mexico and 22% in Brazil.

Asia Pacific (including Japan) grew 15%, led by growth in Korea (28%), China (60%), and India, where revenues more than doubled. Overall 10% growth in EMEA was sparked by increases in well-established markets including South Africa (33%), Norway (32%), Spain (31%), Austria (26%), Poland (21%) and Germany (15%).

Focus on customers
“SAS’ longevity is a testament our strong customer relationships,” Goodnight said. “We maintain these by focusing on customer retention and investing 26% of revenues into research and development.”

New SAS customers in 2005 in Asia Pacific included: Bangko Sentral Ng Philipina, Bank of East Asia, Bumiputra Commerce Bank, CCB Helongjiang Branch, Centrelink, Centurion Bank, China Trust Commercial Bank, Citibank Singapore, GlaxoSmithKline, Guangzhou Mobile, Hana Bank, Hanaro Bank, HDFC Bank, ICFAI Business School, Korea Exchange Bank, Korea Telecom, LG Card, LG Electronics, Livzon Pharmaceutical Group Inc, Lotte.com, Maxis Communications, Medicare Australia, Ministry of ICT Thailand, NETS Singapore Pte Ltd, OCBC, People’s Association, Poongsan, Posco, Public Bank Berhad, Resorts World Berhad, St George’s Bank, Samsung Life Insurance, Seoul University Bandung Hospital, Severance Hospital, Shinhan Bank, SK Telecom, Total Access Communication, Tsinghua University Virgin Money, Woori Bank, Yuchengco Group of Companies, University of New South Wales

More than 3,400 current SAS customers, recognizing the value of their SAS investment, licensed additional software in 2005. SAS’ new global Business Intelligence Competency Center program will help customers make the most their BI investments by building cohesive strategies.

SAS’ Market Position in BI
Several 2005 reports by influential industry analysts recognized SAS’ leadership. Specifically, Gartner, Inc. positioned SAS in its Leaders Quadrant in “Magic Quadrant for Business Intelligence Platforms, 1Q06.” Leaders demonstrate breadth and depth of BI platform capabilities and deliver on enterprisewide implementations that support broad BI strategies 26%.1 SAS was also in the leaders quadrant in Gartner’s magic quadrant for Basel II Risk Management Application Software.2

SAS was ranked the BI leader in CIO Insight’s 2005 Vendor Value Survey, where 884 IT executives identified top vendors for delivering value and reliability.

Trends and outlook for 2006
“In Asia Pacific, SAS expects to see the trend for strong growth performance continue in 2006, especially in India and China, as more organizations take on fact-based decision making”, said Phillip Beniac Vice President, SAS Asia Pacific, “0ur focus for 2006 is to deliver to customers the value of our 30 year investment in the SAS®9 Enterprise Intelligence Platform, which includes data integration, storage, analytics and business intelligence.”

About SAS India
SAS has been in India since 1997 and currently has two wholly owned subsidiaries in the country: SAS India and SAS Global Services (SGS). With a team of more than 200 technology and domain experts, SAS India operations are headquartered in Mumbai with regional offices in Bangalore, New Delhi and Pune. Its strong customer base in India, with more than 180 installations, includes such companies as Citibank N.A., GE Capital, GlaxoSmithKline, HDFC Bank, Hindustan Lever Ltd., Novartis, Reserve Bank of India Pfizer and Standard Chartered Bank, among others.

About SAS
SAS is the market leader in providing a new generation of business intelligence software and services that create true enterprise intelligence. SAS solutions are used at 40,000 sites -- including 96 of the top 100 companies on the FORTUNE Global 500® -- to develop more profitable relationships with customers and suppliers; to enable better, more accurate and informed decisions; and to drive organizations forward. SAS is the only vendor that completely integrates leading data warehousing, analytics and traditional BI applications to create intelligence from massive amounts of data. For three decades, SAS has been giving customers around the world The Power to Know®. Visit us at www.sas.com.

1.Gartner Research. “Magic Quadrant for Business Intelligence Platforms, 1Q06” by Kurt
Schlegel, Bill Hostmann, Andreas Bitterer, Betsy Burton. January 9, 2006.

2.Gartner Research “Magic Quadrant for Basel II Risk Management Application Software, 2005”
by David Furlonger and Douglas McKibben. September 16, 2005.

About the Magic Quadrant
The Magic Quadrant is copyrighted January 9, 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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