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SAS achieves record $1.9 billion revenueNew license revenue jumps 20%, outpacing industry predictions14 February 2007 – Strong demand for industry-specific and packaged solutions fueled the 30th straight year of revenue growth for SAS, the leader in business intelligence. Total revenue in 2006 was US$1.9 billion, up 12 percent over US$1.7 billion in 2005, SAS announced today. New software license revenue increased 20 percent, nearly twice the growth rate expected in the market this year. Total revenues in the UK reached $148.6 million in 2006, up 16% on 2005. SAS UK continued to strengthen its position in many industry sectors. The financial services and insurance sectors represented 56% of total software revenue sales. Significant growth was also seen in the pharmaceuticals sector (73%), public sector (39%), media (38%), utilities (32%), academic (14%) and services sectors (14%). "This year’s strong financial results validate the new course we set for the company several years ago when we began investing heavily in business and industry-focused applications built on an enterprise intelligence platform," said SAS CEO Jim Goodnight. "We had a good year. Industry and packaged business solutions were up 49 percent over 2005. One of our core strengths, powerful predictive analytics, continued to represent a significant stream of revenue at 19 percent growth. Sales of business intelligence and data integration/warehousing were each up by nearly 50 percent, demonstrating the importance of an integrated intelligence portfolio." In its most recent business intelligence report1, analyst firm IDC wrote that "in the short term, IDC does not see any serious challenge to SAS' dominance of the advanced analytics market and expects the company to continue to experience above-market growth rates for query, reporting, and analysis. However, at the same time there is likely going to be a long-term, continuous shift toward more packaged analytic applications." Dan Vesset, Research Director, Business Analytics, IDC, said: "Given SAS' latest financial performance announcement, it is clear that the shift toward packaged analytic applications has benefited the company faster than we expected. Over the recent years, SAS has transformed itself from a company known primarily for its advanced analytics tools to a provider of a broad portfolio of packaged analytic applications that incorporate the company's advanced analytics, query and reporting and data management expertise as well as industry and process-specific content." INDUSTRY, CROSS-INDUSTRY SOLUTION SALES INCREASE SAS saw strong increases in key vertical markets. The retail-based sector grew 18 percent as retailers continue to recognise the competitive advantage they gain from applications such as forecasting and optimisation. Revenue from financial services jumped 17 percent, demonstrating strong growth in risk management and SAS' dominance as a provider of Basel II compliance software. Life sciences revenue grew 12 percent − a result of organisations increasing investment in advanced analytics to improve business operations. In the public sector, where fraud detection solutions drove increases, revenue rose 10 percent. Cross-industry business solutions saw total gains of 45 percent because of high demand for marketing automation, performance management, and risk and IT management software. GLOBAL BREAKDOWN As in 2005, SAS’ 2006 results remained globally balanced. The Americas accounted for 45 percent of total revenue; Europe, Middle East and Africa (EMEA) 45 percent; and Asia Pacific 10 percent. Revenue from the Americas increased 14 percent. Revenue in EMEA and Asia Pacific each rose 13 percent. More than 1,300 customers were new to SAS in 2006. Among them are AllianceBank, Ambank, Citi Info, Dick’s Sporting Goods Inc., Google Inc., Hanaro Telecom, HSBC Bank Canada, Macys.com, National Stock Exchange of India, Netflix, Nippon Paper, Norwegian Cruise Line Ltd., Texas Instruments France and UTI Bank. SAS® ENTERPRISE INTELLIGENCE PLATFORM: COMPREHENSIVE The SAS Enterprise Intelligence Platform provides an integrated platform for delivering enterprise intelligence. "SAS customers are using the industry’s most comprehensive enterprise intelligence platform," said SAS Senior Vice President Jim Davis. "They’re investing in the best. No other vendor comes near SAS for advanced analysis, business intelligence, and data integration." Analyst firm Gartner recently positioned SAS in the Leaders Quadrant in its "Magic Quadrant for Business Intelligence Platforms, 1Q07"2 report. Via the SAS Enterprise BI Server, SAS offers users at any level immediate access to cleansed, reliable data through targeted user interfaces that match the skill level of the individual user. Adoption of the SAS BI Server, which addresses the needs of IT management as well as business users , jumped 80 percent in 2006. OUTLOOK FOR 2007 "Based on the success of our packaged analytic applications and comprehensive enterprise intelligence platform, we expect to be a $2 billion company in 2007," Goodnight said. "Additionally, we have set the stage for increased sales by implementing our first-ever partner channel." Launched in 2006, a burgeoning reseller network will increase SAS’ routes to the market. "Combining market-leading technology and industry solutions with our strategic partners’ domain knowledge will continue to be top priority this year," Goodnight said. "Global system integrators and members of the SAS Alliance will accelerate our growth." Stephen Graham, IDC Group Vice President for Global Software Business Strategies, said: "Coming off another year of revenue growth, SAS has taken some important steps to align its resources with partners to extend market reach. Developing a presence within the reseller channel is an important step for SAS to achieve continued revenue growth and increase their market share in 2007." About the Magic Quadrant The Magic Quadrant is copyrighted Jan. 26, 2007, 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. About SASSAS is the leader in business intelligence software and services. Customers at 40,000 sites use SAS software to improve performance through insight into vast amounts of data, resulting in faster, more accurate business decisions; more profitable relationships with customers and suppliers; compliance with governmental regulations; research breakthroughs; and better products. Only SAS offers leading data integration, intelligence storage, advanced analytics and business intelligence applications within a comprehensive enterprise intelligence platform. Since 1976, SAS has been giving customers around the world The Power to Know ® .
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