Business Intelligence Leader SAS Hits Record Revenues of $1.68 Billion; Launch of SAS® Enterprise Intelligence Platform, Strong Solutions Performance Drive Revenue up 10%

Business Wire, Feb 14, 2006

CARY, N.C. -- On the eve of its 30th anniversary, SAS today announced that its intelligence strategy, evidenced by increased demand for the SAS(R) Enterprise Intelligence Platform 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(R)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-based revenue was up 20%, education 16%, insurance 12% and government 11%. As for horizontal, cross-industry business solutions, global sales jumped 24% over 2004 due to gains in the areas of business performance management, HR, IT, marketing automation and risk.

SAS' revenue showed global balance: 46% came from Americas, 44% from Europe/Middle East/Africa (EMEA) and 10% from Asia Pacific.

The Americas grew by 9%, with 7% growth in the established U.S. market and 17% in Canada. Latin America and the Caribbean grew 42%, highlighted by 86% growth in Mexico and 22% in Brazil.

Overall 11% growth in EMEA was sparked by increases in established markets including South Africa (33%), Norway (32%), Spain (31%), Austria (26%), and Poland (21%), as well as high growth in an emerging market in Russia (66%). Asia Pacific grew 15% overall, led by South Korea (44%), Singapore (20%) and China - including Hong Kong - (30%), with India's revenue more than doubling.

Focus on customers

"SAS' longevity is a testament to our strong customer relationships," Goodnight said. "We maintain this loyalty by focusing on customer retention and investing 24% of revenues into research and development."

Organizations that licensed software in 2005 included: Barclays Bank PLC, BASF SA, BMW of North America LLC, CitiFinancial International, Colombia Telecomunicaciones SA, Daiichi, France Telecom, Hasselt University, Hema Quebec, Office Depot International BV, Redcats USA, Samsung Life Insurance, Telefonica, Too Inc, China Trust Commercial Bank, Miami University of Ohio, and Verizon Communications Inc.

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 of 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 the Leaders Quadrant in its "Magic Quadrant for Business Intelligence Platforms, 1Q06." Leaders, as defined by Gartner, demonstrate breadth and depth of BI platform capabilities and deliver on enterprisewide implementations that support broad BI strategies (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, in which 884 IT executives identified top vendors for delivering value and reliability. (Read more about awards and rankings at http://www.sas.com/awards/awards.html.)

Trends and outlook for 2006

"SAS expects continued strong growth, particularly in the BRIC countries (Brazil, Russia, India and China), as more organizations take on fact-based decision making," said Goodnight. "BI for the masses," combined with the trend toward BI standardization, requires the powerful, consistent platform that only the SAS(R)9 Enterprise Intelligence Platform offers. This platform is composed of four critical elements - SAS Data Integration, SAS Storage, SAS Analytics and SAS Business Intelligence.

In 2005, organizations partnered with SAS to work on issues dealing with governance and regulatory compliance, including Basel II for the financial industry and the USA Patriot Act. SAS customers also looked to SAS to target profitable new customer or market segments.

"In 2006, these issues are fundamentally still there," said Goodnight. "The speed with which organizations want to address these issues is increasing. That pressure to innovate and respond to rapidly changing market dynamics is where our business and industry solutions, in particular, will be an enormous aid, as people modernize from legacy best-of-breed environments to a true intelligence strategy."

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(R) - 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(R). Visit us at www.sas.com.