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At SAS, another record revenue year looms despite global economic turmoil

Jim Goodnight, CEO and co-founder of SAS.

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Jim Goodnight, chief executive and co-founder at SAS, has his "fingers crossed” that the world’s largest privately held software company will extend its 32-year streak of growth in revenues and profits this year.

Despite turbulence in the world economy, Goodnight said Tuesday that revenues are up more than 12 percent through the first three quarters of this year. In 2007, SAS set a record of more than $2 billion. And reflecting that growth, Goodnight told attendees at SAS’ media day that SAS has increased its employee count by some 5 percent to well over 10,000.

However, in a later interview with WRAL.com, Goodnight acknowledged that the fourth quarter could be troublesome, especially in light of the recent sharp declines on Wall Street and the global banking crisis.

“Some projects have been pushed back to the first quarter of next year,” Goodnight said of prospective business deals. He also noted that SAS has delayed some internal work.

“A few opportunities have been delayed into next year,” he said.

Noting that the fourth quarter is when SAS closes much of its business as clients seek to book expenditures before year's end, Goodnight noted that the Cary-based company will be eying expenses and income closely.

Deal flow does continue to be strong, though. “Companies are coming to us,” he said. SAS now operates more than 400 offices in more than 100 countries. In tough times, Goodnight said the SAS message is simple – and still appealing: “We can actually make money for you. We can help you save money.”

In Wall Street’s misery, Goodnight explained that SAS sees many opportunities. SAS’ data-analysis tools have grown increasingly popular in areas such as fraud detection and market forecasting.

“The more regulation there is, the better business is for SAS,” he said, noting that likely tougher requirements from the federal government will mean banks and financial institutions will implement more stringent data controls. SAS delivers those capabilities, Goodnight said.

He also noted that the private sector, such as retailers, and government agencies are increasingly looking for more ways to cut costs, improve performance and tighten auditing. SAS will continue to add new products and update existing ones for those missions, Goodnight explained.

“We are always looking for new areas to get in to,” he said.