SPS COMMERCE CONTINUES RAPID GROWTH IN 2005 WITH 69% INCREASE IN INTEGRATED SOFTWARE-AS-A-SERVICE EDI CONTRACTS

Hosted EDI Service Market Leader Adds More Than 5,500 Subscriptions in 2005

Minneapolis, Minn., Feb. 6, 2006 - SPS Commerce, the leader in hosted Electronic Data Interchange (EDI) software, today announced double-digit growth for fiscal year 2005 as the company signed more than 5,500 new subscriptions for its hosted EDI and supply chain services. Much of this accelerated growth was a result of the continuing market trend towards integrating hosted EDI services directly with an organizations accounting or financial systems. New customer contracts for SPS File Integration service grew by 69 percent in 2005, as many manufacturers and retailers opted to replace their internal EDI software with SPS hosted service..

In 2005, SPS Commerce recognized significant growth in its overall financial performance and operations including:

  • 69% growth in integrated EDI service contracts
  • 5,500 new subscriptions
  • 106% growth in catalog subscriptions
  • 20 straight quarters of revenue growth
  • 50% increase in U.S. headcount

“In 2005, the growth of Software-as-a-Service led many organizations to ask themselves three questions - Is EDI our core competency? Is my internal EDI system reliable? Is it cheaper to have an in-house EDI application or a hosted service?” said Archie Black, president and CEO of SPS Commerce. “When weighing the opportunity cost of using company resources to manage EDI instead of other revenue-generating activities, the need to mitigate the risks of EDI staff turnover and system upgrades, and the costs of maintaining an internal system, thousands of organizations demonstrated they were ready for hosted EDI services, the alternative to EDI software. In 2005, we saw SPS customers and transactions grow like never before, and are bullish about our growth in 2006.”

SPS Commerce signed thousands of new or expanding customer contracts in 2005 with organizations including 180s, Cabelas, Camping World, Disguise, Gelstat, Johnson Outdoors, Kershaw Knives, La Jolla Golf Club Company, Land OLakes, Leslies Poolmart, Mauers Quickswing, Northern Tool + Equipment, Too Inc., WMH Tool Group, Zion Rootswear and many more. SPS customers include suppliers, retailers and distributors looking to do EDI for the first time, as well as a growing number of organizations that opted to replace their internal EDI software systems in favor of using SPS hosted EDI services.

Today, SPS Commerce serves customers in more than 43 countries worldwide.