North American Software Sales Reach $1.65 Billion in 3Q 1993
Aggressive Pricing Moderates Revenue Growth

December 7, 1993 (Washington, DC) The Software Publishers Association (SPA)
today announced that personal computer application software shipments in
North America continued to grow at a pace 30 percent above last year, but
aggressive pricing held revenue growth to a more moderate 16 percent.
Leading the growth in the third quarter of 1993 were Drawing/Paint and
Desktop Publishing programs.

Research data on sales of personal computer applications in the third
quarter of 1993 shows that software sales reached $1.65 billion, a 16%
increase from $1.42 billion in the third quarter of 1992, measured at
actual retail. For the first three quarters of 1993, sales were $4.71
billion, a 16.8% increase from the record $4.04 billion sales in the first
three quarters of 1992.

Unit sales for the quarter were up 36% from the third quarter of 1992, with
year to-date sales up 30%, an indication that average software prices have
continued to show a decline in '93.

Windows applications continued to pace the industry. For the quarter,
Windows applications sales were $808 million, a 70% increase from the
third quarter 1992.

For the first three quarters, Windows application sales totaled $2.26
billion, a 74% increase. DOS applications continued to decline in sales,
recording $471 million for the quarter, and $1.46 billion for the first
three quarters. DOS sales were 26% lower for the third quarter and 22%
lower for the first three quarters compared with '92 sales. Sales of
Macintosh applications were $276 million for the third quarter and $713
million for the first three quarters, up 11% for the quarter and 7.4% for
the three quarters.

Word processors and spreadsheets remained the largest categories, with
revenues of $219 million and $182 million in the quarter, respectively.
While they remain the largest application software categories, they also
show the greatest effects of price competition. Sales in both categories
were lower in the third quarter of 1993 than in 1992--word processor sales
were 4% lower, while spreadsheet sales were 10% lower. For the first three
quarters, word processor sales were $680 million, a 15% increase, while
spreadsheet sales were $575 million, a 4% decrease.

Sales growth in the database category slowed from the previous two
quarters, as the product introduction blitzes of the first two quarters
ended. Database sales in the quarter were up a respectable 25%, to $108
million. For the first three quarters, database sales totaled $390
million, an increase of 59%.

The Drawing and Painting and Desktop Publishing categories were the fastest
growing categories in the third quarter, as shipments of major new
products fueled growth. Drawing and painting sales were up 110% to $124
million, while sales of desktop publishing products were up 106% to $67
million for the quarter.

"The personal computer applications software industry continued to achieve
respectable growth in this third quarter," said David Tremblay, Research
Director of the SPA. "In spite of price weakness in several of the major
categories, overall industry revenue growth was solid for the quarter as
good unit growth overcame price weaknesses."

The Software Publishers Association is the principal trade association of
the PC software industry. Its 1,000 members represent the leading
publishers in the business, consumer, and education markets. Since 1988,
the SPA's ongoing surveys of the PC computing software markets have
provided the most reliable and authoritative sales, management and trends
data in the industry. The SPA has offices in Washington, DC, and Paris,
France.

Software Publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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