Application Software Sales Increase 14% to $1.6 Billion in the Second
Quarter, 1993 

Home Education Fastest Growing Category

September 15, 1993 (Washington, DC) - Sales of personal computer
application software in the US and Canada reached $1.6 billion in the
second quarter of 1993, an increase of 13.9% from the second quarter of
1992 the Software Publishers Association (SPA) announced today. Unit sales
in the same period grew by 25.2%. For the first half of 1993, sales
increased 16.6% to $3.05 billion.

Sales of Windows applications grew 52.7% in the quarter, and accounted for
48% of industry revenues, or a total of $775 million. Sales of DOS
applications were $495 million, but continued to slide, declining 16.2%
for the quarter. The DOS decline would have been even larger but for a 28%
increase in DOS word processor sales. Sales of Macintosh applications
recovered this quarter, growing 14.1% to $267 million after declining in
the first quarter.

Word processors remained the largest application category, with sales of
$258 million, up 36.5%. Sales of Windows and DOS word processors increased
64% and 28%, respectively on strong shipments of new products.

The spreadsheets category was the second largest, with sales of $211
million. Sales in the category declined 8% versus the prior year quarter,
as large declines of DOS products offset growth of Windows products.

The database category was third largest, with sales of $112 million in the
quarter, an increase of 38% compared with the second quarter of 1992.
Sales of Windows databases continue to be strong. In addition, Macintosh
database sales were up 90% for the quarter, while sales of DOS databases
declined 26%.

Home Education was the fastest growing software category, with sales up 55%
to $35.7 million. Sales of home education products have been strong for
several quarters. Sales in the other two home-oriented categories were
more mixed. Entertainment software sales were up 22%, with between 16% and
26% increases in DOS, Windows and Macintosh applications sales. Finance
software sales declined 14% for the quarter, as weakness in DOS
applications (down 56%) more than off-set strength in Windows (up 58%) and
Macintosh (up 294%) applications.

"Revenue gains in this quarter were limited by both price softness and
higher than normal up-grade activity," said David Tremblay, SPA Research
Director. "Unit sales grew 25% for the second quarter, about the same as
the first quarter's 26% increase. However, revenue growth in the second
quarter was 14%, compared with 20% for the first quarter."

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. 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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