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7 million, an increase of 13% from the prior year quarter, and services revenue was $4.5 million, an increase of 23% from the prior year quarter.

Yuchun Lee, chief executive officer of Unica Corporation, stated, “Our revenue and non-GAAP EPS were slightly better than the preliminary expectations we shared on October 7. We remain cautious from an operating perspective in the near-term due to the challenging economic environment. At the same time, we continue to believe that Unica is well positioned from a long-term perspective. We believe enterprise marketing management represents a large market opportunity and we are still in the early stages of adoption. In addition, Unica is recognized by industry analysts and customers as the clear market leader. Our confidence in the long-term is supported by the stock repurchase program announced today.”

Lee added, “While our outlook for total revenue growth is tempered entering fiscal 2009, we expect our subscription revenue to continue growing at a rapid pace as a result of our on-demand solutions. We will continue to expand our on-demand offerings, and believe the rapid growth of our subscription revenue will improve revenue visibility over time and further enhance what has already proven to be a strong cash flow model. For example, Unica generated record cash flow in the fourth quarter and full year fiscal 2008 in spite of the challenging economic environment.”

For the quarter ended September 30, 2008, Unica reported loss from operations, in accordance with generally accepted accounting principles (GAAP), of $1.7 million, compared to loss from operations of $75,000 for the quarter ended September 30, 2007. GAAP loss from operations for the quarter ended September 30, 2008 includes $1.8 million of non-cash share-based compensation expense and $717,000 of amortization of acquired intangible assets. GAAP net loss for the quarter ended September 30, 2008 was $9.6 million compared to GAAP net income of $405,000 for the quarter ended September 30, 2007. GAAP net loss for the quarter ended September 30, 2008 includes a charge of $8.0 million to record a valuation allowance against the Company’s U.S. federal and state deferred tax assets. GAAP net loss per share for the quarter ended September 30, 2008 was $0.47 compared to GAAP net income per diluted share of $0.02 in the corresponding quarter of the prior year

For the quarter ended September 30, 2008, non-GAAP income from operations, which excludes non-cash share-based compensation expense and amortization of acquired intangible assets, was $809,000, compared to non-GAAP income from operations of $2.4 million for the quarter ended September 30, 2007. Based on a 33% non-GAAP effective tax rate, non-GAAP net income was $590,000 for the quarter ended September 30, 2008. This compares to non-GAAP net income of $2.4 million for the quarter ended September 30, 2007, when the company’s non-GAAP effective tax rate was 17%. Non-GAAP net income per diluted share was $0.03 for the quarter ended September 30, 2008, compared to $0.11 for the corresponding quarter of the prior year.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Financial results for the fourth quarter of fiscal 2008 include an adjustment to positively impact revenue by approximately $370,000, primarily relating to an issue with the Company’s recording of maintenance and subscription revenue in the fourth quarter and prior periods. The impact of this issue together with other errors originating prior to the fourth quarter of fiscal 2008 individually and in the aggregate are not material to the financial results for previously issued financial statements. The company is in the process of evaluating the impact of these matters on the company’s assessment of its internal control over financial reporting.

As of September 30, 2008, Unica had cash, cash equivalents and investments of $50.3 million, an increase compared to $45.2 million at June 30, 2008, due primarily to $5.6 million in cash provided by operating activities. At September 30, 2008, deferred revenue was $37.1 million, compared to $41.2 million at June 30, 2008.

Kevin Shone, chief financial officer of Unica, said, “As we enter fiscal 2009, we are planning to continue adding resources to the highest growth segments of the business, such as our on-demand solutions and international operations. From an overall perspective, we will be managing expense levels very closely, with a primary focus on ensuring the company’s long-term health and growth.” Shone added, “Unica generated record cash flow during fiscal 2008 and we currently expect to generate positive cash flow in fiscal 2009 as well. The company has operated in challenging market environments in the past, and we believe Unica is well positioned to manage through the current set of macro challenges.”

Additional Fourth Quarter and Recent Business Highlights:

Continued to achieve success and growth with industry leaders across a broad range of vertical markets, including financial services, communications, insurance, retail, hospitality, technology and manufacturing. New customers added during the fourth quarter include: EnvisionEMI, Kraft, Mapfre, Talbots, Vertrue, and Wehkamp, among others. In addition, the company expanded the scope of its relationship with existing customers, including Best Buy, BBVA Latin America, Boyd Gaming, Cox Communications, Deutsche Bank Belgium, Orange UK, Sogecable S.A. and US Cellular Corporation among others. Added customers for its award-winning web analytics solution, Affinium® NetInsight™, and for its marketing resource management solution, MarketingCentral, such as William S. Hein & Co., iDriveSafely.com, optionMONSTER, Invesco Perpetual, Kiwanis International, Emdeon, Mutual of Omaha, and Unique Vacations among others. Named a winner in CRM Magazine’s 2008 CRM Market Awards in the marketing automation category for the fifth consecutive year. Launched Unica Interactive Marketing™, powered by the Affinium® 7.5 product line, enabling marketers to move beyond traditional outbound push marketing by leveraging customers’ past and current behaviors to identify the best marketing message to deliver in any channel at any time. Hosted the company’s annual European user conference, the Marketing Innovation Summit Europe 2008. Attendance at the event more than doubled compared to 2007, and included presentations from leading global organizations such as BP, ING, Nationwide Building Society, Procter & Gamble, and Reed Business. Appointed Kevin Shone to chief financial officer and Vivian Vitale to vice president of human resources. Kevin brings more than 15 years of senior finance, administration and legal experience, with an emphasis on global business management for growth-stage companies. He most recently served as Vice President, Global Field Finance and Administration at Cognos, Inc. (an IBM company) and during his tenure, Cognos’ annual revenues increased from approximately $245 million to more than $1 billion. Vivian brings to Unica more than 25 years of human resources management experience, with an emphasis on talent acquisition and organization development with leading technology companies such as RSA Security, now known as RSA, the Security Division of EMC. The company announced today that its Board of Directors has authorized the repurchase of up to $5.0 million of the company's common stock from time to time on the open market or in privately negotiated transactions. Full Year Fiscal 2008 Results:

For the full year fiscal 2008, Unica reported total revenue of $121.1 million, an increase of 18% compared with fiscal 2007. In fiscal 2008, license revenue increased 10% to $42.9 million, subscription revenue increased 53% to $13.7 million, and maintenance and services revenue increased 19% to $64.5 million, in each case as compared to fiscal 2007. For fiscal 2008, maintenance revenue was $44.4 million, an increase of 11% from the prior year, and services revenue was $20.1 million, an increase of 40% from the prior year.

Unica reported a GAAP loss from operations of $3.6 million during fiscal 2008, including $6.7 million of non-cash share-based compensation expense and amortization of acquired intangible assets of $2.9 million, as compared to a GAAP loss from operations of $2.5 million during fiscal 2007. GAAP net loss for fiscal 2008 was $9.9 million, resulting in GAAP diluted net loss per share of $0.49, compared to GAAP net income per share of $0.02 in fiscal 2007. GAAP net loss for fiscal 2008 includes a charge of $8.0 million to record a valuation allowance against the Company’s U.S. federal and state deferred tax assets.

On a non-GAAP basis, excluding non-cash share-based compensation expense and amortization of acquired intangible assets, income from operations was $6.0 million in fiscal 2008, as compared to $5.8 million in fiscal 2007. Based on a 33% non-GAAP effective tax rate, non-GAAP net income was $4.8 million in fiscal 2008 compared to non-GAAP net income of $6.0 million in fiscal 2007, resulting in non-GAAP diluted earnings per share of $0.22 in fiscal 2008. This compares to non-GAAP earnings per share of $0.28 in the same period last year when the effective non-GAAP tax rate was 25%.

For the year ended September 30, 2008, Unica reported cash flow from operations of $14.3 million compared to $10.7 million for the year ended September 30, 2007.

Financial Outlook

Yuchun Lee, chief executive officer of Unica Corporation, stated, “The business environment has remained challenging in the early part of our fiscal 2009, and our expectation is that it will remain so throughout the remainder of the fiscal year. As a result, we currently estimate that our annual total revenue will grow or decline in the low single digit percentage range as compared to fiscal 2008. Within total revenue, we expect continued rapid growth in our subscription revenue, offset by an expected decline in our perpetual license revenue as a result of the current economic environment leading to longer approval cycles. From a profitability perspective, we believe strong expense management will enable the company to manage to non-GAAP operating income that is in-line with fiscal 2008 levels, with the potential for modest year-over-year growth. Combined with our large and growing base of recurring revenue sources, we expect to continue generating positive cash flow for the full year fiscal 2009.”

The preceding forward-looking information with respect to non-GAAP operating income the full year fiscal 2009 excludes share-based compensation expense and amortization of acquired intangible assets related to previous acquisitions.