Feeds

SAP hits the numbers

Gaining ground

  • alert
  • submit to reddit

Boost IT visibility and business value

SAP, Europe's biggest software firm, has seen profits rise as it continues to gain ground on rivals.

Net profits jumped by 14 per cent year-on-year in Q2 to €249m, or €0.80 per share, broadly in line with forecasts. The was partly driven by a nine per cent increase in sales to €1.78bn.

Market watchers were cheered by a 15 per cent rise in software revenues to €497m, especially in light of the weak dollar.

The enterprise software firm says it is gaining market share in the all-important US market, where it claims to compete mainly with Oracle, PeopleSoft, Microsoft and Siebel. On a rolling four-quarter basis, the firm now controls about 37 per cent of the US market by revenues, compared with 29 per cent a year ago, SAP estimates.

With approximately €600m in global software revenues for the quarter, the firm claims to now control about 55 per cent of the world market, compared to 51 per cent a year ago.

Henning Kagermann, CEO of SAP, said: "Customers are demanding reliability, financial strength, innovative capabilities and a broad product portfolio from their software partners. Our ability to deliver on all four of these qualities, along with the investments we have made in expanding our product offerings and technology, have all contributed to our continued share gains against our peer group.

"We continue to experience a sound economic environment in the US while our European business is showing signs of stabilisation in a more subdued economy."

SAP held fast on its outlook for 2004, with software revenues expected to grow by around 10 per cent. Pro forma operating margin, which excludes stock-based compensation and acquisition-related charges, is expected to increase by around one percentage point in 2004.

Full year pro forma earnings per share, which excludes stock-based compensation, acquisition-related charges and impairment-related charges, are expected to be €4.20 to €4.30 per share.

© ENN

Related stories

Oracle-Peoplesoft merger will boost competition - SAP
SAP snuggles up to IBM and MS
Software AG sells SAP SI stake to SAP
SAP ties up with Teradata

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.