SAP profits up 23pc following license revenues boost

22 Apr 2004

ERP giant SAP has reported total revenues of €1.6bn, representing a 2pc increase on the same quarter a year ago. The results represent a 23pc increase in profits, or 60 cents per share, as license revenues rose for the first time in three years.

Software revenues at SAP were €370m, up 5pc on Q1 last year. The percentage of order entry from new customers was 33pc, which was the highest in the past eight quarters.

Operating cash flow at SAP increased 9pc to €859m. Free cash flow as a percentage of total revenues was 53pc.

In its business outlook for the full year 2004, SAP said that revenues are expected to increase by around 10pc on 2003, based on an assumed US dollar to Euro exchange rate of US$1.25 to €1.

SAP’s CEO Henning Kagermann commented: “Companies are looking at software investments in terms of their ability to support growth opportunities and business flexibility. With SAP NetWeaver and our comprehensive product portfolio, we are meeting the needs of our customers in all our markets.”

SAP said that headcount in the company, which employs around 300 people in Ireland with plans to employ double that number in the years ahead, increased 5pc during the quarter to a total complement of 30,166 people.

By John Kennedy