SAP revenues up 11pc in Q1

21 Apr 2005

Enterprise software giant SAP has reported total revenues for Q1 of €1.7bn, an increase of 11pc on the year. SAP CEO Henning Kagermann attributed the growth to a constant focus on innovation and maintaining a robust product portfolio.

The company continued to gain worldwide share against its peer group on a rolling four-quarter basis. SAP’s worldwide share against its peer group based on software revenues was 58pc for the end of Q1 of 2005 compared to 55pc for the end of Q4 of 2004 and 54pc for the end of Q1 of 2004.

Software revenues were €434m for Q1, representing an increase of 17pc compared to Q1 of 2004.

The operating margin for the quarter was 21.6pc compared with 21.4pc in 2004. Pro-forma operating margin for Q1 of 2005 was 22.0pc, representing an increase of around 1 percentage point compared to Q1 of 2004.

Kagermann commented: “The continued strength of SAP’s results is just another example of how far we have distanced ourselves from other software companies and the gap continues to widen. Our winning position in the industry has been demonstrated by continually out performing our competitors and delivering double-digit growth rates in software revenues and quarter-to-quarter share gains.”

He went on: “Our strength is attributable to keeping a strong focus on driving innovation, building and maintaining a robust, complete and integrated product portfolio and continuing to meet the needs and demands of our customers with a clear and concise product roadmap for the future of their software investments.

“Our strength in innovation is already delivering results with SAP NetWeaver and MySAP ERP, the first enterprise resource planning solution enabled for a services-oriented architecture, and innovation will also help drive growth into the next decade with our Enterprise Services Architecture powered by SAP NetWeaver,” Kagermann said.

By John Kennedy