SAP records €2bn in third-quarter revenues


20 Oct 2005

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Enterprise software player SAP today reported total third-quarter revenues of €2bn, up 13pc on last year. The increase was driven by strong software revenues in EMEA and North America.

The company reported software revenues of €590m for the third quarter, representing a 20pc increase. The German software player said its revenues in the US increased 34pc to €199m while revenues in EMEA grew 6pc to €263m. Software revenues in Asia Pacific grew 18pc to €81m.

Operating income for the third quarter of 2005 was €517m, an increase of 12pc compared to the third quarter of 2004. Net income for the third quarter of 2005 was €334m, representing an increase of 15pc on the previous year.

The strong software revenue results enabled SAP to gain market share during the third quarter. On a rolling four-quarter basis, the company’ worldwide share against its peer group based on software revenues was 60pc at the end of the third quarter, up from 58pc at the end of the second quarter. In the US specifically, the company has 41pc of the market share for enterprise software.

“We had record third-quarter software revenues, we gained market share against our peer group and we extended our lead in the US,” said Henning Kagermann, CEO of SAP.

“While we continue to move forward in delivering on our enterprise service architecture roadmap, we also decided to accelerate investments,” Kagermann continued. “Therefore, in addition to rolling out the entire MySAP Business Suite and all of SAP’s industry solutions on SAP NetWeaver as planned in October, we also service enabled the MySAP Business Suite and industry solutions with more than 500 enterprise services. This was a significant milestone as we are the first company to deliver such a robust, service-enabled suite of software solutions.

“What sets us apart is that we have a clear and defined roadmap for the future of our software investments and we are investing wisely – spending on more efficient organic growth and on smart, fill-in acquisitions,” Kagermann said.

By John Kennedy