German software giant SAP announced first quarter results yesterday afternoon which remained in line with analyst expectations and saw the company performing well in what is still an uncertain IT climate.
For the first quarter of 2003, operating income increased 60pc to €298 million compared to €186 million for the first quarter of 2002. Pro forma operating income excluding stock-based compensation and acquisition-related charges increased 28pc to €304 million compared to €238 million last year. The operating margin for the first quarter was up nine percentage points to 20pc compared to the first quarter of last year. The pro forma operating margin, before stock-based compensation and acquisition related charges, was up six percentage points to 20pc compared to last year.
Software revenues for the first quarter were €352 million, down 12pc from the first quarter of last year. Based on software revenues, the company said that it had gained additional market share in the first quarter of 2003. On a rolling four quarter basis, the company’s worldwide share of the market based on software revenues was 54pc at the end of the first quarter of 2003 compared to 51pc at the end of the fourth quarter of 2002.
Total revenues for the first quarter of 2003 were down 8pc to €1.5 billion. Product revenues, which include software and maintenance revenues, for the first quarter were €960 million. Maintenance revenues were €608 million. Consulting and training revenues were €476 million and €77 million, respectively.
“Our continuing market share gains, specifically in our competitors’ home markets, tell me that the market favours SAP’s style of business: being a leader through actions; delivering products customers really need; and offering trust and integrity,” said Hasso Plattner, co-chairman and CEO at SAP. “Our results this quarter demonstrate that our strategy is working and we are well positioned to capitalize on an economic recovery,” he said.
By Dick O’Brien
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