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SAP confirms outlook for 2002
18-04-2002
by Paula Mythen
German software giant SAP announced a revenue increase of 9 percent in its quarterly results, although net income fell sharply over the year-earlier period.
Revenues for the quarter ended March 31, 2002 were EUR1.66 billion, up from EUR1.52 billion in the corresponding period a year ago. This increase was mainly driven by product revenues, which were up 6 percent, and consulting revenues, up 18 percent.
Licence revenues fell by 12 percent, however, from EUR458 million to EUR402 million. Net income for the first quarter 2002 was EUR65 million, a sharp fall from EUR109 million in the year-earlier period. Earnings per share dropped from EUR0.35 last year to EUR0.21.
"Against a very strong first quarter last year and despite tougher market conditions, our first quarter turned out largely as we expected," commented Henning Kagermann, co-chairman and CEO of SAP AG. "As the new year began, companies in the Americas approached new software investments cautiously. Europe once again delivered an encouraging performance and contributed significantly to our overall revenue figure."
The company said that overall it anticipates a much stronger second half of the year and expects revenues for the full year to grow by approximately 15 percent.
In the quarter, revenues in the Europe, the Middle East and Africa (EMEA) region increased 11 percent from EUR796 million to EUR886 million and in the Asia-Pacific region (APA) revenues increased 4 percent from EUR178 million to EUR185 million. Revenues in the Americas grew 7 percent to EUR587 million.
First quarter 2002 operating income, before charges and acquisition related costs, rose 2 percent to EUR237 million, reflecting an operating margin of 14 percent.
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