SAP Achieves Record Q4 Sales
E-business software provider, SAP AG , today announced its preliminary financial results for the fourth quarter and year ended December 31, 2001. For the year, sales increased 17 percent over 2000 to EUR 7.34 billion compared with EUR 6.27 billion in 2000.In the fourth quarter of 2001, revenues rose 7 percent over the same period last year to EUR 2.32 billion from EUR 2.16 billion in 2000. Fourth quarter 2001 operating income, before charges for stock-based compensation programs (STAR and LTI) and TopTier acquisition related charges, declined 8 percent to EUR 613 million from EUR 668 in 2000.
Operating margin, excluding stock based compensation and TopTier acquisition related charges, was 26 percent down from 31 percent in 2000. Net income for the fourth quarter 2001, adjusted for the TopTier acquisition costs and the Commerce One impact, was EUR 379 million up from EUR 375 million in 2000 and earnings per share was EUR 1.21 compared with EUR 1.19 in 2000.
“SAP is alone in providing companies and organizations with a comprehensive approach to business infrastructure software,” said Hasso Plattner, Co-Chairman and CEO of SAP AG.
“We continue to strengthen our offerings in CRM, SCM, ERP, and Marketplaces/Portals, spending on technology that unifies existing software investment and leveraging it for optimum return.”
In the quarter, revenues in Europe, the Middle East and Africa (EMEA) region increased 6 percent to EUR 1.2 billion from EUR 1.14 billion in 2000 and in the Asia-Pacific region (APA) revenues were up 8 percent to EUR 248 million from EUR 230 million in 2000. Revenues in the Americas region rose 8 percent to EUR 864 million from EUR 797 million in 2000; however, at constant currency rates, revenues in the Americas would have risen 13 percent.
“Our organization executed well in the fourth quarter, particularly given the very tough business environment. Europe was solid as anticipated, and the US exceeded our expectations and continued to gain market share,” says Henning Kagermann, Co-Chairman and CEO of SAP AG.
“Our focus now is squarely on the customer, and we are initiating a stream of new products and services as well as enhanced solutions to create an irresistible software offering,” he explains.
Product revenues in the fourth quarter rose 5 percent to EUR 1.6 billion from EUR 1.52 billion in 2000. License revenues were down 2 percent to EUR 1.03 billion from EUR 1.06 billion in 2000. Consulting and training revenues rose 1 percent to EUR 572 million from EUR 516 million 2000 and 5 percent to EUR 117 million compared with EUR 111 million in 2000, respectively.
In sales of specific software solutions the firm continued to make progress In the fourth quarter of 2001, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately EUR 196 million, representing 19 percent of total software license sales (EUR 1.03 billion).
Similarly, fourth quarter mySAP SCM (Supply Chain Management) related software revenues totaled around EUR 232 million, representing 23 percent of total software license sales..
Over the year, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately EUR 445 million, representing 17 percent of total software license sales (EUR 2.58 billion).
Full year mySAP SCM related license revenues totaled around EUR 583 million, representing 23 percent of total software license sales. These figures include revenues from designated solution contracts, as well as figures from integrated solution contracts, which are allocated based on usage surveys.
SAP expects 2002 to be another challenging year, as software sales trends continue to be unsettled in a tough economic environment. For the full year, SAP anticipates revenue to grow by around 15 percent, with stronger software license sales coming in the second half, in line with past quarterly developments.
For the whole of 2002, SAP also expects its operating margin excluding stock-based compensation and TopTier acquisition related charges to improve at least one percentage point over the 20.0 percent achieved in 2001. SAP anticipates that the improvement will become more evident in the second half as software license performance improves and the Group benefits from ongoing cost curtailment measures.
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