Peter Sayer
Executive Editor, News

SAP profit rises 25 percent on flat revenue in Q3

news
Oct 16, 20032 mins

Company saw strong growth in U.S. software sales

Enterprise software provider SAP AG reported a 25 percent year-on-year increase in net profit for the third quarter of 2003 Thursday, although total revenue changed little from the year-earlier quarter.

SAP, in Walldorf, Germany, also revised its full-year projections upward, saying that it expects its pro-forma earning per share to be closer to €3.60 ($4.19) per share than €3.45, excluding stock-based compensation and charges related to acquisitions and impairments.

The company reported net income of €252 million ($292 million as of Sept. 30, the last day of the period reported), up from €202 million in the corresponding quarter last year, for earnings per share of €0.81.

Total revenue for the quarter was €1.65 billion, down 3 percent from the €1.7 billion reported in the year-earlier quarter, the company said. On a constant currency basis, however, revenue rose 3 percent.

SAP saw revenue gains from its maintenance activities, up 9 percent to €655 million, but software revenue for the quarter remained flat at €433 million, compared to €435 million a year earlier. Revenue from service activities including training and consulting slipped 14 percent to €550 million.

Around the world, SAP saw the strong growth in software sales in the U.S., where software revenue for the third quarter was 35 percent up on a year earlier, or 54 percent on a constant-currency basis. Throughout the Americas, revenue slipped 2 percent to €572 million, or a rise of 11 percent on a constant-currency basis. Revenue in Europe, the Middle East and Africa (EMEA) slipped 4 percent to €877 million, and remained flat in the Asia-Pacific region, the smallest region for SAP with revenue of €203 million.