SAP Reports Strong Margin Growth

October 27, 2009 by SAP AG

Company reports another quarter of strong margin growth despite a decrease in revenues (source: SAP AG)

Revenues – Third Quarter 2009

U.S. GAAP software and software-related service revenues were €1.94 billion (2008: €1.99 billion), a decrease of 3%.  Non-GAAP software and software-related service revenues were €1.94 billion (2008: €2.04 billion), a decrease of 5% (5% at constant currencies).

U.S. GAAP total revenues were €2.51 billion (2008: €2.76 billion), a decrease of 9%.  Non-GAAP total revenues were €2.51 billion (2008: €2.80 billion), a decrease of 10% (10% at constant currencies).

U.S. GAAP software revenues were €525 million (2008: €763 million), a decrease of 31% (30% at constant currencies).

Income – Third Quarter 2009

U.S. GAAP operating income was €606 million (2008: €614 million), a decrease of 1%.  Non-GAAP operating income was €674 million (2008: €731 million), decrease of 8% (7% at constant currencies). U.S. GAAP and Non-GAAP operating income were negatively impacted by restructuring charges of €21 million resulting from the previously announced reduction of positions.  The third quarter 2009 operating income was also affected by non-recurring items, particularly litigation expenses and profit resulting from reversals of provisions recorded in the accounting for the acquisition of Business Objects. The net effect of these non-recurring items was an increase of operating income by €2 million.

U.S. GAAP operating margin was 24.2% (2008: 22.2%), an increase of 2.0 percentage points.  Non-GAAP operating margin was 26.9% (2008: 26.1%), or 27.2% at constant currencies, an increase of 0.8 percentage points (1.1 percentage points at constant currencies).  The €21 million in restructuring charges resulting from the previously announced reduction of positions negatively impacted the U.S. GAAP and Non-GAAP operating margin by 0.8 percentage points.

U.S. GAAP income from continuing operations was €436 million (2008: €410 million), an increase of 6%.  Non-GAAP income from continuing operations was €488 million (2008: €497 million), a decrease of 2%.  U.S. GAAP and Non-GAAP income from continuing operations were negatively impacted by restructuring charges of €14 million, net of tax, resulting from the previously announced reduction of positions. The effective tax rate in the third quarter of 2009 was 21.0% (2008: 31.9%) and was affected by non-recurring acquisition-related items which positively impacted the third quarter 2009 tax rate by approximately 11.7 percentage points.

U.S. GAAP basic earnings per share from continuing operations were €0.37 (2008: €0.35), an increase of 6%.  Non-GAAP basic earnings per share from continuing operations were €0.41 (2008: €0.41), flat year-over-year. The restructuring charges, net of tax, resulting from the previously announced reduction of positions negatively impacted the U.S. GAAP and Non-GAAP basic earnings per share by 0.01€.

Third quarter 2009 Non-GAAP operating income excludes acquisition-related charges totaling €67 million (2008: €76 million), and third quarter 2009 Non-GAAP income from continuing operations and Non-GAAP earnings per share from continuing operations exclude acquisition-related charges totaling €52 million (2008: €87 million, which included a deferred revenue write-down).

For the complete report visit http://www.sap.com/about/investor/index.epx.

Tags:

1 comment

  1. karakral

    thanks

Leave a Reply