Company Reports Another Quarter of Strong Growth in Revenues from Software and Software Related Services – Earnings Per Share Increased 13%
’s-Hertogenbosch/Walldorf — SAP AG (NYSE: SAP) today announced its preliminary financial results for the third quarter and nine months ended September 30, 2007.
HIGHLIGHTS – Third Quarter 2007
- Software and software related service revenues for the 2007 third quarter were €1.74 billion (2006: €1.54 billion1), which is an increase of 13% (16% at constant currencies2) compared to the third quarter of 2006.
- Software revenues for the third quarter of 2007 were €715 million (2006: €642 million1), representing an increase of 11% (15% at constant currencies2)compared to the third quarter of 2006.
- Total revenues were €2.42 billion for the 2007 third quarter (2006: €2.21 billion1), which represented an increase of 9% (13% at constant currencies2) compared to the same period of 2006.
- Operating income for the third quarter of 2007 was €601 million (2006: €549 million), which was an increase of 9% compared to the third quarter of 2006.
- The operating margin for the 2007 third quarter was 24.8%, which was flat compared to the same period last year. The 2007 third quarter operating margin was impacted by investments of approximately €35 million to build a business around the new SAP Business ByDesign solution to address new untapped segments in the midmarket.
- Net income for the 2007 third quarter was €408 million (2006: €370 million), representing an increase of 10% compared to the third quarter of 2006.
- Earnings per share for the third quarter of 2007 was €0.34 (2006: €0.30), which was an increase of 13% compared to the same period last year.
Core Enterprise Applications Vendor Share3
SAP continued to gain share in the third quarter of 2007, marking the seventh consecutive quarter of share gains. Based on software and software related service revenues on a rolling four quarter basis, SAP’s worldwide share of Core Enterprise Applications vendors2, which account for approximately $35.9 billion in software and software related service revenues as defined by the Company based on industry analyst research, increased to 27.0% for the four quarter period ended September 30, 2007 compared to 26.0% for the four quarter period ended June 30, 2007, and 23.5% for the four quarter period ended September 30, 2006, representing a year-over-year share gain of 3.5 percentage points.
“We are pleased to announce another strong quarter in which we continued to report double-digit growth in software and software related service revenues in each region and additional share gains among core enterprise application vendors,” said Henning Kagermann, CEO of SAP.
Mr. Kagermann continued, “The third quarter also showed excellent results on the product side. For our established business we demonstrated further progress on the business process platform with a continued increase in the number of customers adopting both SAP ERP and SAP NetWeaver. For our new business, we held the branding launch of our new breakthrough innovation solution SAP Business ByDesign, which has gone live with 20 customers. We look forward to the remainder of the year, as we continue to invest in our business for future growth.”
Please find attached the whole English press release with additional information on:
– the Highlights of nine months 2007 (revenues, income, cash flow, share buy-back)
– their Business Outlook
– the Key Events that took place in third Quarter 2007.