Software revenues for the full year of 2003 are expected to be approximately 2.15 billion euro, representing a decline of 6 per cent compared to the 2.29 billion euro reported for 2002. On a constant currency basis, however, full year software revenues were up by approximately 1 per cent compared to 2002. Total revenues for the full year are expected to be slightly above 7.0 billion euro, which is 5 per cent lower than total revenues of 7.4 billion euro reported for 2002. On a constant currency basis, total revenues for the full year were up by approximately 3 per cent compared to 2002.
On the basis of these figures, SAP expects to significantly exceed its previously published target for pro forma operating margin and pro forma earnings per share. The Company now expects its 2003 pro forma operating margin to increase by approximately 4 percentage points to around 27 per cent (2002: 23 per cent). The 2003 pro forma operating margin can be reconciled to the operating margin by adjusting for stock-based compensation (approximately 130 million euro) and acquisition-related charges (approximately 24 million euro). SAP will provide further details of its 2003 preliminary results on January 22.
Source: SAP AG