- Earnings Per Share Increased Significantly to EUR 0.65
- Revenues Improved Slightly to EUR 1.7 billion
- Global Market Share Continued to Increase
's Hertogenbosch, October 17 2002 - SAP AG (NYSE: SAP), the leading provider of e-business software solutions, today announced its financial results for the third quarter and nine months ended September 30, 2002. Operating income for the third quarter of 2002 increased significantly to EUR 336 million (2001: EUR 159 million). Third quarter operating income, before charges for stock-based compensation programs and acquisition related costs, improved from the previous year to EUR 316 million (2001: EUR 201 million). The third quarter operating margin, before stock based compensation and acquisition related charges, increased to 19% (2001: 12%).
Sales improved slightly in the third quarter compared to the same period last year to EUR 1.7 billion (2001: EUR 1.65 billion). At constant currencies, revenues would have been up 10% compared to third quarter 2001. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were EUR 390 million (2001: EUR 235 million).
Net income for the third quarter of 2002 was EUR 202 million (2001: EUR 37 million), or EUR 0.65 per share (2001: EUR 0.12 per share). Excluding extraordinary gains, acquisition charges and other impairment costs of minority investments (including Commerce One), net income for the third quarter of 2002 was EUR 228 million (2001: EUR 86 million), or EUR 0.73 per share (2001: EUR 0.27 per share).
"SAP's superior technology offering, including Portals, Business Intelligence and our exchange infrastructure, combined with our solutions and service offerings, have been the catalyst for many of the strategic customer engagements signed this quarter and will continue to propel the demand for SAP solutions," stated Hasso Plattner, Co-Chairman and CEO of SAP AG. "This is an illustration of the earlier than expected payoff from our technology driven investments in TopTier and our Commerce One partnership, which have been instrumental in driving sales."
For the quarter, revenues in the Europe, Middle East and Africa (EMEA) region increased 9% to EUR 913 million (2001: EUR 841 million). Despite the concerns about a weak economic environment in Europe, EMEA is typically a strong region for SAP and the Company expects that trend to continue. Revenues in the Americas region were down 4% to EUR 586 million (2001: EUR 613 million). At constant currency rates, however, revenues in the Americas would have increased 11%. While revenues in the Americas were down, the Company is pleased with this performance and the region appears to have stabilized. Revenues in the Asia-Pacific region (APA) increased 4% to EUR 203 million (2001: EUR 195 million).
Product revenues in the third quarter rose to EUR 1.04 billion (2001: EUR 995 million). License revenues were EUR 435 million (2001: EUR 447 million) and consulting and training revenues were EUR 545 million (2001: EUR 524 million) and EUR 97 million (2001: EUR 113 million), respectively. The number of full-time equivalent employees at September 30, 2002, was 28,909, a decrease of 2% since June 30, 2002.
In the third quarter of 2002, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately EUR 93 million, up 19% from 2001 (EUR 78 million) and represented 21% of total license sales. mySAP SCM (Supply Chain Management) related revenues totaled approximately EUR 95 million, down 3% from 2001 (EUR 98 million) and represented 22% of total 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.
"Companies are continuing to make sizable, long-term commitments to software investments, even in a turbulent business environment. But, in doing so they want a provider that can offer flexible, complete solutions, and we have those capabilities," said Henning Kagermann, Co-Chairman and CEO of SAP AG. "SAP is a proven leader and will remain so, as the IT value chain evolves. We believe we can offer our customers what no other company in our industry can - a trusted business partner across the entire product lifecycle."
In a display of confidence in the Company, SAP announced that it currently intends to purchase an additional EUR 100 million of stock over the next few months under its buyback program approved at the shareholders' meeting in May 2002. So far, the Company has bought back EUR 250 million of stock in 2002. As in the past, the Company will conduct all of its share repurchases in accordance with applicable laws and regulations, especially in a manner that should not materially impact the share price as stated under German laws.
Nine Months Results
For the nine months ended September 30, 2002, sales increased 2% over 2001 to EUR 5.14 billion (2001: EUR 5.03 billion). Operating income before charges for stock based compensation programs and acquisition related charges was EUR 877 million (2001: EUR 858 million). License revenues for the nine-month period declined 14% to EUR 1.33 billion (2001: EUR 1.55 billion). Consulting revenues were EUR 1.63 billion (2001: EUR 1.51 billion) and training revenues were EUR 322 million (2001: EUR 349 million). For the first nine months of 2002, sales in the APA region were up 1% to EUR 597 million (2001: EUR 593 million). In the EMEA region, revenues increased 7% to EUR 2.78 billion (2001: EUR 2.6 billion), and in the Americas revenues declined 4% to EUR 1.77 billion (2001: EUR 1.83 billion).
Outlook
The Company has been committed to reducing costs and to allocating resources to match the longer term IT spending patterns of its customers. Thus far, the Company has met with success in its cost reduction and efficiency improvement program. Additionally, the sales pipeline remains strong and the Company expects that it will continue to gain market share. On the other hand the overall political and economic environment is currently unpredictable and it is difficult to forecast revenues. As a result, the Company removed its previous revenue guidance for 2002 and is not providing additional revenue guidance at this time. However, SAP expects its operating margin, excluding stock-based compensation and acquisition related charges, to improve at least one percentage point over the 20% achieved in 2001 even if 2002 revenues remain relatively flat compared to 2001 revenues.
Third Quarter Highlights
The Company announced Bill McDermott as its new President and CEO of the Americas. Bill McDermott will be responsible for all of SAP's business activities in the United States and Canada and will report directly to Léo Apotheker, president of Global Field Operations and executive board member of SAP AG. Bill McDermott, former executive vice president of worldwide sales operations at Siebel Systems, has more than twenty years of experience in the technology industry and has served in a variety of executive level positions.
SAP continues to gain market share and win key deals across its product range. Key contracts in the third quarter include Adobe, British Columbia, Caterpillar, and Ford, in the Americas; in EMEA adidas-Salomon, Benetton, DaimlerChrysler, and Winterthur; and in Asia/Pacific Kyushu Electric, Lee Kum Kee Foods, Oil & Gas Corp., and Sinopec among others.
SAP held its international e-business conferences, SAPPHIRE '02 Lisbon and Tokyo, attracting more than 17,000 attendees. SAP unveiled new solution innovations and showcased key customers that are leveraging SAP technology to meet the challenges of today's global business environment. More than 86 companies were on site to talk about how and why they use SAP solutions to solve their real-world business problems.
SAP rolled out the newest version of mySAP Customer Relationship Management (mySAP CRM), delivering the world's first fully portal-based CRM solution. Portal technology integrated with SAP's CRM solution provides users with the full suite of CRM functions and the ease-of-use and role-based information of the portal.
SAP extended its portfolio of cross applications (xApps), including development of the new SAP xApp Employee Productivity (SAP xEP) and the SAP xApp Resource and Program Management (SAP xRPM). SAP recently debuted xApps, which build on existing applications within and across enterprise boundaries, supporting cross-functional business processes to maximize strategic assets, realize greater return on investment, and lower total cost of ownership.
SAP is delivering on its SMB strategy with key wins and increased functionality.
SAP continues to roll out its small and midsize business (SMB) offering and recently announced that Osram Light Consulting is among the first customers to select SAP Business One to link operations to its parent company. Other current pilot users include Goebel und Mattes, Scherer Werbung, Reha Vision, Alex und Gross, Maeder Computer Systems, and Metallica.
SAP announced the creation of the SAP Global Custom Development Services organization. The new unit will concentrate all of SAP's custom development resources in a single global organization to more effectively help customers gain maximum value and competitive advantage from their technology investment.
SAP began shipping R/3 Enterprise in July. 70 customers are engaged in phase one. R/3 Enterprise provides customers with unmatched flexibility. It is built using the latest technologies including JAVA, ABAP, exchange infrastructure, and web services, all open technologies enabling customers more flexibility in upgrading their enterprise solutions.
Presentation / Conference Call / Webcast
SAP senior management will host a conference call today at 3:00 PM (CET) / 2:00 PM (GMT) / 9:00 AM (Eastern) / 6:00 AM (Pacific). This call will be web cast live at http://www.sap.com/investor and will be available for replay purposes as well.
Meer informatie, zoals omzetcijfers per regio, is te vinden op:
http://www.sap.com/company/press/press.asp?pressID=1496
Over SAP
SAP is wereldwijd marktleider in e-business software-oplossingen. Met behulp van mySAP.com verbeteren mensen overal ter wereld hun relaties met klanten en partners, stroomlijnen zij de operaties en bereiken zij aanzienlijke efficiencyverbeteringen binnen hun toeleveringsketens. Op dit moment gebruiken ruim 17.000 bedrijven verspreid over meer dan 120 landen software van SAP. Het totaal aantal SAP-installaties is wereldwijd gestegen tot boven 44.500. Met dochterondernemingen in meer dan 50 landen genereerde SAP in boekjaar 2001 een omzet van EUR 7,34 miljard. Het bedrijf is genoteerd aan een aantal beurzen, waaronder de beurs van Frankfurt en de NYSE onder het symbool 'SAP'. Meer informatie over SAP is te vinden op www.sap.com.
Voor meer informatie:
SAP Nederland B.V.
Renee de Bruin
Telefoon: 073 64 57 816
e-mail: renee.de.bruin@sap.com
Monogram Communication Strategies (MCS) BV
Mirjam Jonker
Telefoon: 023 56 28 208
e-mail: mirjamj@monogram.nl
SAP en mySAP.com zijn gedeponeerde handelsmerken van SAP AG. Alle andere merk- en productnamen zijn handelsmerken of geregistreerde handelsmerken van hun respectievelijke houders.