SAP profit rises 25 percent on flat revenue in Q3

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 Euro 3.60 (US$4.19) per share than Euro 3.45, excluding stock-based compensation and charges related to acquisitions and impairments.

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

Total revenue for the quarter was Euro 1.65 billion, down 3 percent from the Euro 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 Euro 655 million, but software revenue for the quarter remained flat at Euro 433 million, compared to Euro 435 million a year earlier. Revenue from service activities including training and consulting slipped 14 percent to Euro 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 Euro 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 Euro 877 million, and remained flat in the Asia-Pacific region, the smallest region for SAP with revenue of Euro 203 million.

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