German ERP (enterprise resource planning) software company SAP AG today predicted record fourth-quarter earnings due in large part to strong sales of its MySAP.com 'Net applications. Based on the forecasts, revenue growth for 1999 will meet the company's yearly targets, SAP announced today.
For fiscal 1999 as a whole, SAP is predicting achieving its targeted revenue growth of between 15 percent and 20 percent due to strong sales of new software licenses during the fourth quarter of 1999, the company said in a statement issued today.
Total revenue for the fourth quarter grew by an estimated 25 percent over the same period last year, according to SAP.
Revenue for new software licences, including MySAP.com, was particularly strong at nearly 800 million euros (US$824 million) in the fourth quarter of 1999, an increase of around 40 percent over the year-ago quarter and a rise of 150 percent over the third quarter of 1999, SAP said.
Due to its record software license sales and additional income of close to 200 million euros as a result of the sale of equity investments, SAP predicts its fourth-quarter 1999 pretax income will double the 712 million marks the company earned in the fourth quarter of 1998. [See "SAP Pretax Income Down 15 Percent in Q4," Jan. 26, 1999.]SAP intends to provide more details in its 1999 preliminary results announcement which are due out on Jan. 24.
Based in Walldorf, Germany, SAP can be reached at +49-6227-747474 or at http://www.sap.com/.