SAP revenues up 24% in second quarter

SAP Philippines announced recently strong sales and profit performance for SAP globally in the second quarter, bucking a general downtrend in the industry.

In the second quarter of 2001, revenues rose 24 percent to $1.6 billion as against $1.3 billion last year. Operating income, before charges for stock-based compensation programs and Top Tier acquisition related costs, during the same period rose 72 percent to $369 million from last year’s $214 million.

Operating margin, excluding stock-based compensation and charges relating to the recent acquisition to Top Tier, improved to 23 percent as against 16 percent in 2000. Earnings before interests, taxes, depreciation and amortization (EBITDA) improved by 118 percent to $392 million from the 2000 level of $179 million.

Net income for the second quarter 2001 grew 78 percent to $179 million from $101 million in 2000.

Company executives explained that in the quarter, revenues in Europe, the Middle East and Africa (EMEA) increased 36 percent to $838 million from $617 million in 2000. In the Asia-Pacific region, revenues were up 15 percent to $191 million as against last year’s $167 million. Revenues in the Americas region rose 12 percent to $583 million.

SAP Philippines marketing and alliance manager Marivic Gamo said the company should meet expectations for the first nine months of 2001 as well. "We expect revenue for the full year 2001 to grow by more than 20 percent. Operating margin, excluding stock-based compensation and acquisition related charges, are expected to exceed the 20 percent achieved in 2000 by one to two percentage points."

Product revenues were strong in the second quarter rising 22 percent to $1.01 billion from $828 million in 2000. License revenues were up 17 percent to $563 million, while consulting and training revenues rose 35 percent and 27 percent, respectively.

For the second consecutive quarter, SAP Phils. managing director Ian Black explained that the company is providing additional information on revenues from certain specific software solutions. "In the second quarter of 2001, software revenues related to mySAP CRM (customer relationship management) reached $90 million up 55 percent from the first quarter $58 million. mySAP SCM (supply chain management) related revenues were up 46 percent from the first quarter of 2001 of $89 million," he said.

Ian added that in the SCM solution market, SAP is now the clear market leader. "These figures include revenues from designated solution contracts, as well as figures from integrated solution contracts, which are allocated based on usage surveys," Black pointed out.

"We are the acknowledged leader in e-business software solutions — no other company comes even close in the breadth and depth of our offerings," Black emphasized. "Customers and prospects trust our ability to deliver complete solutions to business challenges in any industry anywhere. We continue to expand our leadership through investments in enterprise portal solutions and exchange technology, which we consider to be significant revenue drivers of the future."