Strong Software Sales Boost SAP’s Earnings

Strong software sales in the Americas drove SAP’s revenue and net income higher during the first quarter, the company said Thursday.

SAP reported first-quarter revenue of 2.04 billion euros (US$2.46 billion, as of March 31, the last day of the period being reported), up 18 percent over the same period last year.

The company’s net income climbed 11 percent, to 282 million euros.

SAP Chief Executive Officer Henning Kagermann called the quarter “a good start” to the year and attributed the company’s growth to a high level of customer satisfaction.

The company’s performance was particulary strong in the Americas, where software revenue grew by 47 percent over the same quarter last year, to 228 million euros. Of that, 165 million euros came from the United States, representing growth of 25 percent over last year.

SAP’s total first-quarter software revenue was 528 million euros, compared to 434 million euros during the first quarter of 2005.

SAP expects its product revenue to increase by 13 percent to 15 percent during 2006, with software revenue to rise by 15 percent to 17 percent, the company said, reaffirming its earlier guidance.

-Steven Schwankert, IDG News Service

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