fred,
Thanks for the great news!
Here are some details:
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SAP announces 61% Sales Growth in the First Nine Months of 1997 to DM 3.8 Billion
Walldorf, October 22, 1997 - SAP AG, the world's leading provider
of enterprise business software, continued its strong performance
in the third quarter of 1997. Third-quarter revenues increased by
82% to DM 1,417 million as against the prior year, while pretax
profits rose by 86% to DM 251 million. In the first nine months of the
year sales grew by 61% to DM 3.8 billion (US $2.2 billion*). Pretax
profits were up 64% to DM 833 million (US $472 million). SAP's US
listing, announced earlier this year, will probably take place in the
third quarter 1998.
SAP's vigorous sales growth continues to be fueled by strong
demand for enterprise business application software and favorable
foreign currency exchange rates. The company is also profiting
extensively from the market's positive reaction to its latest product
innovations and announcements. The accelerated rate of growth in
the third quarter must of course be measured against last year's low
baseline figures. "We expect sales growth to slow in the fourth
quarter," said Dietmar Hopp, Spokesman of the SAP AG Executive
Board. "For the year as a whole, though, we are confident that we
will achieve a revenue increase of 50%, if currency remains in our
favor," Hopp continued.
The substantial sales growth in the first nine months of the year was
matched by an almost equal rise in costs, as SAP continued to
expand development capacity, infrastructure and sales and
marketing power in existing as well as new markets and industries.
Costs rose by 60% to DM 3.1 billion, slightly less than sales growth
(+61% to DM 3.8 billion). The pretax profit margin improved from
21% to 22%. Exchange rate impacts amounted to DM 282 million
on revenues and 108 million on pretax profits. The rise in costs
(+81% to DM 1,188 million) was also lower than the increase in
sales in the third quarter.
Sales in the Americas region rose 95% to DM 1,637 million (US
$927 million) in the period under review. In Germany revenues grew
20% to DM 791 million (US $448 million). In the other European
markets sales grew 52% to DM 812 million (US $460 million), and
in the Asia-Pacific area revenues increased by 72% to DM 515
million (US $292 million). As against the third quarter of 1996, sales
were up 113% to DM 641 million in America, 27% to DM 284
million in Germany, 91% to DM 270 million in the rest of Europe and
106% to DM 200 million in the Asia-Pacific area. The proportion of
revenues generated outside Germany increased to 79% compared
with 73% in the same period in 1996.
"We are now seeing even broader and deeper market demand for
SAP's solutions. In the mid-size market, AcceleratedSAP and
TeamSAP have basically eliminated implementation concerns, as
we have clearly demonstrated the significant returns that mid-sized
companies can realize from R/3," said Paul Wahl, CEO of SAP
America, Inc. and member of the SAP AG Executive Board. "We
have also signed impressive new customers in public sector,
aerospace/defense and other new industries, as we successfully
expand our industry focus and coverage. This success should
continue as we make significant inroads into new industry sectors."
Rising 55% to DM 2.5 billion, product revenues accounted for the
largest share of sales in the first nine months of 1997. Revenue
from consulting operations increased 67% to DM 839 million and
training revenues grew 92% to DM 400 million. The percentage of
revenues from product sales totaled 66% compared to 69% in the
first nine months of 1996. Sales of the R/3 client/server system,
SAP's flagship product, soared 62% to DM 2.3 billion. The R/2
mainframe system generated revenues of DM 168 million (1996:
DM 177 million).
Between September 30, 1996 and September 30, 1997 headcount
grew by 42% to 11,998. SAP created 1,153 new positions in
Germany over the last 12 months, bringing the total workforce to
5,193 at the end of the reporting period. SAP's international
headcount rose from 4,431 to 6,805 during the same period.
Latest version of R/3 to be rolled out on schedule SAP will ship its new version of the R/3 System, Release 4.0, as scheduled before year end; 4.0 will be released on a general basis at the end of the second quarter of 1998. Release 4.0 enhances the R/3 System appreciably by adding functionality for the accounting,logistics, and HR applications as well as complete and mature industry solutions. These include packages for the public sector, utilities, and retail industries. SAP is the first software provider to offer a complete retail solution covering the whole value chain, extending from product development to final consumer. "R/3 4.0 will not only be delivered on schedule, it will offer more added functionality than originally announced," stressed Prof. Dr. Henning Kagermann, member of the SAP AG Executive Board. SAP expects to bring forward its listing on a US stock exchange(originally planned for late 1998) to the third quarter of 1998 as the preparations have progressed faster than expected. SAP hopes that the German Parliament will enact the appropriate legislation that will allow the company to report one set of consolidated financial statements in US GAAP (Generally Accepted Accounting Principles), as well as buy back shares of its stock.
SAP AG preference and common shares are listed on the Frankfurt
Stock Exchange, as well as a number of other exchanges. SAP is a
component of the DAX, the index of 30 German blue chip companies. In the US, SAP's unrestricted ADR, each equivalent to one-third of an SAP preference share, trades over the counter under the symbol "SAPHY".
Information on the SAP AG preference shares is available on
Bloomberg under the symbol SAG3 GR, on Reuters under SAPG_p.F or IB and on Quotron under SAGVD.EU. Information on the SAP common shares is available on Bloomberg under the symbol SAG GR, on Reuters under SAPG.F and on Quotron under
SAGR.EU.
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Ibexx |
