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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: SAM who wrote (757)	4/21/1998 2:29:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 3424

Thread, From InfoWorld--hot from the press: SAP's first-quarter fiscal '98 profits jump 72 percent By Mary Lisbeth D'Amico InfoWorld Electric Posted at 7:40 AM PT, Apr 21, 1998 German high-end applications vendor SAP said Tuesday that pre-tax profits grew by a hefty 72 percent in the first quarter of fiscal 1998, but warned not to expect similar growth over the remaining course of this financial year. The Walldorf-based software company still remains conservative in its year-long outlook, holding fast to its prediction that revenue will climb between 30 and 35 percent over the course of fiscal 1988. "We are reckoning with a weakening in growth during the second half of the year," said Henning Kagermann, executive board member and designated CEO of SAP, in a statement. SAP reported pre-tax profits of $174 million for its first financial quarter ending March 30, a 72 percent increase over the same period last year. In line with its predictions earlier this month, the vendor announced first-quarter sales of $940 million, a 63 percent rise over last year's first-quarter sales. Costs also grew by nearly as much, increasing 62 percent to total $806 million. The German vendor attributed Tuesday's financial results partly to its new focus on specific market segments, as well as the growing importance of small and medium-size businesses to the business enterprise software market. The company has increasingly tailored its main product, the R/3 high-end applications suite, to a number of different industries including the automotive and public sector businesses. SAP also cited positive currency factors, saying that 5 percent of its revenue growth and 2 percent of its profits came from currency movements. The largest contributor to SAP's first-quarter fiscal 1998 revenues came from the company's product group, which contributed $599 million in revenue, an increase of 57 percent. Growth was also strong in the areas of consulting and training, which grew 69 percent to $228 million and 91 percent to $110 million, respectively. SAP also closed a number of large deals in the first three months of 1998 with end-user organizations such as Germany's RWE AG, Phillips Petroleum in the United States, and Japan's Sakura Bank. SAP AG, in Walldorf, Germany, can be reached at sap-ag.de or sap.com. Mary Lisbeth D'Amico is a correspondent in the Munich bureau of the IDG News Service, an InfoWorld affiliate.

To: SAM who wrote (757)	4/21/1998 2:33:00 PM
From: Birdman	Respond to of 3424

SAP Sales Growth Seen Easing From Q1 RateFRANKFURT, (Reuters) - German software group SAP is likely to continue to enjoy strong sales growth this year but not at the same 62 percent pace seen in the first quarter, analysts said today. The company, which will release first-quarter results on Tuesday, would probably close out the year with sales growth in the range of 36 to 46 percent, with pre-tax profit rising slightly slower at 35 to 38 percent, analysts predicted. Though these rates account for SAP's growth moderating over the year, they still surpass the company's own prediction of 30 to 35 percent sales growth. "The first and second quarters will be extremely good due to demand in the United States and the year 2000 effect," said BHF-Bank's Michael Schatzschneider, who called SAP's forecast "completely conservative." "In the third and fourth quarters, growth rates won't be as strong because last year's quarters were very good," he said. For the full year, Schatzschneider estimated SAP sales would rise 46 percent to $4.9 billion, with pre-tax profit climbing 38 percent. He also said he might possibly raise his profit outlook.