Web product sales boost SAP results
E-business software solutions provider SAP has posted strong fourth-quarter and full-year results with revenues up 31% and 23% respectively.
Revenues for the German ERP vendor grew to Euro 2.164bn in the last quarter of 2000, thanks largely to a 412% increase in sales of its web-based e-business applications platform ‘mysap.com’.
Mysap.com revenues rose to Euro 661m compared to just Euro 129m a year ago and represented 63% of total license revenues in the fourth-quarter. In addition component-based software sales grew 30% to Euro 1.056bn and consulting revenues swelled by 27% to Euro 517m.
Pre-tax profit margins grew to 30% of sales, while pre-tax profit (excluding employee stock options) stood at 21% or Euro 583m, up Euro 102m on fourth-quarter profits in 1999.
Full-year results were equally strong, with revenues growing to Euro 6.26bn, compared with sales of Euro 5.11bn for 1999, with earnings per share up 31% at Euro 2.86. Mysap.com accounted for Euro 1.3bn of yearly revenues, or 53% of licensing revenue.
Henning Kagermann, co-chairman and CEO of SAP AG said: ‘These results confirm SAP’s leadership in providing complete e-business solutions that companies want.’
He added: ‘Our organisation is focused and energised. When you combine this with the growing customer understanding of the power of mySAP.com and our strong pipeline, 2001 looks like another very good year for SAP.’
However, revenue growth for SAP’s Americas operations were lower than other regions with sales growing by only 14% to Euro 797m, compared to 38% growth recorded in its Asia Pacific operations and a 30% increase in its combined European, Middle Eastern and African zones.
SAP is considered, along with Baan, Peoplesoft, JD Edwards and Oracle, as one of the ‘big five’ ERP companies.
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