WALLDORF - SAP AG (NYSE: SAP) today announced its preliminary financial results for the first quarter ended March 31, 2010.
|First Quarter 20101)|
|€ million, unless stated otherwise||Q1 2010||Q1 2009||% change||Q1 2010||Q1 2009||% change||% change constant currency3)|
|Software and software-related service revenue||1,947||1,741||12%||1,947||1,752||11%||10%|
|Total operating expenses||-1,952||-2,090||-7%||-1,897||-2,012||-6%||-6%|
|Operating margin (%)||22.2||12.8||9.4pp||24.4||16.4||8.0pp||7.2pp|
|Profit after tax||387||196||97%||435||263||65%|
|Basic earnings per share (€)||0.33||0.17||94%||0.37||0.22||68%|
|1) All figures are preliminary and unaudited.
2) Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures in the appendix for details.
3) Constant currency revenue and operating profit figures are calculated by translating revenue and operating profit of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period. See Explanations of Non-IFRS Measures in the appendix for details.
First quarter 2009 Non-IFRS revenue figures exclude a deferred support revenue write-down from the acquisition of Business Objects of €11 million
First Quarter 2010 Non-IFRS operating profit excludes acquisition-related charges and discontinued activities totaling €54 million (2009: €78 million). First quarter 2010 Non-IFRS profit after tax and Non-IFRS basic earnings per share exclude acquisition-related charges and discontinued activities totaling €48 million net of tax (2009: €67 million).
“We are excited by our strong momentum and our return to growth in the first quarter,” said Werner Brandt, CFO of SAP. “A solid top-line performance in combination with an increasing operating margin puts us on track to achieve our financial objective of profitable growth over the long term.”
Bill McDermott, co-CEO of SAP added, “The first quarter growth was made possible by all around solid execution in both our large, well established markets and our fast growing emerging markets. We saw strong results from the rapidly expanding demand for SAP BusinessObjects solutions, as well as in our small and midsized enterprise business. We were also pleased by the strong performance in our focus industries as our customers are turning to SAP to help their businesses run better.”
“As the environment improves and customers begin to invest for growth again, SAP is extremely well-positioned because of our broad and consistently integrated portfolio of products supporting business processes and enabling business insight through analytics,” said Jim Hagemann Snabe, co-CEO of SAP. “We have the outstanding ability to innovate technology and solutions that work seamlessly together regardless of whether they are delivered on premise, on demand, or on device.”
SAP is providing the following outlook for the full-year 2010, which is unchanged from the outlook issued on January 27, 2010:
In the first quarter of 2010, SAP closed major contracts in key regions. In EMEA: Boots UK Limited, Daimler AG, Gazprom OAO, Krones AG, VESTAS WIND SYSTEMS A/S; In the Americas: Cooper Tire & Rubber Co., Dole Food Company, Inc., El Palacio de Hierro, Jabil Circuit, Inc., McCain Foods Limited, ConAgra Foods Inc.; In Asia Pacific/Japan: A-DATA Technology Co., Ltd., Hong Tu-San Bao Hi-Tech Co., Ltd., Industry And Commercial Bank of China, Nissha Printing Co., Ltd., Shaanxi Electric Power Corp.
Webcast / Supplementary Financial Information
SAP senior management will host a conference call today at 3:00 PM (CET) / 2:00 PM (UK) / 9:00 AM (Eastern) / 6:00 AM (Pacific). The conference call will be web cast live on the Company’s website at http://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the quarterly results can be found at http://www.sap.com/investor.
SAP is the world’s leading provider of business software, offering applications and services that enable companies of all sizes and in all industries to become best-run businesses. With more than 97,000 customers in over 120 countries, SAP is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” (For more information, visit www.sap.com)
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SAP, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, R/3 and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
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Appendix – Financial Information to Follow