SAP AG / Final Results/Preliminary Results
14.01.2008
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Company Reports Record Software and Software Related Service Revenues
Very Strong Performance from Established Business
Double Digit Growth in all Regions
WALLDORF January 14, 2008 SAP AG (NYSE: SAP) announced today that after
a preliminary review of its 2007 fourth quarter results, it expects fourth
quarter software and software related service revenues*1 to be
approximately 2.48 billion (2006: 2.20 billion), representing an increase
of around 13% (around 17% at constant currencies*2) compared to the fourth
quarter of 2006. Full-year 2007 software and software related service
revenues*1 are expected to be approximately 7.44 billion (2006: 6.61
billion), representing an increase of around 13% (around 17% at constant
currencies*2) compared to the full-year 2006. The Companys full-year
software and software related service revenue growth at constant currencies
exceeded its previously published outlook.
SAP turned in another year of very strong share gains. Based on 2007
preliminary software and software related service revenues on a rolling
four quarter basis, SAPs worldwide share of Core Enterprise Applications
vendors*3, which account for approximately $36.7 billion in software and
software related service revenues as defined by the Company based on
industry analyst research, is expected to be around 28.5% for the four
quarter period ended December 31, 2007 compared to 27.0% for the four
quarter period ended September 30, 2007, and 24.5% for the four quarter
period ended December 31, 2006, representing a year-over-year share gain of
4.0 percentage points.
The strong performance in the fourth quarter represents the 16th
consecutive quarter of double digit growth in software and software related
service revenues at constant currencies*2. It resulted from a
well-balanced contribution from all regions and solid performances from
SAPs traditional as well as its focus industries.
Fourth quarter 2007 software revenues*1 are expected to be approximately
1.41 billion (2006: 1.24 billion), representing an increase of around 14%
(around 18% at constant currencies*2) compared to the fourth quarter of
2006. Full-year 2007 software revenues*1 are expected to be approximately
3.40 billion (2006: 3.00 billion), representing an increase of around 13%
(around 18% at constant currencies*2) compared to the full-year 2006. This
represents the strongest constant currency increase in software revenue
since 2000.
Total revenues*1 for the fourth quarter of 2007 are expected to be
approximately 3.25 billion (2006: 2.95 billion), which is an increase of
around 10% (around 14% at constant currencies*2) compared to the fourth
quarter of 2006. Total revenues*1 for the full-year 2007 are expected to
be approximately 10.26 billion (2006: 9.40 billion), which is an increase
of around 9% (around 13% at constant currencies*2) compared to the
full-year 2006.
Despite negative currency effects of approximately 30 basis points, SAP
expects its full-year 2007 operating margin to be around 26.5% (2006:
27.3%) which is in the middle of the previously published outlook range.
The 2007 operating margin was mainly impacted by accelerated investments to
build a business around the new SAP Business ByDesign solution to address
new untapped segments in the midmarket as announced by the Company at the
beginning of the year. Excluding these investments, SAPs operating margin
for 2007 would have been approximately 120 basis points higher. This
result demonstrates the underlying margin strength of SAPs established
business.
SAP will provide further details of its 2007 preliminary results and
outlook for the full-year 2008 on January 30th.
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Information and Explaination of the Issuer to this News:
Regional Performance
In the Americas region, software and software related service revenues*1
for the fourth quarter of 2007 are expected to be approximately 0.78
billion, which represents an increase of around 7% (around 16% at constant
currencies*2). For the full-year of 2007, software and software related
service revenues*1 in the Americas region are expected to be approximately
2.50 billion, which is an increase of around 9% (around 18% at constant
currencies*2).
In the EMEA region, software and software related service revenues*1 for
the fourth quarter of 2007 are expected to be approximately 1.40 billion,
which represents an increase of around 13% (around 14% at constant
currencies*2). For the full-year of 2007, software and software related
service revenues*1 in the EMEA region are expected to be approximately
3.98 billion, which is an increase of around 13% (around 14% at constant
currencies*2).
In the Asia Pacific Japan region, software and software related service
revenues*1 for the fourth quarter of 2007 are expected to be approximately
0.30 billion, which represents an increase of around 27% (around 32% at
constant currencies*2). For the full-year of 2007, software and software
related service revenues*1 in the Asia Pacific Japan region are expected to
be approximately 0.96 billion, which is an increase of around 19% (around
24% at constant currencies*2).
# # #
Any statements contained in this document that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Words such as 'anticipate,' 'believe,'
'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'project,'
'predict,' 'should' and 'will' and similar expressions as they relate to
SAP are intended to identify such forward-looking statements. SAP
undertakes no obligation to publicly update or revise any forward-looking
statements. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations The factors that could affect SAP's future financial results
are discussed more fully in SAP's filings with the U.S. Securities and
Exchange Commission ('SEC'), including SAP's most recent Annual Report on
Form 20-F filed with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of their
dates.
Copyright © 2008 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver 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 in several
other countries all over the world. All other product and service names
mentioned are the trademarks of their respective companies. Data contained
in this document serve informational purposes only. National product
specifications may vary.
For more information, press only:
Herbert Heitmann, +49 (6227) 7-61137, herbert.heitmann@sap.com, CET
Christoph Liedtke, +49 6227 7-50383, christoph.liedtke@sap.com, CET
Frank Hartmann, +49 (6227) 7-42548, f.hartmann@sap.com, CET
Andy Kendzie +1 (202) 312-3919, andy.kendzie@sap.com, EST
For more information, financial community only:
Stefan Gruber, +49 (6227) 7-44872, investor@sap.com, CET
Martin Cohen, +1 (212) 653-9619, investor@sap.com, EST
Footnotes
*1) Under US GAAP SAP is required to present its results of discontinued
operations (TomorrowNow) separately from its results from continuing
operations. The preliminary figures contained in this release include
results of both continuing and discontinued operations as a single lineitem. Separate presentation will be included in SAP's release on January
30. Software and software related service as well as total revenues (for
the fourth quarter and the full year 2007) in the aggregate and per region
are not expected to decrease (by more than 15 million) after excluding
discontinued operations. SAPs operating margin for 2007 is expected to be
higher by 0.3 percentage points (2006: lower by 0.1 percentage points) than
reported in this press release after separation of discontinued operations.
*2) Non-GAAP Measures
This press release may disclose certain financial measures, such as
constant currency period-over-period changes, in revenue and operating
income (as well as those described in footnote 1 above), that are not
prepared in accordance with U.S. GAAP and are therefore considered non-GAAP
measures. Our non-GAAP measures may not correspond to non-GAAP measures
that other companies report. The non-GAAP measures that we report should be
considered as additional to, and not as substitutes for or superior to,
revenue, operating income, cash flows, or other measures of financial
performance prepared in accordance with U.S. GAAP. Our non-GAAP measures
are reconciled to the nearest U.S. GAAP measure in this press release.
CONSTANT CURRENCY PERIOD-OVER-PERIOD CHANGES
We believe it is important for investors to have information that provides
insight into our sales growth. Revenue measures determined under U.S. GAAP
provide information that is useful in this regard. However, both growth in
sales volume and currency effects impact period-over-period changes in
sales revenue. We do not sell standardized units of products and services,
so we cannot provide relevant information on sales volume growth by
providing data on the growth in product and service units sold. To provide
additional information that may be useful to investors in breaking down and
evaluating sales volume growth, we present information about our revenue
growth and various values and components relating to operating income that
are adjusted for foreign currency effects. We calculate constant currency
year-over-year changes in revenue and operating income by translating
foreign currencies using the average exchange rates from the previous
(comparator) year instead of the report year.
Constant currency period-over-period changes should be considered in
addition to, and not as a substitute for or superior to, changes in
revenues, expenses, income, or other measures of financial performance
prepared in accordance with U.S. GAAP.
We believe that data on constant currency period-over-period changes have
limitations, particularly as the currency effects that are eliminated
constitute a significant element of our revenues and expenses and may
severely impact our performance. We therefore limit our use of constant
currency period-over-period changes to the analysis of changes in volume as
one element of the full change in a financial measure. We do not evaluate
our growth and performance without considering both constant currency
period-over-period changes on the one hand and changes in revenues,
expenses, income, or other measures of financial performance prepared in
accordance with U.S. GAAP on the other. We caution the readers of this
press release to follow a similar approach by considering data on constant
currency period-over-period changes only in addition to, and not as a
substitute for or superior to, changes in revenues, expenses, income, or
other measures of financial performance prepared in accordance with U.S.
GAAP.
*3) Core Enterprise Applications Vendor Share
Beginning in the first quarter of 2007, the Company began using software
and software related service revenues for defining Core Enterprise
Application Vendor Share because the Company believes that this is the most
important indicator for vendor share oriented analysis with the realignment
of its income statement structure. Prior to the first quarter of 2007, the
Company had been using software revenues for defining Core Enterprise
Application Vendor Share.
The Company provides share data based on the vendors of Core Enterprise
Applications solutions, which account for approximately $36.7 billion in
software and software related service revenues as defined by the Company
based on industry analyst research. For 2007, industry analysts project
approximately 7% year-on-year growth for core Enterprise Applications
vendors. For its quarterly share calculation, SAP assumes that this
approximate 7% growth will not be linear throughout the year. Instead,
quarterly adjustments are made based on the financial performance of a sub
set (approximately 25) of Core Enterprise Application vendors.
DGAP 14.01.2008
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Language: English
Issuer: SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf
Deutschland
Phone: +49 (0)6227 - 74 74 74
Fax: +49 (0)6227 - 75 75 75
E-mail: investor@sap.com
Internet: www.sap.com
ISIN: DE0007164600
WKN: 716460
Indices: DAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Hannover, Düsseldorf, Hamburg,
München; Terminbörse EUREX; Foreign Exchange(s) NYSE
End of News DGAP News-Service
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DGAP-Adhoc: SAP AG: SAP Announces 2007 Preliminary Results
| Source: EQS Group AG