SAP SE

Earnings Release • Jan 13, 2004

News Details

Ad-hoc | 13 January 2004 11:35

SAP to Report Strong Profitability Growth in 2003

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– SAP to Report Strong Profitability Growth in 2003 WALLDORF – January 13, 2003 – SAP AG (NYSE: SAP) today announced that after a preliminary review of its fourth quarter results, it expects fourth quarter software revenues to be approximately EUR930 million, representing a decrease of 3% compared to fourth quarter 2002 software revenues of EUR958 million. However, on a constant currency basis, fourth quarter software revenues were up by 4% compared to the fourth quarter of 2002. The software revenue results were achieved mainly through strong performances in the United States and Germany. Total revenues for the fourth quarter are expected to be approximately EUR2.2 billion, which is down 3% from the EUR2.3 billion reported in the same period last year. On a constant currency basis, fourth quarter total revenues were up by 4% compared to the fourth quarter of 2002. Software revenues for the full year of 2003 are expected to be approximately EUR2.15 billion, representing a decline of 6% compared to the EUR2.29 billion reported for 2002. On a constant currency basis, however, full year software revenues were up by approximately 1% compared to 2002. Total revenues for the full year are expected to be slightly above EUR7.0 billion, which is 5% lower than total revenues of EUR7.4 billion reported for 2002. On a constant currency basis, total revenues for the full year were up by approximately 3% compared to 2002. On the basis of these figures, SAP expects to significantly exceed its previously published target for pro forma operating margin and pro forma earnings per share. The Company now expects its 2003 pro forma operating margin to increase by approximately 4 percentage points to around 27 % (2002: 23%). The 2003 pro forma operating margin can be reconciled to the operating margin by adjusting for stock-based compensation (approximately EUR130 million) and acquisition-related charges (approximately EUR24 million). SAP will provide further details of its 2003 preliminary results on January 22. end of ad-hoc-announcement (c)DGAP 13.01.2004 ——————————————————————————– WKN: 716460; ISIN: DE0007164600; Index: DAX Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard) und Stuttgart; Freiverkehr in Düsseldorf, Hamburg, Hannover und München; EUREX; Swiss Exchange; London; NYSE 131135 Jän 04