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WALLDORF – January 13, 2011 – After a preliminary review of its 2010 fourth quarter performance, SAP AG (NYSE: SAP) today announced the following preliminary financial results for the fourth quarter and full year ended December 31, 2010.

Fourth Quarter 2010

  • IFRS software revenue: approximately €1.50 billion (2009: €1.12 billion), an increase of around 34% (around 24% at constant currencies).
  • IFRS software and software-related service revenue: approximately €3.26 billion (2009: €2.57 billion), an increase of around 27%. Non-IFRS software and software-related service revenue: approximately €3.30 billion (2009: €2.57 billion), an increase of around 28% (around 20% at constant currencies).
  • IFRS total revenue: approximately €4.04 billion (2009: €3.19 billion), an increase of around 27%. Non-IFRS total revenue: approximately €4.08 billion (2009: €3.19 billion), an increase of around 28% (around 19% at constant currencies).
  • Non-IFRS operating margin: approximately 39% (2009: 35.5%), or approximately 38% at constant currencies, an increase of around 4 percentage points (around 3 percentage points at constant currencies). In contrast to the respective quarter in 2009, the fourth quarter of 2010 was not materially impacted by restructuring expenses which had, in the fourth quarter of 2009, negatively impacted the Non-IFRS operating margin by 0.3 percentage points.

“We are pleased to announce the best software sales quarter in the history of SAP. We achieved outstanding growth in all regions and customer segments,” said Bill McDermott, Co-CEO of SAP. “This result is clear proof that focusing on innovation and customer value is the right strategy,” said Jim Hagemann Snabe, Co-CEO of SAP.

Full Year 2010

  • IFRS software revenue: approximately €3.26 billion (2009: €2.61 billion), an increase of around 25% (around 16% at constant currencies).
  • IFRS software and software-related service revenue: approximately €9.78 billion (2009: €8.20 billion), an increase of around 19%. Non-IFRS software and software-related service revenue: approximately €9.85 billion (2009: €8.21 billion), an increase of around 20% (around 13% at constant currencies).
  • The Company’s full-year 2010 Non-IFRS software and software-related service revenue growth rate of around 13% at constant currencies exceeds its previously published outlook range of 9% – 11%.
  • IFRS total revenue: approximately €12.45 billion (2009: €10.67 billion), an increase of around 17%. Non-IFRS total revenue: approximately €12.52 billion (2009: €10.68 billion), an increase of around 17% (around 11% at constant currencies).
  • Non-IFRS operating income: above €3.9 billion. Non-IFRS operating margin: approximately 31.5% (2009: 27.4%), or approximately 30.5% at constant currencies, an increase of around 4 percentage points (around 3 percentage points at constant currencies). The Company’s full-year 2010 Non-IFRS operating margin at constant currencies at around 30.5% is in line with the Company’s previously published outlook range of 30 – 31%. The full year 2010 Non-IFRS operating margin was not materially impacted by restructuring expenses which had negatively impacted the Non-IFRS operating margin by 1.8 percentage points in 2009.

The company has not yet completed its preliminary review of the appropriate re-measurement of the provision recorded for the TomorrowNow litigation following the jury verdict of USD 1.3 billion released in November 2010. The expense resulting from this re-measurement impacts SAP’s IFRS operating margin but does not have an effect on SAP’s Non-IFRS operating margin. Therefore, the company does not yet have available and cannot yet disclose preliminary fourth quarter and full year 2010 IFRS profit and IFRS operating margin numbers or reconciliations from the disclosed Non-IFRS operating margin to the IFRS operating margin.

The company expects that the re-measurement of the provision recorded for the TomorrowNow litigation will have significant negative impact on SAP’s preliminary fourth quarter and full year 2010 IFRS operating profit and IFRS operating margin. The company also expects, as a consequence, that the fourth quarter and full year 2010 IFRS tax rate will be lower than the Company’s previous expectations of 27.5 – 28.5%.

The deferred support revenue write-down from acquisitions and the acquisition-related charges which are eliminated for the purpose of SAP’s Non-IFRS revenue and operating margin numbers are expected to amount, in the fourth quarter 2010, to €36 million and €98 million respectively (full year 2010: €72 million and €301 million respectively).

SAP will provide further details of its 2010 preliminary results and outlook for the full-year 2011 on January 26th.

About SAP

SAP is the world’s leading provider of enterprise application software, offering solutions that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 105,000 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” For more information, visit www.sap.com.

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 © 2010 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, 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 Software Ltd. in the United States and in other countries. Sybase and Adaptive Server Enterprise, iAnywhere, Sybase 365, SQL Anywhere and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. 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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