SAP AG this week reported a 14 percent jump in profits and a 15 percent increase in software revenues for its second quarter driven in part by strong sales in the United States.
The picture was just as rosy for its Australia and New Zealand operation, which reported a 30 percent increase in sales revenue over the period. Product revenues were also up 26 percent, the company said.
Globally, the German software maker reported a net profit of US$305 million for the quarter ended 30 June, compared with US$268 million for the same period a year ago. Total revenues increased nine percent to US$2.2 billion from US$1.96 billion a year ago.
Software revenues, a key performance indicator for software companies, increased to US$608.6 million from US$527.8 million a year ago. Sales in the US rose by 63 percent in the quarter, while its German business grew by 10 percent.
"A key differentiator for SAP's continued success in this competitive environment is our diversification within industries and our investment on multiple fronts such as CRM, SMB and SCM," said Geraldine McBride, CEO and MD at SAP ANZ. "We have nailed significant wins in telecommunications, public sector, retail and manufacturing," McBride said.
The company's SMB push also paid dividends. It had 195 percent growth in SMB software revenue compared to Q2, 2003. From January to July, SAP secured 36 SAP Business One and 10 mySAP all-in-one deals across ANZ.
SAP estimated that its share of the worldwide software market had increased to 55 percent from 51 percent a year ago.
The company left unchanged its full-year forecasts. Software revenues are expected to increase by about 10 percent over 2003, while operating margin, excluding stock-based compensation and acquisition-related charges, is forecast to rise about one percent.
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