April 20, 2006
Strong software sales drive SAP's earnings higher
SAP's software revenue in the Americas grew by 47 percent over last year
Recommend ThisStrong software sales in the Americas drove SAP's revenue and net income higher during the first quarter, the company said Thursday.
SAP reported first-quarter revenue of €2.04 billion ($2.46 billion, as of March 31, the last day of the period being reported), up 18 percent at over the same period last year.
The company's net income climbed 11 percent, to €282 million.
SAP CEO Henning Kagermann called the quarter "a good start" to the year and attributed the company's growth to a high level of customer satisfaction.
The company's performance was particulary strong in the Americas, where software revenue grew by 47 percent over the same quarter last year, to €228 million. Of that, €165 million came from the United States, representing growth of 25 percent over last year.
SAP's total first-quarter software revenue was €528 million, compared to €434 million during the first quarter of 2005.
SAP expects its product revenue to increase by 13 percent to 15 percent during 2006, with software revenue to rise by 15 percent to 17 percent, the company said, reaffirming its earlier guidance.
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