SAP has reported solid second-quarter earnings and sales thanks to continued strong demand for its business-management...
software in the US.
Net income in the second quarter rose 14% to €249m (£135m) compared with €219m in the same quarter a year ago.
Second quarter software revenue grew 15% to €497m from €431m the year before. At constant currency rates, software revenue was up 17%. Constant currency rates exclude the impact of fluctuations in currency exchange rates.
Total revenue, which includes maintenance and consulting in addition to software, was up 9% to €1.8bn from €1.6bn.
Software revenue in the US surged 63% to €140m in the second quarter from €86m the year before. At constant currency rates, US revenue was up 70% year-on-year.
SAP chairman and chief executive officer Henning Kagermann said that the company continues to experience a "sound economic environment in the US" while its European business has begun to show signs of "stabilisation in a more subdued economy".
SAP has not changed its outlook for 2004. The company expects software revenue to increase by around 10% compared with 2003.
The comapny added PepsiCo to its 22,600 customers in the second quarter. Earlier this month, the company acquired the software maker A2i to broaden the data management capabilities of its NetWeaver platform.
John Blau writes for IDG News Service