By: SAP: Strong Sales and Earnings Despite Currency Headwind - Stock Market Beat - Our beat: The stock market. Our job: Beat it.

Fri, 20 Apr 2007 22:37:58 +0000

[...] When we previewed the report, we said “consensus expects $0.36 on $2.93 billion this quarter and $0.44 on $3.17 billion next. Both seem on the high side.” According to Yahoo’s currency converter, they did $2.99 billion in revenue and $0.35 in EPS. SAP continued to gain share for the first quarter of 2007. Based on software and software related service revenues on a rolling four quarter basis, SAP’s worldwide share of Core Enterprise Applications vendors(3), which account for approximately $34.8 billion in software and software related service revenues as defined by the Company based on industry analyst research, increased to 25.1% for the four quarter period ended March 31, 2007 compared to 24.5% for the four quarter period ended December 31, 2006. Compared to the four quarter period ended March 31, 2006, the year-over-year share gain was 2.4 percentage points. We believe it. Sales growth at other major vendors of software and services has not been nearly so strong. IBM (IBM – Annual Report), for example, grew 4% constant-currency and 7% as reported. Acquisitions make it difficult to ascertain Oracle’s (ORCL – Annual Report) underlying growth. Guidance was also strong: The Company expects full-year 2007 software and software related service revenues to increase in a range of 12% – 14% at constant currencies compared to 2006 growth of 12% at constant currencies. [...]

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By: SAP: Strong Sales and Earnings Despite Currency Headwind - Stock Market Beat - Our beat: The stock market. Our job: Beat it.