SAP Thrives On Competitors' Plight, In Part
P.J. Jakovljevic - August 17, 2001

Event Summary

SAP AG (NYSE: SAP), the leading provider of business software solutions, announced strong sales and profit performance for the second quarter ended June 30, 2001. In Q2 2001, revenues increased 24% over the same period last year from EUR 1.5 billion to EUR 1.85 billion (See Figure 1). Net income in the quarter grew up 78% to EUR 424 million compared to EUR 246 million a year earlier. Although quite aware of the current challenging environment, SAP remains confident about expectations for its operations through the first three quarters of 2001. For the nine months ending September 30, 2001, the company expects that revenue will slightly exceed the 23% growth rate achieved in fiscal 2000. SAP has also provided its extended expectations for revenue and margin performance for the full year. SAP expects revenue for the full year 2001 to grow by more than 20%, which could be of immense importance for the competitive landscape given SAP's size and the current state of the economy...