SAP Finishes Off Tough Year With Losing Quarter - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications

SAP Finishes Off Tough Year With Losing Quarter

Revenue fell for the quarter and full year, but company officials expect a better year in 2004.

Last year's tough economic conditions took a toll on SAP. The German software maker's 2003 revenue fell 5% to $8.93 billion from $9.42 billion the year before. For its fourth quarter ended Dec. 31, 2003, revenue was $2.82 billion, down 3% from $2.89 billion the same time a year ago.

But SAP executives predict that 2004 will be better. The company expects software revenue to increase by around 10% compared with 2003. Software revenue in 2003 dropped to $2.73 billion from $2.91 billion in 2002.

In a statement detailing the company's financials, CEO Henning Kagermann said new software, such as SAP's NetWeaver, and the company's leadership position in the enterprise software market, have "prepared us well for 2004. We believe 2004 will demonstrate the continuation of a trend that we saw evolve in the second half of 2003: clear signs that companies started picking up the pace of their software investments."

The weaker U.S. dollar had a role in SAP's lackluster sales. The company's fourth-quarter software revenue was $1.18 billion, down 3% from $1.22 billion in the same period a year ago. But excluding the effects of the weaker dollar, software revenue increased by 3.5%, SAP said.

Fourth-quarter net income dropped 11% to $537.8 million, down from $602.6 million in the year-ago quarter. Sales of SAP's legacy products--financial and human-resources applications--were down 14% year-over-year. But the company did see growth in sales for its supply-chain management apps (up 3%) and business-intelligence, enterprise portal, supplier-relationship management, and marketplace apps, which grew 14%.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
CIOs Face Decisions on Remote Work for Post-Pandemic Future
Joao-Pierre S. Ruth, Senior Writer,  2/19/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
News
CRM Trends 2021: How the Pandemic Altered Customer Behavior Forever
Jessica Davis, Senior Editor, Enterprise Apps,  2/18/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll