SAP Reports Solid Results for 2007, Aims for Repeat in 2008
February 11, 2008 Alex Woodie
The U.S. market might be in a recession, but that doesn’t appear to be slowing down ERP software giant SAP, which reported its financial results for fiscal year 2007 last week. What’s more, SAP sees 2008 shaping up much like 2007.
For SAP’s fiscal 2007, which ended December 31, the company’s revenues totaled €10.25 billion ($15.0 billion), a 9 percent increase from a year ago. Driving revenues was a strong showing in software and related services, where the company reported €7.43 ($10.9 billion), a 13 percent uptick. Operating income came in at €2.74 billion ($4.0 billion), which corresponded with just a 6 percent increase from the previous year.
Henning Kagermann, SAP’s chief executive officer, was enthusiastic about the results. “2007 represented another good year for SAP with strong growth in software and software-related services,” he said. “The outstanding performance reflects the continued success we are seeing in SAP’s established business, which will continue to be the foundation for growth heading into 2008 and beyond.”
SAP highlighted the acquisition of business intelligence software maker Business Objects as a key driver of future sales. Buoyed by BO, SAP expects to increase software and services by 24 percent to 27 percent in 2008. Total revenues are expected to increase by 12 percent to 13 percent for fiscal 2008, which is the same amount SAP forecast for 2007. (It delivered just 9 percent.)
High hopes are also being placed on Business by Design, SAP’s new Web-based midmarket offering. “We expect new innovations like SAP Business ByDesign to help us capture tremendous opportunities in untapped segments in the mid market, to augment growth going forward,” Kagermann said.