3rd UPDATE: SAP Slips As Sales Weaken Outside Americas
27 Julho 2010 - 10:19AM
Dow Jones News
SAP AG (SAP) Tuesday raised its 2010 sales outlook as a result
of the acquisition of U.S. software vendor Sybase Inc. (SY) and
posted a 15% rise in second-quarter net profit driven by higher
software sales in the Americas, but other markets performed less
well.
The business software giant, which competes with Microsoft Corp.
(MSFT) and Oracle Corp. (ORCL), said net profit in the quarter
ended June 30 rose to EUR491 million from EUR426 million a year
earlier.
Software and software-related services revenue--a key
performance figure that reflects revenue from software sales,
maintenance and consulting services--increased 16% to EUR2.26
billion. At constant currencies and on a non-IFRS basis, SAP's
preferred measure, the key figure was up just 8%.
The main revenue driver was the Americas, where software revenue
on a non-IFRS basis and at constant currencies rose 40%. However,
software revenue dropped by 12% in Europe, Middle East and Africa
and by 6% in Asia Pacific/Japan.
Software revenue is new business that also secures maintenance
revenue in the years ahead.
"Second-quarter headline numbers blew away consensus due to a
great performance in the Americas. But adjusted for currency
effects the result is less good with a striking divergence between
the Americas and elsewhere," said WestLB analyst Jonathan Crozier,
with an add rating on the share and EUR37.30 target price.
Co-CEO Bill McDermott attributed the weaker second quarter sales
in Asia Pacific to Japan, where the economic recovery has been
slower than elsewhere in a region where SAP posted double-digit
growth overall.
"In Europe it is more a matter of timing," McDermott said,
without elaborating. He said that of the 11,000 deals SAP secured
in the second quarter globally, just 4,000 came from Europe and
none of those was worth more than EUR3 million.
At 1220 GMT, SAP shares were down 2.1% at EUR36.49, the second
biggest faller on Frankfurt's DAX, as investors reacted to the less
convincing performance outside the Americas.
SAP tightened its view for full year software-related service
revenue, excluding Sybase, to a rise of between 6% and 8% from
previous guidance for a rise of between 4% and 8%. In 2009,
software-related service revenue was EUR8.2 billion.
SAP said it still expects its operating margin to rise to
between 30% and 31% from 27.4%.
Including Sybase, in which SAP now has a 92% stake, it expects
to increase software and software-related service revenue between
9% and 11% in 2010. The operating margin won't be influenced by the
Sybase acquisition.
The European Commission recently cleared SAP's $5.8 billion
acquisition of U.S. database maker Sybase, which last week reported
very strong earnings, buoying SAP stock.
The deal is SAP's largest since its 2007 $6.8 billion buy of
Business Objects SA, and comes as it attempts to keep pace with
Oracle in the business software market.
In June, Oracle said its fiscal fourth-quarter profit climbed
25% as it benefited from new revenue from its Sun Microsystems
acquisition, as well as strong demand for software licenses.
Still, analysts said at the time that SAP's Sybase acquisition
may increase pricing pressure on the U.S. company.
-By Archibald Preuschat, Dow Jones Newswires; +49 211 13872 18;
archibald.preuschat@dowjones.com
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