Friday, January 27, 2006
AMR Research: SAP Tops the $10B Mark, Eyes $70B Market
AMR Research: SAP Tops the $10B Mark, Eyes $70B Market: "On Wednesday morning, SAP posted its financial results for the year ending December 31. Total revenue came in at Euro 8.51B, or $10.47B (based on $1.23/Euro exchange rate). This is a 12% gain from last year. Software revenue was Euro 2.78B ($3.42B), up 15% in constant currencies.
The United States continues to be a critical market, accounting for more than $1B in software revenue, up 28% in constant currencies. Total revenue for the United States exceeded $3B for the year. As you might expect, Wall Street reacted very favorably to the news, pushing the stock up 10% to set a new 52-week high: it hit $49.82 in early trading.
In the earnings press release, SAP CEO Henning Kagermann described 2006 as a �cornerstone year for SAP� as it prepares for a software market that is expected to more than double by the end of the decade. He described the �addressable� market as expanding to $70B by 2010 from $30B today. �Addressable� refers to those segments where SAP feels it can compete. This includes the infrastructure/platform market and small and midsize businesses."
The United States continues to be a critical market, accounting for more than $1B in software revenue, up 28% in constant currencies. Total revenue for the United States exceeded $3B for the year. As you might expect, Wall Street reacted very favorably to the news, pushing the stock up 10% to set a new 52-week high: it hit $49.82 in early trading.
In the earnings press release, SAP CEO Henning Kagermann described 2006 as a �cornerstone year for SAP� as it prepares for a software market that is expected to more than double by the end of the decade. He described the �addressable� market as expanding to $70B by 2010 from $30B today. �Addressable� refers to those segments where SAP feels it can compete. This includes the infrastructure/platform market and small and midsize businesses."
