SAP AG / Results Forecast
Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company
of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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WALLDORF – January 24, 2007 – Beginning in the first quarter of 2007, and
also provided for the full-year 2006 for comparative purposes, SAP AG
(NYSE: SAP) will realign its income statement to provide additional
transparency for reporting potential new product revenue streams. Although
currently not material, the Company added a new revenue line item called
'subscription and other software related services revenue' as the basis of
the realignment, in addition to changing the name of the line item 'product
revenues' to 'software and software related services revenue.' Therefore,
'software and software related services revenue' equals the total of
'software revenue' plus 'support revenue' (formerly called 'maintenance
revenue') plus 'subscription and other software related services revenue.'
Total software and software related services revenue in 2006 were €6,605
million. SAP’s 2007 outlook is based on this realignment. In addition,
the operating margin outlook for 2007 is based on U.S. GAAP numbers. In
previous years, SAP provided its outlook for operating margin on an
adjusted basis.
The Company provided the following outlook for the full-year 2007.
- The Company expects full-year 2007 software and software related
services revenue to increase in a range of 12% - 14% at constant
currencies compared to 2006 growth of 12% at constant currencies.
- In order to address additional growth opportunities in new, untapped
segments in the midmarket, the Company will invest an additional €300
million – €400 million over eight quarters to build up a new business.
Depending on the exact timing of these accelerated investments, this
is equivalent to the Company reinvesting approximately one to two
percentage points of margin in 2007 into additional future growth
opportunities. Therefore, the Company expects the full-year 2007
operating margin to be in the range of 26.0% to 27.0% compared to the
2006 operating margin of 27.3%.
- The Company is projecting an effective tax rate of 32.5% - 33.0% for
2007.
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Information and Explaination of the Issuer to this News:
Webcast/Supplementary Financial Information
SAP senior management will host a press conference in Frankfurt today at
10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific),
followed by an investor conference at 1:30 PM (CET) / 12:30 PM (GMT) / 7:30
AM (Eastern) / 4:30 AM (Pacific). Both conferences will be web cast live on
the Company’s website at and will be
available for replay purposes as well. Supplementary financial information
pertaining to the quarterly results and the realigned income statement will
be published shortly at http://www.sap.com/investor.
About SAP
SAP is the world’s leading provider of business software*. More than 38000
customers in more than 120 countries run SAP® applications—from distinct
solutions addressing the needs of small and midsize enterprises to suite
offerings for global organizations. Powered by the SAP NetWeaver® platform
to drive innovation and enable business change, SAP software helps
enterprises of all sizes around the world improve customer relationships,
enhance partner collaboration and create efficiencies across their supply
chains and business operations. SAP solution portfolios support the unique
business processes of more than 25 industries, including high tech, retail,
financial services, healthcare and the public sector. With subsidiaries in
more than 50 countries, the company is listed on several exchanges,
including the Frankfurt stock exchange and NYSE under the symbol 'SAP.'
(Additional information at
)
(*) SAP defines business software as comprising enterprise resource
planning and related applications such as supply chain management, customer
relationship management, product life-cycle management and supplier
relationship management.
# # #
Any statements contained in this document that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Words such as 'anticipate,' 'believe,'
'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'project,'
'predict,' 'should' and 'will' and similar expressions as they relate to
SAP are intended to identify such forward-looking statements. SAP
undertakes no obligation to publicly update or revise any forward-looking
statements. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations The factors that could affect SAP's future financial results
are discussed more fully in SAP's filings with the U.S. Securities and
Exchange Commission ('SEC'), including SAP's most recent Annual Report on
Form 20-F filed with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of their
dates.
For more information, press only:
Herbert Heitmann, +49 (6227) 7-61137, herbert.heitmann@sap.com, CET
Frank Hartmann, +49 (6227) 7-42548, f.hartmann@sap.com, CET
Steve Bauer +1 610 661-3951, steve.bauer@sap.com, EST
For more information, financial community only:
Stefan Gruber, +49 (6227) 7-44872, investor@sap.com, CET
Martin Cohen, +1 (212) 653-9619, investor@sap.com, EST
DGAP 24.01.2007
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Language: English
Issuer: SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf Deutschland
Phone: +49 (0)6227 - 74 74 74
Fax: +49 (0)6227 - 75 75 75
E-mail: investor@sap.com
WWW: www.sap.com
ISIN: DE0007164600
WKN: 716460
Indices: DAX
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Hannover, Düsseldorf, Hamburg,
München; Terminbörse EUREX; Foreign Exchange(s) NYSE
End of News DGAP News-Service
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