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SAP expects Q2 net profit of US$548mn
[July 13, 2006]

SAP expects Q2 net profit of US$548mn

( Via Thomson Dialog NewsEdge) German corporate software supplier SAP (NYSE: SAP) expects to post a pro forma net profit of 432mn euros (US$548mn) in the second quarter of 2006, up 38% compared to the same period a year ago, the company said in a statement of preliminary results.

SAP expects 2Q06 software revenues to reach approximately 621mn euros, up 8% year over year with product revenues in the range of 1.48bn euros, representing growth of 9% from the same quarter last year. Total revenues are expected to be approximately 2.2bn euros, up 9% over 2Q05.

The Americas region, including the US, Canada and Latin America, is expected to report software revenues of 239mn euros, up 18% year over year.

Though Latin America and Asia Pacific might not contribute the highest percentage of global revenues, those regions present the fastest growth opportunities due to lower levels of penetration than in Europe and the US, SAP's business development manager for Latin America, Alejandro Pifarr told BNamericas.

"In any case, SAP is focusing on developing its business for SMEs and if that is an important segment in Europe and the US, it is by far the most important segment in Latin America," Pifarr said.

The executive said SAP leads the Latin American market in the CRM, ERP and SCM markets and saw its 2005 sales grow at twice the rate as the market.

Based on its preliminary global figures, SAP estimates 2006 product revenues to increase by 13-15%, compared to 2005 with software revenues growing 15-17%.

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