SAP announces solid Q4 earnings plus upbeat 2003 outlook

SAP AG - the German maker of business-management software, posted higher fourth-quarter earnings Thursday and gave an upbeat outlook for 2003 despite market uncertainties.

EARNINGS - Net profit for the quarter ending Dec 31 was €474m, up from €319m a year earlier, SAP said Revenue slipped to €2.28bn from €2.32bn a year ago. Full-year earnings were €509m, down from €581m in 2001.

Revenue for the year rose to €7.41bn from €7.34bn, thanks to stronger maintenance and consulting revenues. License sales, the key measure of software demand, fell to €2.29bn in 2002, from €2.58bn in 2001.

2003 FORECAST - Assuming modest revenue growth, SAP said it expects to improve its profitability in 2003, in part through tight cost controls -- even though the market for its products is depressed.

Despite the continuing unpredictable political and economic environment, the company expects that it will continue to gain market share and increase profitability in 2003. Shares in SAP rose 2.9 percent to €86.02 on the Frankfurt exchange.