SAP Announces 2006 Preliminary Results (Ad Hoc News)

SAP Announces 2006 Preliminary Results (Ad Hoc News)

SAP AG (NYSE: SAP) announced today that after a preliminary review of its 2006 fourth quarter results, it expects fourth quarter product revenues to be approximately €2.20 billion, representing an increase of around 8% (around 12% at constant currencies1) compared to fourth quarter 2005 product revenues of €2.04 billion. Full-year 2006 product revenues are expected to be approximately €6.64 billion, representing an increase of around 11% (around 13% at constant currencies1) compared to product revenues of €5.96 billion reported for the full-year 2005.

In the fourth quarter 2006, the Company expects software revenues to contribute approximately €1.26 billion to product revenues, representing an increase of around 7% (around 12% at constant currencies1) compared to fourth quarter 2005 software revenues of €1.18 billion. Accordingly, the Company expects full-year 2006 software revenues to be approximately €3.10 billion, representing an increase of around 11% (around 13.5% at constant currencies1) compared to full-year 2005 software revenues of €2.78 billion.

2006 represented another year of strong share gains for SAP. Based on the 2006 preliminary software revenue results, SAP’s worldwide share of Core Enterprise Applications vendors2, which account for approximately $16.4 billion in software revenues as defined by the Company based on industry analyst research, on a rolling four quarter basis is expected to be around 24.2% at the end of the fourth quarter of 2006, representing around 3.0 percentage points of share gain for 2006 compared to 2005.

Total revenues for the fourth quarter of 2006 are expected to be approximately €2.95 billion, which is an increase of around 7% (around 12% at constant currencies1) compared to €2.75 billion reported for 2005. Total revenues for the full-year 2006 are expected to be approximately €9.43 billion, which is an increase of around 11% (around 12% at constant currencies1) compared to €8.51 billion reported for 2005.

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