In the second quarter of 2001, revenues rose 24% over the same period last year to €1.85 billion (2000: €1.5 billion). Second quarter 2001 operating income, before charges for stock-based compensation programs (STAR and LTI) and TopTier acquisition related costs, rose 72% to €424 million (2000: €246 million). Operating margin, excluding stock based compensation and TopTier acquisition related charges, improved to 23% (2000: 16%). Earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 118% to €450 million (2000: €206 million). Net income for the second quarter 2001 grew 78% to €206 million (2000: €116 million) and earnings per share for the quarter was €0.65 (2000: €0.37). Earnings per share excluding charges related to the acquisition of TopTier were up 92% to €0.71 (2000: €0.37).
We are the acknowledged leader in e-business software solutions – no other company comes even close in the breadth and depth of our offerings, commented Hasso Plattner, Co-Chairman and CEO of SAP AG. Customers and prospects trust our ability to deliver complete solutions to business challenges in any industry anywhere. We continue to expand our leadership through investments in enterprise portal solutions and exchange technology, which we consider to be significant revenue drivers of the future.
In the quarter, revenues in Europe, the Middle East and Africa (EMEA) region increased 36% to €962 million (2000: €708 million) and in the Asia-Pacific region (APA) revenues were up 15% to €220 million (2000: €192 million). Revenues in the Americas region rose 12% to €671 million (2000: €598 million); however, at constant currency rates, revenues in the Americas would have risen 6%.
Our strong operating performance this quarter was driven mostly by our ability to control on-going costs. In an uncertain business environment, SAP’s strength and commitment are a competitive advantage. Excluding the currency effects, all regions performed well; even in the Americas, where we believe our overall market share increased, said Henning Kagermann, Co-Chairman and CEO of SAP AG.
SAP confirms its earlier expectations for the first nine months of 2001. SAP has also provided its extended expectations for revenue and margin performance for the full year. SAP expects revenue for the full year 2001 to grow by more than 20%. Operating margin, excluding stock based compensation and acquisition related charges, are expected to exceed the 20% achieved in 2000 by 1 to 2 percentage points.
Product revenues were strong in the second quarter rising 22% to €1.16 billion (2000: €950 million). License revenues were up 17% to €646 million (2000: €554 million). Consulting and training revenues were strong during the second quarter, rising 35% to €529 million (2000: €393 million) and 27% to €127 million (2000: €100 million), respectively.
For the second consecutive quarter, the company is providing additional information on revenues from certain specific software solutions. In the second quarter of 2001, software revenues related to mySAP CRM (Customer Relationship Management) reached roughly €104 million up 55% from the first quarter (€67 million). mySAP SCM (Supply Chain Management) related revenues totaled around €150 million, up 46% from the first quarter of 2001 (€103 million). In the SCM solution market, SAP is now the clear market leader. These figures include revenues from designated solution contracts, as well as figures from integrated solution contracts, which are allocated based on usage surveys.
Half Year Results
For the first half, sales increased 26% over 2000 to €3.38 billion (2000: €2.68 billion). Operating income before charges for stock based compensation and acquisition charges related to TopTier was up 76% to €657 million (2000: €374 million). License revenues for the first half of 2001 rose 20% to €1.1 billion (2000: €923 million). Consulting revenues grew 36% to €987 million (2000: €725 million) and training revenue increased 21% to €236 million (2000: €195 million).
In the first half, sales in the APA region were up 20% to €398 million (2000: €331 million), in the EMEA region, revenues increased 34% to €1.76 billion (2000: €1.32 billion) and in the Americas, revenues rose 18% to €1.22 billion (2000: €1.03 billion).
