Dresden, Germany-based SAP SI’s net profit grew 78% to 8.9m euros ($10.7m) for the second quarter, and 49% to 15.6m euros ($18.8m) for the first half ended June 30, 2004. Revenue grew 32% to 86.6m euros ($104.5m) in the second quarter and 25% to 162.5m euros ($196m) for the first half of the year.
The operations of SAP SI are currently being integrated into the services operations of its majority shareholder, enterprise resource management software company SAP, as far as is legally permissible, according to a statement.
At the start of June, SAP acquired most of the 30% of shares that it did not already own in SAP SI, paying 20.40 euros ($24.61) per share, a 35% premium on the system integrator’s share price at the time. However, by the end of June SAP had only managed to own 91.14% of the company, restricting its ability to fully merge its internal services unit with SAP SI.
Marcus Berner, head of communications for SAP, told ComputerWire at the time that this would not cause any significant problems and that the company would still be able to integrate the businesses operationally. From a legal perspective SAP SI has to continue to exist as a separate entity. But from an organizational approach the customer will still get one face to the customer through SAP, and the go to market strategies can be integrated, said Berner.
Regardless, SAP SI reported impressive growth in all its market sectors, with software revenue more than doubling to 1.5m euros ($1.8m), maintenance revenue rising by 21.6% to 3.2m euros ($3.9m), and service revenue growing by 23.2% to 136.3m euros ($164.4m) for the first half. Revenue from hosting and application management totaled 20.3m euros ($24.5m), up 32.7% on the previous year’s first half.
