SAP will announce its fourth quarter and full year results on Wednesday and, if preliminary figures are anything to go by, will show respectable, though modest, gains.
The software vendor expects fourth quarter product revenues to be approximately €2,20-billion, representing an increase of around 8% 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% 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% compared to fourth quarter 2005 software revenues of €1,18-billion. It expects full-year 2006 software revenues to be approximately €3,10-billion, an increase of about 11% on full-year 2005 software revenues of €2,78-billion.
SAP’s worldwide share of Core Enterprise Applications vendors is expected to be around 24,2% at the end of the fourth quarter of 2006, representing around 3% share gain for 2006 compared to 2005.
Total revenues for the fourth quarter of 2006 are expected to be about €2,95-billion, an increase of about 7% on €2,75-billion reported for 2005. Total revenues for the full-year 2006 are expected to be about €9,43-billion, which is an increase of around 11% compared to €8,51-billion reported for 2005.