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SAP's earnings surge
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April 19, 2001: 3:54 a.m. ET
Europe's largest software maker defies slowdown, forecasts higher sales
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LONDON (CNN) - Europe's largest software company SAP said first-quarter net income more than doubled and forecast rising sales in the months ahead.
The world's No. 1 maker of business management software said net income rose to  117 million ($104 million) from 56 million in the same period last year.
The Walldorf, Germany-based company said first-quarter operating profit climbed a more-than-expected 82 percent to 233 million as revenue jumped 29 percent to 1.5 billion.
SAP achieved its strong results against a background of an economic slowdown and lower corporate spending, particularly in the U.S., and as technology companies on both sides of the Atlantic reduced profit forecasts.
Shares in the UK's Autonomy (AU-), which makes software to manage data on the Internet, plunged 52 percent on April 6 after it issued a revenue warning, citing a slowdown in demand in the U.S. and Europe.
SAP's strong results included a doubling of earnings per share in the first three months to 0.36 euro from 0.18 euro in the same period last year. The company also forecasts strong results in the months ahead.
"For the nine months ending September 30, 2001, the company expects that revenue will slightly exceed the 23 percent growth rate achieved in fiscal year 2000," SAP said in a statement.
This is the first time SAP has given guidance on earnings beyond the first half.
Although the current business environment is challenging, Chief Executive Henning Kagermann said, the company is "extremely well positioned to compete."
SAP product revenues in the first quarter rose 27 percent to 943 million compared with 742 million last year.
License revenues grew 24 percent to 458 million from 369 million, the company said, and consulting revenues increased 38 percent to 458 million.
Europe remained SAP's largest market, with revenue rising 31 percent to 796. But the German company also performed well in the Americas, boosting sales by 26 percent to 550 million.
SAP shares rose more than 7 percent to 164.85 in Frankfurt trading after the results were announced. 
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