SAP, PeopleSoft Report Mixed Results

By Renee Boucher Ferguson  |  Posted 2002-10-18 Print this article Print

Software license revenue shrinks for the bellwether ERP developers.

Two bellwethers of the Enterprise Resource Planning software industry—SAP AG and PeopleSoft Inc. —produced a mixed bag of results in their respective third quarter earnings results, which were announced late yesterday. SAPs sales improved slightly in the third quarter compared to the same period last year to $1.67 billion, up from $1.62 billion in the same period of 2001. Product revenues in the third quarter rose to $1 billion, from $966 million during the third quarter of 2001. License revenues, however, were down $11.7 million from last year to $422 million in 2002, said officials at SAP, of Walldorf, Germany.
Software revenues related to mySAP CRM (customer relationship management) were up 19 percent for the third quarter and represented about 21 percent of the total licensing. MySAP SCM (supply chain management) revenues, on the other hand, were down three percent from 2001and tallied 22 percent of SAPs total license sales.
Separately, PeopleSoft, of Pleasanton, Calif., announced that total revenue for the third quarter of 2002 was $471 million, down from $ 521 million for the same year-ago period. Net income for this past quarter tallied at $45 million, down from last years third quarter net income of $50 million. The ERP companys license revenue was $122 million for the quarter, down from $151 million for the same quarter in 2001. Service revenues for the company were up slightly, from $345 million in 2001, to $350 in 2002.

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