SAP, PeopleSoft Report Mixed Results
Software license revenue shrinks for the bellwether ERP developers.Two bellwethers of the Enterprise Resource Planning software industrySAP 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.