<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the six-month period ended June 30, 1999
SAP AKTIENGESELLSCHAFT
SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG
(Exact name of registrant as specified in its
charter)
SAP CORPORATION
SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING
(Translation of registrant's name into English)
Neurottstrasse 16
69190 Walldorf
Federal Republic of Germany
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______.
<PAGE> 2
SAP AKTIENGESELLSCHAFT
SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG
FORM 6-K
On July 20, 1999, SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der
Datenverarbeitung, a stock corporation organized under the laws of the Federal
Republic of Germany (the "Company"), issued a Press Release announcing its
results for the six-month period ended June 30, 1999, which Press Release is
attached as Exhibit 99.1 hereto and incorporated by reference herein.
Any statements contained in the Exhibit hereto that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities Litigation
Reform Act of 1995. Words such as "believe," "estimate," "intend," "may,"
"will," "expect," and "project" and similar expressions as they relate to the
Company are intended to identify such forward-looking statements. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations. The factors that could affect the Company's future financial
results are discussed more fully in the Company's filings with the U.S.
Securities and Exchange Commission (the "SEC"), including the Company's Annual
Report on Form 20-F for 1998 filed with the SEC on May 18, 1999. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of their dates.
1
<PAGE> 3
EXHIBITS
Exhibit No. Exhibit
99.1 Press Release, dated July
20, 1999.
2
<PAGE> 4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SAP AKTIENGESELLSCHAFT SYSTEME,
ANWENDUNGEN, PRODUKTE IN DER
DATENVERARBEITUNG
(Registrant)
By: /s/ Henning Kagermann
__________________________________
Name: Prof. Dr. Henning Kagermann
Title: Co-Chairman and CEO
By: /s/ Dieter Matheis
__________________________________
Name: Dieter Matheis
Title: Chief Financial Officer
Date: July 23, 1999
3
<PAGE> 5
EXHIBIT INDEX
Exhibit No. Exhibit
99.1 Press Release, dated July
20, 1999.
4
<PAGE> 1
EXHIBIT 99.1
PRESS
INFORMATION SAP LOGO
FOR IMMEDIATE RELEASE
Contact: Kevin S. McKay
SAP America
001-610-355-4060
-or-
Gundolf Moritz
SAP AG
0049-6227-7-44872
-or-
James P. Prout
Taylor Rafferty Associates
001-212-889-4350
SAP REPORTS FIRST-HALF SALES GROWTH OF 17% TO EUR 2.34 BILLION
WALLDORF, GERMANY -- JULY 20, 1999-- SAP AG (NYSE: SAP) today announced
that its sales for the first half of 1999 grew 17% to EUR 2.34 billion
from EUR 2.0 billion in the same period last year. Net income in the first
half was down 4% to EUR 240 million (1998: EUR 250 million), while
income before income taxes fell 5% to EUR 420 million (1998: EUR 441
million).
Second quarter revenues rose 13% to EUR 1.26 billion (1998: EUR 1.11
billion). Net income in the quarter decreased 7% to EUR 142 million
(1998: EUR 152 million) and income before income taxes fell 7% to EUR
248 million (1998: EUR 268 million).
"Considering the tremendous impact of the Internet on the market
for business software, we are satisfied with our first half
performance" said Hasso Plattner, Co-Chairman and CEO of SAP AG,
"We are well prepared for these changes and are moving quickly to
seize the opportunities created by the Internet."
STRONGEST GROWTH IN EUROPE
The region comprising Europe, the Middle East and Africa (EMEA)
showed the strongest revenue growth in the first half with an
increase of 25% to EUR 1.15 billion (1998: EUR 920 million). In
the Americas, revenues rose 11% to EUR 969 million (1998: EUR 872
million); at 1998 exchange rates, this rise would have amounted to
16%. Sales in the Asia Pacific (APA) region were up 5% to EUR 214
million (1998: 204 million). If exchange rates had remained
constant, the overall sales growth rate of 17% would have been 2
percentage points higher.
<TABLE>
<CAPTION> <C> <C>
SAP AKTIENGESELLSCHAFT CORPORATE COMMUNICATIONS Phone: +49.62 27.7.4 6311
Systems, Applications, Products Neurottstrasse 16 Fax: +49.62 27.7.4 6331
in Data Processing 69190 Walldorf, Germany Homepage: http://www.sap.com
E-mail: [email protected]
</TABLE>
<PAGE> 2
- 2 -
"We are particularly pleased with our performance in Europe in the
first half," said Henning Kagermann, Co-Chairman and CEO of SAP
AG. "We are confident that our increasing focus on customized
solution projects and our comprehensive cost controls should
enable us to achieve our 1999 targets."
Product revenues rose 4% to EUR 1.35 billion (1998: EUR 1.30
billion) in the first half and again amounted to the largest share
of total sales. Product sales figures for the first half broke
out as follows: software revenue, which consists of license sales
and sales of new software releases was lower by 3% to EUR 1.08
billion; service-related maintenance revenues grew 42% to EUR 272
million. Consulting revenues in the first half showed even
stronger growth, increasing 57 % to EUR 741 million (1998: EUR 471
million). Training revenues grew 9% to EUR 216 million (1998: EUR
199 million). Product revenues accounted for 58% of total sales,
compared to 65% in the first half of 1998.
Kevin McKay, CEO and President of SAP America, said, "We expect
momentum to continue to build into the second half of 1999 based
upon the introduction of our mySAP.com offerings and increased
demand for SAP's R/3 and New Dimension products as the year 2000
issue remits."
STRENGTHENING MARKET LEADERSHIP WITH mySAP.com
Together with the release of its half year results, SAP has
released significant news on its system mySAP.com.
"mySAP.com is the foundation for SAP to strengthen its market
leadership on a long-term basis through an aggressive focus on the
Internet," said Hasso Plattner, Co-Chairman and CEO of SAP AG,
"Our customers are already profiting from the superior technology
and business expertise embodied in SAP's solution packages. This
knowledge will form the basis for our future growth."
SECOND-QUARTER HIGHLIGHTS
Highlights from the second quarter include:
o The second version of the Business Information Warehouse (SAP BW) became
available at the end of March. To date approximately 700 systems have been
delivered worldwide. Roughly 10% of these customers are live with BW.
Eastman Kodak, Pirelli Informatica and Mitsubishi Corporation are among the
first customers deploying this business process analysis software.
o SAP Knowledge Warehouse, SAP's knowledge management software and training
solution, has already been shipped to 350 customers. Version 4 of
Knowledge Warehouse will presumably be available by mid September.
- more -
<PAGE> 3
- 3 -
Among SAP customers using the products are Compaq, John Deere
and Pfleiderer.
o SAP shipped the new SAP Business-to-Business-Procurement (SAP B2B
Procurement) Internet enabled solution at the end of March. Customers
that have opted for SAP software to manage their Internet purchasing
transactions include Lockheed Martin and Anheuser-Busch.
o SAP's APO -- the solution for controlling and optimizing supply chains
that became available at the end of 1998 -- has now been sold to 190
customers worldwide. Wacker Siltronic and Eastman Chemical are among the
first corporations to have gone live with the SAP Advanced Planner and
Optimizer (SAP APO). The enhanced 2.0 version of SAP APO will start
shipping in October.
o With the availability of the SAP Internet Pricing and Configurator, a key
component for electronic commerce and customer relationships management,
SAP has synchronized its Customer Relationship Management application with
its comprehensive mySAP.com Internet strategy. First customers are already
implementing CRM business scenarios among them Viega and Zeneca.
- more -
<PAGE> 4
- 4 -
KEY FIGURES AT A GLANCE (IN EUR MILLIONS)
SAP Group
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
1ST HALF 1999 1ST HALF 1998 CHANGE %CHANGE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
Revenues 2,336 1,996 +340 +17
Income before income taxes 420 441 -21 -5
Net income 240 250 -10 -4
- ------------------------------------------------------------------------------
Headcount
(June 30) 20,880 16,976 +3,904 +23
- ------------------------------------------------------------------------------
- - of which in Germany 8,275 6,805 +1,470 +22
</TABLE>
Any statements contained in this document that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities Litigation
Reform Act of 1995. Words such as "believe," "estimate," "intend," "may,"
"will," "expect," and "project" and similar expressions as they relate to the
Company are intended to identify such forward-looking statements. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations. The factors that could affect the Company's future financial
results are discussed more fully in the Company's filings with the U.S.
Securities and Exchange Commission (the "SEC"), including the Company's Annual
Report on Form 20-F for 1998 filed with the SEC on May 18, 1999. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates.
SAP AG preference and common shares are listed on the Frankfurt Stock Exchange
as well as a number of other exchanges. In the US, SAP's American Depositary
Receipts (ADRs), each worth one-twelfth of a preference share, trade on the New
York Stock Exchange under the symbol 'SAP'. SAP is a component of the DAX, the
index of 30 German blue chip companies.
Information on the SAP AG preference shares is available on Bloomberg under the
symbol SAP3 GR, on Reuters under SAPG_p.F or DE and on Quotron under SAGVD.EU.
Information on the SAP common shares is available on Bloomberg under the symbol
SAP GR, on Reuters under SAPG.F and on Quotron under SAGR.EU. Additional
information is available on SAP AG's home page: http://www.sap.com.
# # #
<PAGE> 5
- 5 -
CONSOLIDATED INCOME STATEMENTS (IN EUR MILLIONS) 2ND QUARTER 1999
- -----------------------------------------------------------------
SAP Group
<TABLE>
<CAPTION>
Q2 1999 Q2 1998 D
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Product revenue 736 726 1%
Consulting revenue 398 262 52%
Training revenue 106 107 -1%
Service revenue 504 369 37%
Other revenue 20 19 5%
- -------------------------------------------------------------------------------
TOTAL REVENUE 1,260 1,114 13%
- -------------------------------------------------------------------------------
Cost of product -107 -79 35%
Cost of service -417 -305 37%
Research and development -170 -152 12%
Sales and marketing -278 -265 5%
General and administration -59 -53 11%
Other income/expenses, net -6 -4 50%
- -------------------------------------------------------------------------------
TOTAL OPERATING EXPENSE -1,037 -858 21%
- -------------------------------------------------------------------------------
OPERATING INCOME 223 256 -13%
- -------------------------------------------------------------------------------
Other non-operating income/
expenses, net -7 7 -200%
Finance income, net 32 5 540%
- -------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 248 268 -7%
- -------------------------------------------------------------------------------
Income taxes -105 -116 -9%
Minority interest -1 0 n.a.
- -------------------------------------------------------------------------------
NET INCOME 142 152 -7%
- -------------------------------------------------------------------------------
DSO (IN DAYS) 108 102
- ----------------------------------------------------------------
</TABLE>
<PAGE> 6
- 6 -
CONSOLIDATED INCOME STATEMENTS (IN EUR MILLIONS) 1ST HALF 1999
- --------------------------------------------------------------
SAP Group
<TABLE>
<CAPTION>
H1 1999 H1 1998 CHANGE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Product revenue 1,351 1,301 4%
Consulting revenue 741 471 57%
Training revenue 216 199 9%
Service revenue 957 670 43%
Other revenue 28 25 12%
- -------------------------------------------------------------------------------
TOTAL REVENUE 2,336 1,996 17%
- -------------------------------------------------------------------------------
Cost of product -203 -156 30%
Cost of service -806 -568 42%
Research and development -308 -260 18%
Sales and marketing -503 -469 7%
General and administration -101 -101 0%
Other income/expenses, net -18 -16 13%
- -------------------------------------------------------------------------------
TOTAL OPERATING EXPENSE -1,939 -1,570 24%
- -------------------------------------------------------------------------------
OPERATING INCOME 397 426 -7%
- -------------------------------------------------------------------------------
Other non-operating income/
expenses, net -13 7 -286%
Finance income, net 36 8 350%
- -------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 420 441 -5%
- -------------------------------------------------------------------------------
Income taxes -179 -191 -6%
Minority interest -1 0 n.a.
- -------------------------------------------------------------------------------
NET INCOME 240 250 -4%
- -------------------------------------------------------------------------------
DSO (IN DAYS) 108 102
- ----------------------------------------------------------------
</TABLE>
<PAGE> 7
- 7 -
CONSOLIDATED BALANCE SHEET (IN EUR MILLIONS) 1ST HALF 1999
SAP Group
<TABLE>
<CAPTION>
ASSETS
06/30/1999 12/31/1998
- ------------------------------------------------------------------------
<S> <C> <C>
Intangible Assets 97 75
- ------------------------------------------------------------------------
Property, plant and equipment 728 645
- ------------------------------------------------------------------------
Financial Assets 263 184
- ------------------------------------------------------------------------
FIXED ASSETS 1,088 904
- ------------------------------------------------------------------------
Inventories/ Accounts receivable
and other assets 1,813 1,676
- ------------------------------------------------------------------------
Liquid assets 654 670
- ------------------------------------------------------------------------
CURRENT ASSETS 2,467 2,346
- ------------------------------------------------------------------------
DEFERRED TAXES 225 114
- ------------------------------------------------------------------------
PREPAID EXPENSES AND DEFERRED CHARGES 71 21
- ------------------------------------------------------------------------
TOTAL ASSETS 3,851 3,385
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHAREHOLDERS' EQUITY AND LIABILITIES
06/30/1999 12/31/1998
- ------------------------------------------------------------------------
<S> <C> <C>
SHAREHOLDERS' EQUITY 1,968 1,818
- ------------------------------------------------------------------------
MINORITY INTEREST 9 7
- ------------------------------------------------------------------------
RESERVES AND ACCRUED LIABILITIES 657 653
- ------------------------------------------------------------------------
OTHER LIABILITIES 678 600
- ------------------------------------------------------------------------
DEFERRED INCOME 539 307
- ------------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 3,851 3,385
- ------------------------------------------------------------------------
</TABLE>
