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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 nine-month period ended September 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-_______.
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SAP AKTIENGESELLSCHAFT
SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG
FORM 6-K
On October 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 nine-month period ended September 30, 1999, which Press
Release is attached as Exhibit 99.1 hereto and incorporated by reference herein.
Any statements contained in the Exhibits 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.
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EXHIBITS
Exhibit No. Exhibit
- ----------- -------
99.1 Press Release, dated
October 20, 1999.
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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/ Prof. Dr. Henning Kagermann
__________________________________
Name: Prof. Dr. Henning Kagermann
Title: CEO and Co-Chairman
By: /s/ Dieter Matheis
__________________________________
Name: Dieter Matheis
Title: CFO
Date: October 21, 1999
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EXHIBIT INDEX
Exhibit No. Exhibit
- ----------- -------
99.1 Press Release, dated
October 20, 1999.
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[LOGO]
FOR IMMEDIATE RELEASE
Contact: Kevin S. McKay
SAP America
610-661-2733
-or-
Gundolf Moritz
SAP AG
011-49-6227-7-44872
-or-
James P. Prout
Taylor Rafferty Associates
212-889-4350
SAP REPORTS 1999 NINE MONTHS RESULTS
WALLDORF, Germany -- October 20, 1999 -- SAP AG (NYSE: SAP), the leading
provider of inter-enterprise solutions, today announced that its sales for the
first nine months of 1999 grew 14% to EUR 3.46 from EUR 3.04 billion in the
same period last year. Net income in the first nine months fell by 24% to EUR
285 (1998: EUR 375) million. Third quarter revenues rose 7% to EUR 1.12 (1998:
EUR 1.05) billion. Net income in the quarter decreased 64% to EUR 45 (1998: EUR
125) million.
"Even though we are in a difficult market environment, we are still
disappointed by these results," said Hasso Plattner, Co-Chairman and CEO of SAP
AG, "However, with the overwhelmingly positive reception given our new
mySAP.com Internet products, which we presented in the US in mid-September, as
well as our overall Internet strategy, we are moving quickly to seize the
leadership position in business-to-business e-commerce. Therefore we continue
to invest in mySAP.com."
REVENUE BY REGION AND ACTIVITY
SAP's Europe, the Middle East and Africa (EMEA) region reported 21% revenue
growth to EUR 1.66 (1998: EUR 1.37) billion in the first nine months of the
year. In the Americas, revenues rose 5% to EUR 1.46 (1998: EUR 1.39) billion
for the same period. Sales in the Asia Pacific (APA) region were up 18% to EUR
339 (1998: EUR 287) million in the first nine months. Third quarter sales in
EMEA rose 13% to EUR 506 (447) million. In the Americas, revenues were down 5%
to EUR 492 (517) million in the third quarter, while they increased by
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51% to EUR 125 (83) million in the Asia Pacific (APA) region.
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Product revenues rose 2% to EUR 1.96 (1998: EUR 1.93) billion in the first
nine months and again comprised the largest share of total sales. Product
sales figures for the first nine months broke out as follows: software
revenue, which consists of license sales and sales of new software releases,
was lower by 6% to EUR 1.54 (1998: EUR 1.63) billion; service-related
maintenance revenues grew 43% to EUR 420 (EUR 293) million. Consulting
revenues showed even stronger growth in the first nine months, increasing 50%
to EUR 1,139 (EUR 758) million. Training revenues fell slightly (by 1%) to EUR
306 (1998: EUR 308). Product revenues accounted for 57% of total sales,
compared to 63% in the first nine months of 1998.
Lower than expected product sales in the third quarter were due mainly to
slower license sales in the Americas region and Japan, as well as weaker
revenues in the United Kingdom. In Japan and the UK management has been
strengthened, while in the Americas the company continues to focus on the
introduction and marketing of the mySAP.com offerings to customers and
prospects. The fall in the proportion of total sales constituted by product
revenues led to a lower pre-tax profit margin for the third quarter in 1999
compared to the same period in 1998. The Board now expects the 1999 pre-tax
profit margin to fall below the 1998 level instead of increasing slightly, as
was originally expected.
TOWARDS 2000
"We think that we can achieve software revenues for the fourth quarter of this
year that will exceed those posted in the fourth quarter of last year. This
would mean that total sales for 1999 would show an increase of 15 to 20%
compared to 1998," said Henning Kagermann, Co-Chairman and CEO of SAP AG, "A
lot, of course, depends on the effect of the new millennium on customers'
purchasing behavior."
The investments in marketing and development that are vital to the success of
mySAP.com leave SAP little possibility for extensive cost containment measures.
As a result, this investment will also negatively impact the pre-tax profit
margin for 1999.
THIRD-QUARTER HIGHLIGHTS
Highlights from the third quarter include:
o SAP presented mySAP.com, its new Internet-enabled product, at its
eleventh North American user conference, SAPPHIRE'99, in Philadelphia in
mid-September. This open, e-business solutions environment enabling
business-community collaboration, began shipping to first customers at
the end of September. Another highlight of the Philadelphia conference
was the inauguration of the virtual Internet marketplace at
www.mySAP.com. The mySAP.com strategy is based on the following four
elements:
O The mySAP.com Marketplace, an open, virtual hub enabling
inter-enterprise purchasing, sales and communications.
O The mySAP.com Workplace, a business-oriented company
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portal that allows users to conveniently access all the functions and
data they need to do their job via a personalized, browser-based work
environment
O The mySAP.com business scenarios, which provide collaborative,
role-based solutions for fully integrated business processing between
enterprises and between providers and end consumers based on SAP and
third-party software
O Access to applications via the Internet as a cost-effective means of
benefiting from the entire scope of the mySAP.com solutions within a
very short timeframe.
In total over 18,000 people attended SAPPHIRE'99 and SAPTechEd'99, a
conference for software developers that was held the previous week.
o Over 850 Business Information Warehouse (SAP BW) systems have been
shipped to date. Another business intelligence software product, the SAP
Knowledge Warehouse, has been delivered to more than 420 customers. The
organizations that have installed this knowledge management and training
solution include Stadtwerke Munchen, International Paper and Schott
Glaswerke.
o SAP's Internet-enabled Business-to-Business Procurement (SAP B2B
Procurement) solution that began shipping in March has now been shipped
to over 200 customers worldwide. Customers that have opted for SAP
software to manage their Internet purchasing transactions include Delta
Air Lines, Ericsson and Osram.
o SAP's Advanced Planner and Optimizer (SAP APO) has been delivered to
nearly 300 customers. Among the customers that deploy the SAP solution
for controlling and optimizing supply chains are Bayer and ThyssenKrupp.
The next, enhanced release-Version 2.0-will start shipping on schedule
at the end of October.
o SAP's Customer Relationship Management solutions has been installed over
300 times into the customer base. Customers that have opted for SAP
software to manage and optimize their customer relationships include
Hoechst Marion Roussel, Grundig and Peugeot Citreon.
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KEY FIGURES AT A GLANCE (IN EUR MILLIONS)
SAP Group
<TABLE>
<CAPTION>
JAN.-- SEPT. JAN. - SEPT. CHANGE %CHANGE
1999 1998
----------- ----------- ------ -------
<S> <C> <C> <C> <C>
Revenues 3,459 3,043 416 14
------- ------------ ----- --
Income before income
taxes 499 662 -163 -25
------- ------------ ----- --
Net income 285 375 -90 -24
------- ------------ ----- --
Headcount
(September 30) 21,086 18,330 2,756 15
------- ------------ ----- --
- - of which in Germany 8,352 7,256 1,096 15
</TABLE>
Any statements contained in this documents 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 (ADR's), 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.
# # #
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CONSOLIDATED INCOME STATEMENTS SAP GROUP
3RD QUARTER (IN EUR MILLIONS)
<TABLE>
<CAPTION>
1999 1998 CHANGE
----------- --------- --------
<S> <C> <C> <C>
Product revenue 611 626 -2%
Consulting revenue 398 287 39%
Training revenue 90 109 -17%
Service revenue 488 396 23%
Other revenue 24 25 -4%
----- -----
TOTAL REVENUE 1,123 1,047 7%
----- -----
Cost of product -103 -89 16%
Cost of service -401 -312 29%
Research and development -173 -143 21%
Sales and marketing -287 -245 17%
General and administration -67 -53 26%
Other income/expenses, net -10 -3 233%
----- -----
TOTAL OPERATING EXPENSE -1,041 -845 23%
----- -----
OPERATING INCOME 82 202 -59%
----- -----
Other non-operating income/
expenses, net -6 16 -138%
Finance income, net 3 3 0%
----- -----
INCOME BEFORE INCOME TAXES 79 221 -64%
----- -----
Income taxes -33 -96 -66%
Minority interest -1 0 n.a.
----- -----
NET INCOME 45 125 -64%
----- -----
DSO (IN DAYS) 110 104
----- -----
</TABLE>
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CONSOLIDATED INCOME STATEMENTS SAP GROUP
1ST - 3RD QUARTER (IN EUR MILLIONS)
<TABLE>
<CAPTION>
1999 1998 CHANGE
----------- ----------- --------
<S> <C> <C> <C>
Product revenue 1,962 1,927 2%
Consulting revenue 1,139 758 50%
Training revenue 306 308 -1%
Service revenue 1,445 1,066 36%
Other revenue 52 50 4%
----- -----
TOTAL REVENUE 3,459 3,043 14%
- ------------- ----- -----
Cost of product -306 -245 25%
Cost of service -1,207 -880 37%
Research and development -481 -403 19%
Sales and marketing -790 -714 11%
General and administration -168 -154 9%
Other income/expenses, net -28 -19 47%
----- -----
TOTAL OPERATING EXPENSE -2,980 -2,415 23%
- ----------------------- ----- -----
OPERATING INCOME 479 628 -24%
- ---------------- ----- -----
Other non-operating income/
expenses, net -19 23 -183%
Finance income, net 39 11 255%
----- -----
INCOME BEFORE INCOME TAXES 499 662 -25%
- -------------------------- ----- -----
Income taxes -212 -287 -26%
Minority interest -2 0 n.a.
----- -----
NET INCOME 285 375 -24%
- ---------- ----- -----
DSO (IN DAYS) 110 104
- ------------- ----- -----
</TABLE>
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CONSOLIDATED BALANCE SHEET SAP GROUP
1ST - 3RD QUARTER (IN EUR MILLIONS)
ASSETS
<TABLE>
<CAPTION>
09/30/1999 12/31/1998
---------- ----------
<S> <C> <C>
INTANGIBLE ASSETS 90 75
PROPERTY, PLANT AND EQUIPMENT 750 645
FINANCIAL ASSETS 364 184
----- -----
FIXED ASSETS 1,204 904
INVENTORIES/ ACCOUNTS RECEIVABLE
AND OTHER ASSETS 1,584 1,676
LIQUID ASSETS 616 670
----- -----
CURRENT ASSETS 2,200 2,346
DEFERRED TAXES 250 182
PREPAID EXPENSES AND DEFERRED CHARGES 58 21
----- -----
TOTAL ASSETS 3,712 3,453
----- -----
</TABLE>
SHAREHOLDERS' EQUITY AND LIABILITIES
<TABLE>
<CAPTION>
09/30/1999 12/31/1998
---------- ----------
<S> <C> <C>
SHAREHOLDERS' EQUITY 2,039 1,818
MINORITY INTEREST 9 7
RESERVES AND ACCRUED LIABILITIES 720 721
OTHER LIABILITIES 587 600
DEFERRED INCOME 357 307
----- -----
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 3,712 3,453
----- -----
</TABLE>
