SAP Reports Increase In Profit, RevenueSAP Reports Increase In Profit, Revenue

SAP AG reported on Thursday increases in profits and revenues for the first quarter, driven, in part, by strong U.S. sales.

The business applications maker said net income was up 23 percent to $271.5 million, or 88 cents a share, compared to $220.5 million, or 71 cents a share, for the same period a year ago.

Total revenues were $1.9 billion, a 2 percent increase over the $1.8 billion reported last year. Software revenues in the U.S. increased 45 percent.

"We are pleased with the start to 2004 as our results support our expectations for the year," Henning Kagermann, chief executive for the German company, said in a statement. "We reported another excellent quarter from our U.S. organization, which is demonstrating strong sales execution."

SAP left its guidance for the full year unchanged. The company expects software revenues to increase by 10 percent over 2003. Pro forma earnings, which excludes stock-based compensation, acquisition-related charge and impairment-related charges, are expected to be in the range of $4.98 to $5.10 a share.