Strong Euro Hurts SAPStrong Euro Hurts SAP

SAP AG on Tuesday reported a 3% drop in revenue for the fourth quarter due to a strong euro.

Total revenue for the quarter was $2.82 billion, down from $2.94 billion in the same period a year ago. Software sales also declined 3% in the quarter, to $1.19 billion from $1.22 billion a year ago.

On a constant currency basis, however, both total and software revenues rose 4% from a year ago, the German business-software maker said.

SAP raised the forecast for its pro forma operating margin for 2003 to 27% from 25%, excluding stock-based compensation and acquisition-related charges. Pro forma operating margin for 2002 was 23%.

Total revenue for 2003 are expected to be about $8.93 billion, a decline of 5% from 2002 revenue of $9.44 billion, the company said. On a constant currency basis, revenue for the year were up 3% from last year.