Second quarter 2006 product revenues are expected to be approximately ¬1,48bn, representing an increase of 9% compared to the same quarter last year. Total revenues for the 2006 second quarter are expected to be approximately ¬2,2bn, which represents an increase of 9% compared to the 2005 second quarter.
 
The second quarter 2006 pro forma operating income is expected to be around ¬558m, representing an increase of 13% compared to the second quarter of last year and the pro forma operating margin is expected to increase by approximately 80 basis points to 25,4% compared to the second quarter of 2005.

The second quarter pro forma net income is expected to be approximately ¬432m, representing an increase of 38% compared to the same quarter last year, and pro forma earnings per share is expected to be approximately ¬1,41 per share, which represents an increase of 38% compared to the second quarter of 2005.

The second quarter 2006 pro forma operating margin can be reconciled to the operating margin by adjusting operating income for stock-based compensation (approximately ¬16m) and acquisition-related charges (approximately ¬11m).
 

The Americas region, which includes the US, Canada and Latin America, is expected to report software revenues of ¬239m for the second quarter of 2006, representing an increase of 18% compared to the second quarter of 2005. In the US, software revenues for the second quarter of 2006 are expected to increase by 16% to ¬201m compared to the second quarter of 2005.

In the EMEA region, second quarter 2006 software revenues are expected to increase by 3% to ¬296m. Second quarter 2006 software revenues in Germany are expected to increase by 8% to ¬100m.

In the APA (Asia/Pacific) region, second quarter 2006 software revenues are expected to be flat at ¬86m. Second quarter 2006 software revenues in Japan are expected to decrease by 4% to ¬23m.
 
 
The company also announced that it reaffirmed its outlook for 2006 and as a result it continues to provide the following outlook for the full-year 2006 as described in its first quarter results press release.
 

With our results in the first half of 2006, we are within our targeted range for product revenue growth, pro forma operating margin growth and pro forma earnings per share, says Henning Kagermann, CEO of SAP. Therefore, we remain confident for the remainder of 2006, as demonstrated by the reaffirmation of our full-year 2006 outlook.