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SAP reports surge in market share

A surge in U.S. sales helped fuel SAP's successful Q2.

A slew of new contracts with customers such as PepsiCo. Inc. and other large businesses helped SAP's Q2 revenues...

jump 14% when compared with the same quarter last year, the company reported this morning.

SAP executives said the Q2 numbers show that SAP stole market share from competitors, including PeopleSoft Inc., Oracle Corp., and Siebel Systems Inc.

"Customers are demanding reliability, financial strength, innovative capabilities and a broad product portfolio from their software partners," said SAP CEO Henning Kagermann during a morning call with industry analysts.

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Net income increased from $268 million in 2003 to $305 million , according to the Walldorf, Germany-based company. SAP's Q2 software revenue was $596 million compared with $530 million a year ago, and SAP executives said that a 53% jump in U.S. software revenue helped boost that number.

Last month, PepsiCo signed a deal with SAP to deliver its full mySAP Business Suite to improve the beverage and snack company's supply chain visibility. PepsiCo chose to replace existing Oracle applications with ones provided by SAP.

"SAP is continuing to successfully position themselves as the safe choice and the big stable market leader," said Jim Shepherd, vice president of research at Boston-based AMR Research Inc.

In addition, SAP is opening up new channels and working to capitalize in new sales to small and midsized businesses, Shepherd said.

"They continue to extend their lead in industry vertical solutions," Shepherd said, "and capitalize on the fact that they have more money to spend on research and development than everybody else in the application space."

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