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SAP reported Q1 net income increased 10% to €310 million ($422m), or €0.26/share, compared to analysts' average estimates of €309m (Thomson) to €320m (Bloomberg). Sales rose 6.1% to €2.17b, short of analysts' average estimate of €2.23b (Bloomberg). SAP reiterated '07 operating profit margin guidance of 26% - 27% (vs. 27.3% in '06) and said it sees software and related services sales rising 12% - 14%. SAP-chart-04-19-07 Q1 operating profit margin was flat at 20%. SAP reported its market share of business-management software increased to 25.1% for the year-ended Mar. 31, compared to 24.5% on Dec. 31. SAP's ADRs lost 0.34% to $49.18 in normal trading yesterday and were up a penny in the after-hours on volume of 291,000 shares in what appears to be a large block trade. SAP's ordinary shares were up as much as 3% to €37.17 this morning in Frankfurt.

Sources: Press release, Bloomberg, MarketWatch
Commentary: Is SAP Gaining or Losing Market Share?SAP: Putting Its Customers Ahead Of Its Stock PriceSAP Post-Agassi: Under The MicroscopeSAP Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: SAP AG (SAG). Competitors: Oracle (NYSE:ORCL), Microsoft (NASDAQ:MSFT), International Business Machines (NYSE:IBM). ETFs: Software HOLDRs (NYSE:SWH), Vanguard Information Technology (NYSEARCA:VGT), iShares MSCI Germany Index (NYSEARCA:EWG)

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Source: SAP: Q1 Profit and Sales Rise, But Miss Estimates; FY Guidance Reaffirmed