WALLDORF, Germany -- SAP AG, the leading provider of e-business software solutions, today announced that after a preliminary review it expects fourth quarter software license revenues of approximately euro 950 million. Based on that figure, SAP anticipates its 2002 full-year revenues to increase slightly compared to 2001 full-year revenues with operating margins, excluding stock-based compensation and acquisition related charges, increasing by at least 1 percentage point over the 20% achieved in 2001. License sales are the key indicator of software demand. Aside from license sales, software companies generate revenues from maintenance, consulting, and training. The earnings were also taken as a positive sign for the broader market. "It's an indication of improvement in conditions in the overall business-software market," said Commerzbank's Mr. Thomas. But the euphoria is being tempered by the fact that 2003 is still shaping up to be a "somber" year for the software sector, he added. Despite an 8% decline in license sales for the fourth quarter, SAP is outperforming its closest competitors. Oracle Corp. posted a 14% decline in business-management software license sales in its second quarter, which ended in November. SAP controls about 22% of the $5 billion business software market, while Oracle has about 8%. The fact that even a decline in license sales can be viewed as a positive reflects the difficult state of the business-software market, which has struggled as companies rein in information-technology spending. SAP has navigated the tough market aggressively, grabbing market share from competitors by expanding its product portfolio and selling into its customer base, which totals more than 18,800 companies. They include global giants such as Nestle SA, DaimlerChrysler AG and Siemens AG.