January 10, 2006 10:44 AM PST
SAP merges its Americas units
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The reorganization elevates Bill McDermott, who has been chief of SAP North America, the company's fastest-growing unit. McDermott will lead the new SAP Americas unit, the company's second-largest, which generated more than $3 billion in combined revenue in 2004.
SAP has also hired former BearingPoint CEO Rand Blazer to lead U.S. public-sector sales. Blazer replaces Steve Peck, who remains with SAP as head of alliances for the new Americas unit. The company made a number of other appointments, including a new managing director of SAP Latin America and a new senior vice president in charge of Project Mendocino, a joint development effort with Microsoft.
The company also announced that it expects 2005 global revenues to total $10.3 billion, a 13 percent hike over the previous year. Fourth quarter revenue is expected to grow by 15 percent, reaching $3.3 billion.
Software revenue last year exceeded previous estimates, growing 18 percent to $3.4 billion. Earnings per share will stay within the company's previous forecast of $5.85 to $5.97 per share, SAP said.
SAP said it plans to provide more 2005 financial details on Jan. 25.