One of the world's largest financial software providers, SAP, has announced its software revenues have crashed by 40% compared with the same period last year.

SAP said its software revenues were €543m in the second quarter of 2009, compared to €898m in Q2 2008. The total revenues for the company are down 10% on the same period in the previous year.

A statement by the company said the drop in revenues is due to the 'continued global economic downturn and the tough comparison to the second quarter of 2008, which was prior to the economic crisis that disrupted the global markets in the third quarter of 2008.'

Software and software related service revenues were down 8% to €1.95bn in 2009 from €2.11bn in 2008 for the same quarter.

Werner Brandt, CFO SAP said: 'For the remainder of the year, we expect to maintain tight cost controls in all areas of the company.'

The results were not all doom and gloom as SAP revealed net income grew by 4% from €408m in 2008 to €423m in 2009. Earnings per share for the company also grew from €0.34 in the second quarter last year to €0.36 in its latest results.

'While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year.' said Léo Apotheker, CEO SAP.

Other results show the financial software provider's operating income increased from €593m in the second quarter of 2008 to €647m in Q2 2009.

SAP nearest rival Oracle announced a 7% drop in net income as well as a 5% fall in its quarter four results.

Further reading:

Arrouays takes CFO role at SAP