SAP's revenues up but still to face Oracle appeal
SAP sees revenues up for ninth consecutive quarter, but says legal battle with Oracle over damages payment is ongoing
FINANCIAL SOFTWARE giant SAP has seen its profits and revenues increase for the ninth consecutive quarter because of its push towards online products.
The first quarter of 2012 saw the German company post profit after tax (on an IFRS calculation) of €444m (£362m), up 10% on the same period last year. However, under Non-IFRS that same figure jumped 61% to €583m.
Revenues also increased to 4% to €637m.
SAP attributes its rise in profits and revenues to its internet-based offerings following the acquisition of SuccessFactors, which was finalised earlier this year.
However, SAP gave no information on the amount of money it was allocating for litigation costs against its rival Oracle following a legal battle last year, in its latest accounts.
SAP lost a court case to Oracle over a copyright dispute following SAP’s acquisition of TomorrowWorld from Oracle.
Oracle claimed TomorrowNow employees, who currently work at SAP, stole software and technical information from it, which it labelled as “corporate theft… on the grandest scale”.
SAP managed to slash its damages payment from $1.3bn (£80m) to $272m following an appeal last year.
Oracle is currently appealing that reduction.
A statement from SAP said: “Late last year Oracle filed a motion seeking an early appeal from the ruling vacating the jury’s damages award. The early appeal was denied by the judge on January 6, 2012, and Oracle had the choice to accept the reduced damages of $272 million or seek a new trial to determine damages.
“Oracle elected to proceed with a new trial. The new trial date is currently scheduled for June 18, 2012.”
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SAP managed to increase operating cashflow 30% to €2.07bn compared to the first quarter last year.
Werner Brandt, CFO of SAP, (pictured) said: “Free cash flow was very strong in the first quarter, increasing by 35% to €2 billion. This enabled us to return to positive net liquidity faster than expected.”
However, SAP’s share price dropped 1.1% yesterday, following the results.
The company expects full year 2012 non-IFRS software and software related services revenues to increase between 10% – 12% from the €11.35bn last year.
