German financial software maker SAP’s net income has dropped 10% over the last year.
Their net income, based on non-US GAAP, dropped 10% from €2,210m (£1,919m) compared to €2,000m in 2008. On a US GAAP basis the company saw a decline of 4%.
The company reduced operating expenses by €650m to €7.8bn with restructuring costs totaling €200m. On a U.S GAAP and non-GAAP basis the company announced operating income was negatively impacted by restructuring charges of €196m which resulted in a reduction of positions. The company managed to reduce operating expenses by €650m to €7.8bn.
“As a result of a very difficult and unstable market environment that began in the third quarter of 2008 and then continued into 2009, we rapidly put into place a plan to reduce operating expenses in order to protect our operating margin” said Werner Brandt, CFO of SAP.
SAP is switching from US GAAP to IFRS on the advice of the US Securities and Exchange Commission, which proposed American listed companies report financial results in this way by 2014.
The company surprised the markets earlier this month by posting stronger than expected fourth quarter results in Asia.
“Along with margin expansion for 2010, we are also ready to return to top-line growth, although the market continues to be challenging and uncertainty among customers still exists,” chief executive Leo Apotheker said in a statement.
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