TechnologyDouble digit growth for SAP

Double digit growth for SAP

First quarter results at German software giant show growth in excess of 80%

SAP, the financial software giant, has posted operating profit increases of
81% and profits before tax rises of 97%.

The first quarter results for the software suppliers, who provide technology
to McDonalds, Pepsi Co and Apple, have surpassed analyst expectations.

SAP switched to IFRS reporting and under those rules operating profit
increased a huge 81% to €557m compared to €307m for the same quarter in 2009.
The company believes the 2009 figures were impacted by restructuring costs of
€166m last year.

Non IFRS profits after tax increased 65% to €435. This equates to a IFRS
increase of 97% from €196 in the first quarter of this year to €387 for Q1 2010.

“A solid top-line performance in combination with an increasing operating
margin puts us on track to achieve our financial objective of profitable growth
over the long term,” said Werner Brandt, CFO of SAP

The company expects 2010 results to show a non-IFRS software revenue increase
of 4% – 8% from 2009 revenues of €8.2bn, compared to a 5% decline the previous
year.

The company recently lossed its CEO Leo Apotheker after the chairman, Hasso
Plattner, announced the business would go back to having two chief execs.

Plattner admitted mistakes were made by the management when they tried to
increase support service fees by 22% last year.

Further reading:

Oracle
bites into SAP market share

SAP
chairman admits customer trust was lost

Related Articles

SAP falters in face of cloud targets

Technology SAP falters in face of cloud targets

3y Calum Fuller, Reporter
SAP's revenues up but still to face Oracle appeal

Company News SAP's revenues up but still to face Oracle appeal

6y Rachael Singh, Writer
SAP profits increase to £2.8bn

Company News SAP profits increase to £2.8bn

6y Richard Crump, Writer
Court slashes damages SAP due to pay Oracle

Technology Court slashes damages SAP due to pay Oracle

6y Nicola Brittain
SAP shows strong first quarter

Technology SAP shows strong first quarter

7y Rachael Singh, Writer
SAP profits hit by Oracle litigation

Technology SAP profits hit by Oracle litigation

7y Rachael Singh, Writer
PwC's Webb joins Deloitte's IT practice

People In Practice PwC's Webb joins Deloitte's IT practice

7y Kevin Reed, Writer
Solid Q3 results from SAP fail to excite investors

Company News Solid Q3 results from SAP fail to excite investors

7y Paul Grant, Writer