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SAP reports strong second quarter growth

SAP has reported software and related service revenues of €2.3bn in preliminary financial results for the second quarter of 2010, up 16% compared with a year ago.

SAP has reported software and related service revenues of €2.3bn in preliminary financial results for the second quarter of 2010, up 16% compared with a year ago.

Software revenues alone were up 17% to €637m and total revenues were up 12% to €2.9bn.

Operating profit was €774m, up 21% and operating margin was 26.7%, an increase of 1.8 percentage points compared with the same period in 2009.

Profit after tax was up 15% to €491m and earnings per share of €0.41 were up 14%.

Bill McDermott, co-chief executive of SAP, said large, mid-sized and small enterprises are continuing to invest for growth across many industries.

He ascribed growth, particularly in the US, South America and Asia in part to renewed customer confidence and SAP's expanding partnerships.

Jim Hagemann Snabe, co-chief executive of SAP said the supplier's focus on customer-driven innovation was also key to the company's growth.

SAP's growth in the small and mid-sized enterprise (SME) segment creates a strong foundation for the new version of SAP's on-demand platform Business ByDesign, he said.

The new version will be available from 31 July and is ready for volume deployment in six countries, said Snabe.

SAP also announced that it has completed the cash tender offer for all outstanding shares of common stock of Sybase.

Sybase will operate as a separate company under current chief executive John Chen and remain focussed on its core database and information management business, SAP said.

In its business outlook, SAP said it expects software and software-related service revenue for 2010 to increase between 9% and 11% including the contribution of Sybase.

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