Software provider SAP expects a strong second quarter, with revenues up 18% on last year to €3.9bn (£3bn) for the three months to June and operating profits increasing by €920,00, a 7% increase.
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In its preliminary results the German ERP giant said in a statement: “Our record performance speaks for itself. We delivered double-digit growth in all regions driven by strong momentum from the core as well as SAP Hana, mobile and the cloud. The results came in at the upper end of our second quarter software revenue guidance in an uncertain macro-economic environment.”
Co-CEOs Bill McDermott and Jim Hagemann Snabe said: “SAP’s customer-centric innovation strategy remains the key differentiator in the industry. The results are a validation that SAP is the better choice for companies to run better in any operating environment – allowing them to improve productivity, reduce costs and grow.”
Angela Eager, analyst at TechMarketView, said the company’s revenues looked more impressive than its profits. “The bottom line stats are not quite as exciting – overall operating profit was up 7% to €0.92bn,” she said.
“SAP paid out a hefty €31m on SuccessFactors redundancies so a substantial number of staff must have gone which seems odd given that it sought the software-as-a-service pure-play for its cloud expertise as much as for its HR applications."
The preliminaries follow the recent results from Oracle which revealed an 8% increase in profits on a 1% increase in sales for the fourth quarter of its 2012 financial year.