SAP revenue down 10 percent, but profit up

By on
SAP revenue down 10 percent, but profit up

Business software slump hits SAP, but cost control helps.

Business software vendor SAP has reported a 10 percent year-on-year drop in revenue for its second financial quarter.

The German business software giant reported revenues of US$2.58 billion (AU$3.15 billion) from 2008's US$2.86 billion (AU$3.49 billion).

But efforts to contain costs meant SAP's net income of US$423m (AU$517m) showed an increase of four percent from last year's US$408m (AU$499m).

SAP chief financial officer Werner Brandt said company is dealing with the challenging economic conditions.

"Strong cost discipline has proven itself once again, enabling us to report another quarter of strong operating margin growth," he said.

SAP chief executive Léo Apotheker said: “While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year.”

Although software sales crashed 40 percent in the quarter, the figures were bolstered by a 20 percent increase in support revenue.

SAP's chief rival in business software, Oracle, recorded a seven percent net income drop, and a five percent revenue drop in its recent fourth quarter financial results.

Software giant Microsoft recently reported a revenue fall of 17 percent, with profit down nearly a third.

itweek.co.uk @ 2010 Incisive Media
Tags:

Most Read Articles

Log In

Username:
Password:
|  Forgot your password?